In this post we are going to discuss how you can turn $100 into $1 million in 12 months trading binary options. Binary options are instruments that allow you to bet on the direction of the market. For example, right now EURUSD maybe at 1.07314. You bet that in the next 5 minutes EURUSD will close above 1.07314. 1.07314 is known as the strike price. Strike price is the price at which enter into the trade. If you think the price will close above the strike price, you buy a call. If you think the price will close below the strike price, you buy a put. Whatever, you should be familiar with binary options terminology.
Trading System Is Very Important
Let’s return to the topic of our post. Is it possible to turn $100 into a million dollar in 12 months trading binary options? It is very much possible if you have a trading system that can give you signals with high degree of accuracy. If you don’t have that trading system, then you might as well forget your $100 because soon you are going to lose that. In binary options trading it is essential that you have a very high winrate. Something like 90% if you want to consistently grow your account. So the first thing that you need to do is develop a trading system that has got a high winrate. Something like 90% as said above.
Developing a trading system might not be easy. Then look for a trading system that is being sold in the market. This requires you to test a number of trading systems that are being sold. Don’t believe that the sales page claims. Do your own testing. Testing requires patience. Don’t invest your money. Just open $1 trades and make at least 50 trades. Then calculate the average winrate. If it is high then you can test it more. You can also paper trade the signals. Just make an excel sheet and paper trade each signal. Make at least 50-100 trades and calculate the average winrate.
Your trading system can give signals for 5 minute, 15 minute or 30 minute expiry options. I would suggest it should give signals 5 minute as well as 15 minute and 30 minute. Why? On 5 minute you have got ample of signals. If your trading system can filter out most of the false signals and pick only 4 signals in 60 minutes, it would be really great. During these 60 minutes it can also give 15 minute and 30 minute expiry signals. In 60 minutes, there are twelve 5 minutes, four 15 minutes and two 30 minutes. So your aim should be to develop a trading system that can generate 5 minute as well as 15 minute and 30 minute signals at least 4 in 60 minutes.
Risk Management Is The Second Most Important Thing
Suppose you have finally developed or found a trading system that has got a high winrate. Now you just need to follow strict risk and money management regime and achieve your goals. Suppose you start with $100. Keep the risk 2%. Always remember keeping the risk low will keep you in the game for a very long time without suffering a catastrophic loss. You just need to make 4 trades daily to make 100% gain per month.
Let’s do the maths and see how you are going to turn $100 into $1 million in 12 months. You start with $100. Your risk is 2% at all times. So your trade size should be $2. Suppose your broker gives you 74% return. This means each trade is going to make a profit of $1.48. If you make 4 trades daily, you make $5.92. Make sure you win these 4 trades. Just 4 trades daily. Follow this rule with patience and discipline. In a month there are 20 days, so you are going to make a profit of $118.4 in a month. Which means you have doubled the account in 1 month with a risk of 2%.
Next month you have got $218 in your account. Your risk level is 2% so you are going to make $4 size trades. Do the maths at the end of the month you should have $0.74X4X4X20=$236.8. So you have again doubled the account to $454.8.
So if you continue doubling your account each month, you will end up with a million dollars in 12 months. Do the maths yourself. Just keep the risk level at 2% and make 4 winning trades daily. 2 winning trades in the morning and 2 winning trades in the evening and you can easily achieve your target.
I am coding an indicator that will give at least 4 winning trades daily. If you want that indicator just email me. Good Luck!