Can binary options traders become millionaires is a question that is asked quite frequently. Particularly by those who have never traded with binary options before. They are hoping that this is a method that they can utilize to make some quick money, fast. Due to a lack of understanding of the actual system in place, many people simply assume that they will immediately begin making money this way.
From a theoretical point of view, yes, you can become a millionaire with binary options trading. Of course, by that logic, almost any form of trading or investment could make people incredibly rich. So, why aren’t there crowds of traders in the world? This is because while the math may be solid, the actual execution of this plan is less simple.
What Will It Take?
There have been individuals who have actually calculated what it would take to become a millionaire. For the sake of this example, let’s say that you started off with $500 in your account. Within the first month of trading, you will need to achieve a profit of 15 percent.
This means that you would have made $575 in that first month. If you wish to be a millionaire, you are going to have to ensure that you make a profit of 15 percent for every other month as well. Now, in this hypothetical situation, you cannot extract any of the funds from your account. It must all remain there until you reach your goal. If you continue in this manner of making fifteen percent each month, you will be a millionaire in five years.
Has Anyone Done This?
There has been no veritable proof regarding a binary options millionaire. There have certainly been many ventures claiming to make individuals millionaires but they have all been revealed to be scams. Therefore, there is no way of knowing if someone has set out to do what the above figures claim can be done. For now, it all remains to be a theory.
What Are the Challenges?
Now, you can make significant amounts of money with binary options. Whether you can become a millionaire is another thing entirely. This is because there are many obstacles to this plan. The first being that it can be very difficult to guarantee that you will always a 15 percent profit every month.
You may make this – or more – for one month. However, there is no guarantee that you can continue to do so. This is because everyone has their winning and losing streaks. Sometimes, these outcomes are beyond the control of the trader and he or she must simply wait it out.
Now, imagine for instance, that a trader attempts to overcome their losing streak by investing more and more. Even if you are absolutely certain about the outcome of the trade, there are still limitations in place. For instance, each broker has a set amount of money that they will allow you to place on any one trade. Therefore, you cannot simply invest as much as you would like.
This is a comprehensive response to the question can binary options traders become millionaires. While there is no definitive proof that you cannot do such a thing, it certainly will be difficult.