Are you a trader in Expert Option?
What are some of the most important questions which you strive to answer in your trading journey?
Do you sometimes wonder exactly where your trading journey is headed?
What about just how much money you can make trading in Expert Option?
Is there a quote of how much money you can make while trading or does that totally depend on you and what you do while trading?
Well, we intend to find answers to such and many more questions in this guide.
This post is meant to shed led on how much money you can make trading in Expert Option.
But then those that have never been into trading and are visiting us for the first time might be wondering what sort of thing it is that we are talking about.
Trading…Expert Option…some jargon that needs explanation, right?
Well, shall first explain all that, then proceed.
What is Online Trading?
Online trading is the buying and selling of digital financial assets which are listed on the asset market.
Here, you do not have to possess goods or services (assets) in order to buy or sell them.
You only invest in the change in their value over a period of time, after which you can reap huge returns.
If you choose a given asset, you carry out market analysis and study past data of its price.
After that, you can then decide which direction the price of such an asset will go.
If you hope that such price will go up in future, you only need to click on the Buy or up button and wait.
However, if you anticipate such price to fall, all you need to do is hit the Sell or down button and wait.
If the price moves in your favor, you are meant to profit from the price movement but if it moves against you, then a loss is inevitable.
Assets traded online include Currency pairs (Forex), Cryptocurrency, Indices, Commodities, ETFs, Bonds, and Stocks, among others.
You can invest in the change in prices of such assets and stand a chance to profit big-time.
Online trading has been the secret to attaining financial freedom for many, and so you might consider it as well.
A disclaimer though is that patience and putting in effort are inevitable if success in online trading will be realized.
Basic Knowledge about Brokers.
One thing you will need to understand before we proceed is that for you to be able to trade online, you need access to the assets mentioned above.
The only institution that can give you access to the markets is called a broker.
A broker, therefore, is the link between traders and the asset market.
At the beginning of every trader’s trading journey, they must choose a broker, from the thousands of them that exist.
Some have even been conned at the very onset of their trading journey by falling for scammers posing as brokers.
That makes this step of the trading journey very important and critical, and that is where we come in handy to inform you accordingly.
I have used several brokers to trade the asset market and one which stands out among them, which I would strongly recommend, is Expert Option, a reliable broker.
Using a reliable and trusted broker is a key pillar in making money with online trading.
What is Expert Option?
So what is Expert Option?
Expert Option is an online Binary Options trading platform.
The platform offers over 100 different financial assets which include Currencies, Cryptocurrencies, Commodities, Indices, and Stocks. Expert Option offers a $10,000 free Demo account and Up to 95% returns on the invested amount!
The minimum deposit amount with Expert Option is just $10 and the minimum trading amount is only $1.
This makes it quite simple to get started.
Great bonuses are also available on deposits.
The minimum withdrawal amount from Expert Option is $10 as well.
You can trade via their website or by downloading one of their apps.
Expert Option began providing services in 2014 and executes more than 30 million deals every month.
The broker is an FMRC authorized broker that holds a license from one of the world’s reputable regulatory body, VFSC.
If you want to learn how to make money with the Expert Option, you can do so here (How to Make Money with Expert Option).
The focus of this post will be on a different subject – how much money can I make trading in Expert Option.
How Much Money Can You Make Trading In Expert Option?
So back to the main question of this post. Just how much money can you make trading in Expert Option?
Is it $100, $500, $1000, or how much is it?
Truth be told, you can never actually tell how much you can make, without a specific duration within which we are defining the amount.
So let us say that you are looking at it in terms of monthly, quarterly, or annually.
How much can you make trading in Expert Option monthly?
What about quarterly?
Then for the long-term investors, how much money do you think you can make trading in Expert Option annually?
Do you really expect me to quote a figure and point out that it is this much that you can make trading in Expert Option in any given duration?
I hope I am not disappointing you by saying that it depends.
I didn’t serve your expectations right, true or true?
Well, by saying that it depends, then I will not have helped you at all by not telling you what exactly it depends on.
So, what factors determine how much money you can make trading in Expert Option, now that we can’t without reservation quote a specific amount?
Such factors will form the bulk of the next part of this post.
These factors are regardless of the duration in which you are determining your profits – monthly, quarterly, or annually.
Shouldn’t we first shortlist them?
I thought so, and so here are the factors defining how much money you can make trading in Expert Option:
- Trading Experience.
- Trading Psychology.
- Initial Deposit.
- Trade Size.
- Money Management.
- Win Rate.
- Frequency of Trading.
- Compounding Versus Regular Withdrawals.
So for how long have you been trading in Expert Option now? Has it been months, a year, a couple of years or are you just beginning?
One thing you will have to agree with me is that enough experience doing something sharpens you in some way.
If you have just begun trading the other day, I can tell that you have been struggling to understand how things work in online trading.
Assuming you open a real Expert Option account being as green as you are, we both know that possibilities of making meaningful profits trading are close to zero.
Mark you, you began and may not be in a capacity to know how prices of different assets behave and how to respond to various market conditions.
However, if you have been trading for quite some time in Expert Option, I bet you understand the trading platform and have learned a thing or two about how prices of different assets behave.
Your focus has been to make money trading and so I am sure you must have invested time in learning how to do so.
With all such wealth of experience demo trading and formulating trading and money management strategies as well as mastering trading psychology, you are bound to make more money trading than a newbie.
It is agreeable between you and me that having spent some time learning the markets and formulating strategies is a valuable step of trading.
This gives you enough experience because you can tell when to and when not to enter trades depending on the prevailing market conditions.
Not only so but you have also mastered trading psychology to tame your emotions and keep them under control while trading.
Doing so will make you more money trading in Expert Option.
Do not rush in excitement to invest money in your Expert Option trading account.
Most of the time you never make a penny because you lose all the invested capital.
Mind you, 95% of new traders never make it in trading.
It is due to being inexperienced and not being ready to pay the price by amassing a wealth of experience.
If there is something I have learned to always do while trading, is to leave my emotions behind.
They will do you no good at all unless making consistent losses is something you would term ‘good’.
One of the pros of demo-trading is in order to develop positive trading psychology.
Positive trading psychology entails everything to do with putting your emotions under control while trading.
That is because if you let them control how you continue trading, you will shoot your trading plan and trading strategy down and begin listening to your emotions.
See below some emotions and how they affect the trader.
The earlier you learn to tame them, the earlier you become that successful trader you have been dreaming about.
It is hard to successfully operate in the stock market without optimism.
However, you only need enough optimism to survive here.
Superfluous optimism, which is not based on technical analysis, is a common cause of losses due to overconfident buying near or at the top of prices.
Pessimism causes people to sell their stock, to be cautious, and to be suspicious towards uptrends.
Reasonable pessimism saves an investor from reckless buying, while unreasonable pessimism holds traders from profitable usage of positive market situations.
Fear deprives the trader of the opportunity to earn, forcing them to withdraw from trades and sell positions at too low a price.
Fearful investors tend to often anticipate downtrends and therefore are not eager to buy.
People who are powered by fear most of their time soon realize that the stock market is not their true purpose and probably not for them and quit.
That is why you should always follow a certain trading strategy.
That way, you will be sure that you are doing everything right, and protecting yourself from spontaneous fear-based decisions.
When a trader is greedy, they try to make too much profit and deviate from their strategy.
Greed deprives a person of the ability to think soberly and objectively, as they don’t get out of the trade on time, and neglect adequate risk management.
All this can lead to losses.
Therefore, always stick to your trading plan, even if you think that it is not overly profitable.
Of course, this advice is relevant if you are confident in your strategy.
If fear deters the trader from actions, then hope, on the contrary, keeps them in a losing trade.
These two emotions go hand in hand. If the investment is successful, hope turns into pride, and in case of failure, then it turns into regret and fear.
It is from the harmful effects of hope that a trader resorts to an adequate assessment of their transactions and a good understanding of how the market works transpires.
Regret of a lost profit or a losing trade is normal.
However, if you give too much attention to sadness and disappointment, you can distract yourself and lose motivation.
To turn off emotions, analyze a failed trade and understand what went wrong, and then try to distract yourself from regret by looking at other potential opportunities.
Sometimes this can be difficult, however, the trader needs to be able to manage their emotions.
Here is the verdict.
If you succumb to your emotions, the chances of profiting while trading in Expert Option are as thin.
However, if you tame them by developing positive trading psychology, then how much you make will definitely shoot.
Do you want to hear one thing I always say? I always believe and say that it takes money to make money.
How much returns you get is directly proportional to how much investment you make.
How big or small your trading account is has a lot to say about how much money you will make trading in Expert Option.
The reason I say so is that small accounts do not allow you to explore much as far as position sizing and risk management are concerned.
Large accounts, however, allow you to stretch yourself and size your initial stakes well, as well as perform proper risk management without strain.
So what then?
If you begin small, you will make little out of the markets because you will stake little and anticipate little in return.
If you begin with a huge account, on the other hand, chances of staking much and consequently anticipating much are high.
Expert Option is a binary options broker. That means that the broker offers a fixed rate of return for every asset.
Actually, you can earn returns of up to 95% of the invested amount in Expert Option.
Now, take for example a trader who invests $10 and another who invests $100 on the same asset with returns of 80% on the invested amount.
The first trader will make $8 for that trade as the other makes $80 for the same trade.
Do you now see how much your trade size impacts how much money you make while trading in Expert Option?
How much you stake is entirely informed by how much your initial capital is.
That is because we have said time and again that you should ensure you risk only a small percentage of your trading account, say up to 10% per trade.
So ensure you get things right from the moment you are making your initial deposit to avert trouble when deciding your trade size.
Forget becoming a successful trader in Expert Option if you ignore money management while trading.
But what is money management in Expert Option?
Money management is any method used to conserve your trading capital from depletion as you take risks in the trading environment.
There is no point in getting your capital depleted so soon.
The goal is to ensure you continue trading because the potential to profit from trading is indeed huge.
Therefore, remaining afloat despite the risks is paramount, and can only be possible if traders exercise money management.
Which money management systems suit the Expert Option trading platform?
I will reveal them to you, and then you can go ahead to choose which one suits you best.
Fixed Trade Size.
Here, if you decide that your trade size will be $50, it will be so all through.
You will not add or deduct anything under any circumstance whatsoever.
Whether you place a trade and win or lose, the next trade will still be placed using $50.
Will this money management method grow your account?
Yes, it will, if you win most of your trades.
Let’s say you place a total of 10 trades with a return of 80% in each trade and win only 6 out of the 10.
You will have earned $40 six times making $240 and lost $50 four times which makes $200 and such is a net profit.
Win more trades repeatedly than those that you lose and your account will keep growing.
This method will preserve your account from depletion by keeping you from doubling your stake in a bid to earn more and recover the lost money immediately.
Remember you can also lose that doubled trade too.
The Parley Method.
The Parley Method involves investing a certain amount in the first trade and then adding the earned profits to the initial trade size before entering the next trade.
In brief, in addition to the initial trade size, you add the profits of the previous trade to get the trade size of the next trade.
You realize that this method has a great potential of growing your account faster than the fixed trade size if you are involved in a row of winning trades.
Unfortunately, the markets will at times disappoint you with some losses.
When you lose, revert to the very initial trade size and begin another series.
The more you grow your account using this method, the more it will move away from possible depletion.
Isn’t that the whole goal of money management? Sure it is.
The Martingale Method.
This method involves doubling your trade size when you lose a trade.
After winning the doubled trade, you revert back to the initial trade size and begin another series.
The method aims at recovering money lost in previously lost trades and earns you even far much more profits.
Let’s say for example you begin trading with $10 on an asset with 80% returns.
You lose the first trade and double that to $20.
As if that was not enough, you also lose the second trade and double it to $40 and finally win this one.
You get profits worth $32 hence recovering the $30 lost in the first two trades and an additional $2.
Return to $10 and begin another series doubling if you lose.
Remember you need to have enough capital on your trading account to be able to double and still remain stable in case you lose doubled trades.
This method will recover your losses and grow your account, moving your account a step further from possible depletion.
The Anti-Martingale Method.
This Method is the complete opposite of the Martingale method.
It involves halving the trade size each time you lose.
After winning the halved trade, you go back to the initial higher trade size and begin another series.
The method aims at taking advantage of winning trades and favorable market conditions to build your account as well as reducing your exposure after a losing trade.
You realize that this method helps to reduce the exposure of your account once it senses danger by losing a trade.
It also helps to grow your account fast once it senses a market strength which drives your account further away from quick depletion.
If you do not manage your money well while trading in Expert Option, your guess is as good as mine as to how much you can make in terms of profits.
However, if you take heed and employ good money management in your trading, your chances of success are so high and you can make so much money trading in Expert Option.
One thing we will have to agree on before we proceed any further into the discussion on win rate is that every successful trader in Expert Option has a trading strategy.
A trading strategy is any set of rules which informs when, where, and in what direction to enter the market.
Trading strategies with good win rates are preferred to those with poor win rates.
A win rate is simply a ratio of how many trades are won against how many are lost in a given number of trades taken using a given strategy.
If your strategy has a win rate of above 50%, then in any given number of trades, the net effect will be a profit. That is as far as binary options trading in Expert Option is concerned.
However, if your strategy has a win rate of below 50%, then in any given number of trades, the net effect will be a loss.
What you need to do here is to sharpen your trading strategy so that it has a win rate of above 50%.
The more the win rate to that strategy of yours goes above 50%, the more money you are bound to make trading binary options in Expert Option.
However, the more the win rate to your strategy dips from whichever percentage towards 50%, the less money you make trading binary options in Expert Option.
You know that we can’t talk about a win rate below 50% because then, you won’t be making any money but losing.
Our interest here is how much you can make, not how much you can lose, right? Exactly.
Frequency of Trading.
So how frequently does your strategy allow you to visit the markets and trade in Expert Option?
Is it once in two weeks or once every month or daily or at what frequency?
There is a huge difference between traders who visit their trading accounts once a month and those who visit the markets daily.
If the two employ the same stake and similar money management and their strategies are effective, you already know who is bound to make more money.
The trader on the markets daily will of course make more money, holding some factors constant.
So what about this frequency thing?
Get a strategy that allows you to frequently make trades and win them.
Avoid strategies that only allow you to make trades at odd frequencies which may even have chances of losing.
Being on the markets frequently means more trades and more money for effective trading and risk management strategies.
Conversely, being on the markets a few times means less money, for whichever strategies.
Compounding Versus Regular Withdrawals.
So what kind of trader in Expert Option are you?
The one who compounds their profits in their trading account or the one who withdraws frequently?
Well, I believe that traders who compound their earnings in their trading accounts will at any given time have bigger accounts to utilize in trading.
Those who withdraw frequently may have smaller accounts, limiting their chances of staking big to win big.
But does it really matter?
What you call a big account by a trader who compounds may even be smaller than an account of a trader who withdraws frequently.
Well, comparison in trading, is the thief of joy, so compounding is about you, not the other trader.
The more you compound your earnings, the bigger your account grows, and so the bigger your stake is likely to be.
Consequently, your returns in Expert Option are likely to be higher.
However, if you withdraw every profit you make, your stake size will remain as small as the initial.
Consequently, your earnings will stagnate at the same low level hence making less money trading in Expert Option.
Wrapping Up on How Much Money I Can Make Trading in Expert Option.
You now have all the facts.
The factors which determine how much you make trading in Expert Option are with you.
So tell me, how much can you make trading in Expert Option?
The answer is simple. You can make as much as you rightly play around with the factors we have discussed.
For each, you know what to do to make less money and also what to do to make more money trading in Expert Option.
What else shall we say then?