Binary options trading: How can I make money from negative growth

By Nikolai Kuznetsov

As an expert in the financial industry, my friends tend to ask me quite a few questions with regard to how they can make money in the market. Recently, however, we’ve been in the midst of down market times.

As a result, the general question asked has changed from “How do I make money in the market?” to “How can I make money from negative growth in the market?” The answer for me is relatively simple. The best way to go about making money in down markets is through the process of binary options trading. So today, I’ll go over a brief overview of what binary options trading is, why it’s perfect for trading down markets, and a few tips that will help you get started.

What Is Binary Options Trading

Binary options trading is a very unique way to go about making money in the market. Essentially, when trading binary options, you’re not buying or selling any financial asset. Instead, the trader is simply making predictions with regard to what he thinks is likely to happen in the market. If those predictions are correct, the trader can earn returns as high as 80%. The process is relatively simple.

First, the trader picks an asset that he thinks is likely to move up or down as the result of research he’s done on the asset. Then, if he thinks the asset will move up, the trader purchases a call option. Adversely, if it’s believed that the value of the asset will move down, the trader purchases a put option. From there, the trader picks the amount of time he thinks it will take for the movement to happen; this becomes the expiry period. Once the option expires, the trader earns a return if the prediction was correct or realizes a loss if the prediction was incorrect.

Why Binary Options Trading Is Perfect For Down Markets

Because binary options traders aren’t necessarily purchasing any financial asset, binary options are perfect for making money during down markets. As mentioned above, if the trader believes that the value of a financial asset is likely to decline, he purchases a put option. If he’s correct, the gains are his to have! So, binary options give traders a great way to realize a profit; even when markets are down.

Tips to Get You Started

There are a couple of things that you should keep in mind if you plan on getting started in the binary options industry…

• Planning Is Important – A profitable trader always has a trading plan. These plans include loss exposure management strategies, strategies to help maximize gains, and more. The reality is that without a plan, it’s easy to get caught up in the excitement and make the wrong moves, risk too much money, or both! Therefore, creating a plan before you start trading is a great way to protect yourself from unnecessary loss and maximize your earnings potential.
• Never Trade On Emotions – Unfortunately, I see this time and time again. A beginner will make a few profitable trades and get excited. As a result, he will start risking more and more money; and no one can be right 100% of the time. Therefore, the excessive risk leads to excessive losses. It’s also common for beginners to face a loss and try to fix the problem by throwing more money at the issue in an emotional response. The bottom line is that to be profitable, it’s best to keep emotions out of the equation and follow your plan.

Final Thoughts

Even though markets are struggling, that doesn’t mean that you can’t make money through trading financial assets. Binary options give traders a great way to go about realizing gains in a down market. So, what are you waiting for, it’s time to start trading and earning money!

Nikolai is an award-winning financial analyst and professional trader. Nikolai has been trading multiple markets and educating traders since 2005. He has extensive experience in stock market analysis, investment research, and various assets such as FX, commodities, equities, and bonds.
He is an expert when it comes to technical and statistical analysis of the currency, stock, ETF and emerging markets.
When he’s not getting his daily dose of analytic chart research he enjoys a game of chess or a good workout at the gym as Nikolai is also a black belt Brazilian Jiu-Jitsu Practitioner.

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