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  1. #1
    Administrator Martin Kay's Avatar

    Hot Deposit Minimum, Come Collect Your $100ks in 24 Years! !!!

    Hi, guys! This week we are glad to present again a Great Article for Beginner Traders written by Michael Hodges. It will explain you why starting with little capital is not an option for fast profits and money, especially if you have bills to pay. Read this article and you will find much more on what is important for your start in binary options trading!

    Originaly posted by Michael Hodges

    So, you think youre going to get rich quick with binary options and $200? If you think youre having a hard time paying your bills now just wait and see how hard it is after you drop 200 bones in your brokers pocket. There is no getting rich quick, not even with binary options. If your trading account is only $200 the maximum safe trade I could recommend would be risking $10. How fast are you going to get rich making an average $8 return on trades? It would take 12,500 trades to turn your $200 into $100,000. At the rate of 2 trades per day would take about 24 years to raise $100,000.

  2. #2
    Solid Member susan's Avatar
    I started trading with 500 bucks and I don’t think it is bad if you start with small account. Actually it is more about the trading improvement, not about only the profit in the beginning. When you become comfortable with your trading style you will find more money and will trade larger account and also I know there are traders which started with relatively small accounts like 10-20k and now they are trading several millions accounts, and all this in a matter of 5 years. So I don’t think it is bad idea to start small, even it has the advantages that you will learn a lot without the risk of losing big money.

  3. #3
    Legendry Member milos's Avatar
    I started to trade in exchange rates with 2 years ago. Of course it is almost impossible to earn from $ 100 to earn $ 7000.I started with $ 100 a month and earned $ 10.If you invest $ 5,000 to the monthly sum where you can earn around 200-400 dollars approximately. That's true to you, it means earnings are not great, but who knows that trades can lose money.
    And that's a problem and we all think they can deal with the fact that . By my opinion, a great deal has been made on a daily basis if you earn 1-2% relative to the amount invested. If you invested $ 100 a day to earn 1-2 dollars is enough. I mention this as a beginner. I include won and lost. I think $ 500 is more than enough investment for the serious and experienced traders.

  4. #4
    M.J is offline
    Veteran Member M.J's Avatar
    Totally agree with Michael. I think he should go even further to write that 12500 is only if u win all trades. Considering a realistic situation it would almost be impossible to earn 100,000 from 100 unless u get extremely lucky. Michael did a great job with words. Lets do some math below.

    Assumptions:- 80% if u win, 0% if u loose
    Startup capital = $200
    Your win rate = 70%
    Value of each option purchased = $10

    Trades required to reach $100,000 = 17857
    With 5 trades a day, you would need = 3571 days = 11.4 years

    Same assumptions but lets raise win rate to 80%
    Trades required to reach $100,000 = 15625
    With 5 trades a day, you would need = 3125 days = 10 years

    So are u really getting any benefit? If u try to get over aggressive, u will loose investment and even with 5 trades a day, u r risking 25% of ur capital per day. It is not advisable. With 2 trades per day, it would take around 30 years (24 years if u win every trade).

    Bottom line is trade only when u have extra cash and u can afford to loose that investment. This bottom line is written on every trading service provider website but almost every novice ignores it.

  5. #5
    Specialist Member LesterK's Avatar
    Absolutely right M.J! Even this scenario with 70% wining rate and 5 trades per day is too optimistic as there will be a substantial risk for bigger lose which will delay the successful finishing. The only way for collecting big profits is to start with big initial investment, in order of 10k or more, but we have to start this way only if we already have the ability to trade profitably and convinced., otherwise we have to trade only small test accounts before we gain enough conviction in our capabilities.

  6. #6
    Junior Member
    From what I can gather, Susan is spot on. I think $500 would be a reasonable amount for an opening account. Once you are happy with your trading style and you are achieving consistent results, why on earth would you make low value trades? If you don't have confidence in your trading method, then you shouldn't be trading.

  7. #7
    Master Member vinayakm's Avatar
    Great. This has really cleared up a lot of doubts and trading capital issues. I get a lot of questions about getting started with $250. My answer remains the same: all good things take time. Trading binary options and making money off it is a hard skill and it can definitely be learned, but it will take time and experience.

  8. #8
    M.J is offline
    Veteran Member M.J's Avatar
    Objective of smaller capital should be to test a strategy or, for a newbie, to practice trading. But most of the times "smaller capital" is all a novice trader has and he aims for maximum returns.
    During discussions we talk about 10%, 15% or 20% maximum realistic monthly return. So if a trader has set an objective of 20% per day, then he is definitely going to blow his savings very soon.

  9. #9
    Rookie Member
    Once I find a good legit group, I will bypass the bonus money. When I get ready to withdrawal, send me my money!

  10. #10
    Legendry Member Michael Hodges's Avatar
    You guys are right on the money! This thread is a great example of how the forum is used to best result....the comments section adds so much to the original article it has become a knowledge center here on BOTS.

    Small accounts are fine, big ones are fine.. just don't expect too much from it. I like to keep track on a percentage basis, that way if I gain 5%, 10% or 30% in one month it is a better comparison to the previous month. Also, by sticking with percentages and not dollar amounts your position size increases as your account increases. Honestly, since binary's don't have commissions, small accounts are perfect. you can make safe trades, work on your strategy and system and not have to worry about trading enough to overcome commissions and slippage.

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