Despite the fact that not everyone can make money in the financial markets, there are many traders in binary options trading who make stable monthly profits. Some people withdraw money from their account several times a month, while others, on the contrary, leave it in the account to increase their minimum deposit . Based on this, novice traders who have achieved a stable income often have a question: how often should they withdraw money from a binary options broker ? Next, we will try to answer this question and consider it from different angles.
Content:
- Why is it worth withdrawing profits from a binary options broker?
- What amount can be withdrawn from a binary options broker;
- How to withdraw money from a broker and at the same time increase profits in binary options;
- The main problems when withdrawing money from a binary options broker;
- Conclusion.
Why is it worth withdrawing profits from a binary options broker?
A stable and constant withdrawal of money from a broker is important for several reasons. The first and main reason is that regular withdrawal has a positive effect on the human condition. By receiving funds to his own wallet or bank card, the trader receives a reward for his work and understands that he is not trading in vain. Also, if money is withdrawn constantly, this shows that the trader has achieved real results from trading and understands how his strategy or indicator works. Money stored in a trading account does not have the same effect, since until you can use your funds to make purchases in real life, they are worth nothing.
The second reason is that regular withdrawals stimulate the trader to conduct trading activities or, to put it another way, have a positive effect on the mental state, since, having received financial “feeding”, a person experiences pleasure and joy.
Professional traders know the benefits of withdrawing profits and therefore advise withdrawing money from a broker once a week. But what you shouldn’t do is withdraw profits every day. An exception may be cases where the income turned out to be very large.
How much can you withdraw from a binary options broker?
When withdrawing money, you should take into account money management and risk management . This is important because according to these rules, you cannot invest more than 3-5% of the amount on deposit in one transaction. A number of traders limit themselves to 1%. To understand this condition, you can give an example. The trader’s capital is $1,000. The minimum investment in one transaction should then be $10. That is, by investing such an amount, the trader risks 1% of the deposit amount.
To meet capital and risk management requirements, it is recommended to withdraw money from the broker so that there is at least $1,000 left in the account. If this rule is not followed, the risks when buying binary options will increase, which can lead to increased losses. Therefore, you can withdraw any amounts except the main working deposit. And if it’s $1,000, then anything more can be bet on withdrawal.
How to withdraw money from a broker and at the same time increase profits in binary options
The easiest way to increase your income is to either make more trades or increase the amount you invest per trade. Both one and the other contradict the rules of money management and risk management, since if we make more transactions or simply increase their amount, the risks will increase significantly.
Another way to increase profits from trading is to additionally replenish your deposit. But not everyone has this opportunity, and for some it doesn’t make sense at all.
You can also try to find more profitable methods for trading binary options , but in this case there is a greater chance that you will waste time (and maybe money), but this will not bring any benefit. This is especially pointless if you already have a proven and working trading system.
And yet, there is one way that will help both increase your trading deposit and withdraw money from a binary options broker. This can be done if you bet only 80% of the profit for withdrawal, and leave 20% in the account. In this way, you will gradually increase your deposit, due to which your profit will also increase. And at the same time, you will also withdraw money from the account. For example, consider a situation where the monthly profit was $1,000 and the trading account itself is $3,000. You could bet $800 for withdrawal and leave $200 in the account. In this case, your working deposit would already be $3,200. If you use 1% of the deposit on each trade, then instead of $30, your trade would be $32. And if the profit from the option is 90%, then instead of $27 you will get $28.8. Once you reach a deposit of $4,000, the profit from the transaction may be $36, and so on as the amount in the account increases.
Of course, you can decide for yourself how often to withdraw profits (once a week or once a month) and what percentage of profits to withdraw and what to leave. But if you are going to use this approach, then you should not leave more than 50% of the profit in the account.
The main problems when withdrawing money from a binary options broker
The main problem when withdrawing funds from your account is the situation when you are trading with a fraudulent broker . Therefore, when you create a withdrawal request, it may not be processed or you may be completely refused to withdraw money under any pretext. This is one of the ways such companies commit fraud .
What to do in this case? Unfortunately, there are very few options and most likely you will not be able to get your money back. The only advice is to carefully check the broker before funding your account. Trusted companies most often have been working on the market for more than one year, and in extreme cases, you can find many reviews about any of them on the Internet.
Conclusion
By following the advice outlined in this article, you can not only make a profit from trading binary options, but also understand how often you need to withdraw money from the broker. Don't forget that no matter how often you plan to withdraw money, always adhere to money and risk management rules, and choose trusted binary options brokers.
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See also:
Binary options trading platforms
Will binary options be closed in Russia in 2022?
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