Binary Options Trading

[KGB8405]

Good Day Everyone'

Im not sure whether im posting this under the correct topic, but here goes. I recently stumbled across Binary Options Trading. Im very interested in this, because of the money that can be made, but I have also seen videos on youtube where people warn against this. Is there anyone here that can perhaps guide me in the right direction or give me some advice regarding this. All feedback will be appreciated.

Thanks

 

[Sonic2k]

So you fell for the scammers?
Do you know I have these sites blocked in my browser because they come up with their pop-up ads whenever I visit a torrent site.
Its a load of BS, just like the other pop-ups "German Banker's secrets" etc, etc..

 

[Zukat]

Its not really bull****, but it is close to gambling.

Basically you are betting if the price will be above or below the current price at the time of the option expiry, if you are correct you will get 80% profit on the amount you gambled, if its not in your favour you lose 100% of the money put in on the trade.

 

[Sonic2k]

Gambling is a tax for those who cannot do math.

 

[jassielarry]

Binary options trading platform may require the investor to deposit a sum of money to purchase the option. If the option expires out-of-the-money, meaning the investor chose the wrong proposition, the trading platform may take the entire sum of deposited money with no refund provided.

 

[Gaz{M}]

Im very interested in this, because of the money that can be made,
Thanks

There's the problem. The videos are so enticing, because the guy doing the demonstration 'wins' more trades than he loses and it "looks so easy". The problem is, these demo videos are created with 'play money' test accounts and obviously the guy making the video will keep trying until he gets a series of 'wins' and then only post that portion as the demo.

The bottom line is as with everything: if it seems too good to be true, it IS. These sites are also illegal as they break many foreign exchange regulations and stock market regulations. Also, to withdraw your potential winnings, are you going to send them all your personal information? Identity theft alert.

You are much better off being less greedy and investing in proper shares, ETF's or unit trusts in South Africa.

 

[matt_za]

How can you think of trading these options if you dont know what they are?

 

[^^vampire^^]

It's easier to go to the local casino and bet on red or black. At least this way there's no chance of fraud from people stealing your details. Also you can just lose your money directly without having to pay a service provider account fees.

 

[TimWarren12]

Totally agree with you GAZ(M) ETF's and stocks are a much better way of making money. Why go for gambling when you've got much easier and decent things to make money from. My dad could be a perfect advisor for you on this issue (GOD he's been asking every one of my friends to get into this stuff!!! ) he's a recommended me some good stuff on the internet too like this one http://amzn.to/1ynhZSe was helpful and it'l give you an idea what you want to begin with. I guess you need to talk out to a financial advisor or someone who is already experienced in this field so that you're sure enough you don't lose money. goodluck

 

[^^vampire^^]

Binary trading has the ability to generate large sums of money very quickly whilst doing the exact same in terms of losing. If you don't employ strict risk management and discipline, you will lose all your money because then you are associating it with gambling. Gambling and technical analysis are two very different things. The fact that binary is simply a fixed return as opposed to a variable from CFD trading, doesn't mean it's a gamble. If you're getting CFD trading right and making money, binary options are just a different form of doing so. Either way, if you are serious about trading you shouldn't ignore the instruments out there. Everyone to their own, just don't condemn those you haven't tried.

Fair enough, although most people who would consider binary trading would see it as an easy pick up or down option and a quick way to make money - such is the allure of binary trading to newbies. With this type of attitude it's doubtful that many would take the time (of which many hours would be required) to analyse and pick correctly and that's why people generally equate it to gambling.

 

[DJ...]

How can you think of trading these options if you dont know what they are?

This, this, this...

 

[Sodan]

Over 99% of people trading Forex lose their money. While I don't have stats for binary options, I imagine the "success" rate is similar.

The biggest bit of advice I can give you (and it was part of the disclaimer of the company I worked for):

Never trade with money you cannot afford to lose.

Start with a demo account, and trade it for at least 3 months, but preferably 6 months. Note that you will be prone to take crazy risks with your demo account, since it's just monopoly money. That's okay, initially.

Once your wild side has calmed down, open a fresh demo account with very low funds, and trade as if it was real money, for a period of at least 2 months.
If at any point you start throwing caution to the wind, remember that the same will happen to you when you have a live account, and you will then simply throw away real money at that point. Then you have to start your 2 month simulated "real money" trail again, on a new account, with low funds.
If come out of that making money (note that you will have learnt A LOT about the market by this time... certainly a lot more than you know now), then you probably still won't be ready to trade with real money, but you'll be much better prepared than you are now.

For the purpose of emphasis, I reiterate:

Never trade with money you cannot afford to lose.