Avoiding the Dangers of Binary Options

Hello,

Recently, i have received a few messages of users,
who asked me if there are some reliable gambling strategy or EA for binary options.

The important topic, that I really want to touch upon is the fact that traders could be sucked into greed and end up using binary options as a gambling tool.
If gambling is your thing and you understand the risks, go for it, but as a general rule avoid the use of binary options as a gambling tool.
You will see how easy it is to potentially make money (and lose money), that you could end up taking bigger risks than you are accustomed to and in the end, you could be posting large losses.

Do not let this be you!

Come into binary options the same as you would with stocks, forex, options, etc and you will have a higher chance of success.


Remember, it is always important to have a trading plan, as it will lead to higher probabilities of success.


Best Regards,
William

A while ago, I thought to give it a try.. I opened a demo account, but to me, it felt exactly like pulling the one arm bandit's lever (gambling) Just say up or down and if you guessed right you win.
Then the broker called me and told me not to use it as a way of gambling - apparently you can do technical analysis to give you more of an educated guess..
I decided it was not for me. It has become a huge business though.. In my city a young guy drives around with a flashy car with personalized number plates that read : BINARY. A clever tactic. So they recruit many others to lose their money this way.


This is just my experience of it and my opinion.. decide for yourself.

I am novice trader, i ever seen an advertisement about it, looks like interesting how it easy to make money, but don't know the real fact, hope an binary option trader give their story about that.

Not saying is good or bad... But you HAVE TO STUDY THE MARKET to make educated decision. Yes, you can make money with binaries and even easier is to lose. I have had VERY small account 2 years ago and lost almost everything with binaries (1 and 5 minute trades). Then I started with Forex with not so much luck there either. I have stopped both and I've learned a lot during those times. In the meantime, I did some my own research, price action, candle patterns etc. and just recently (mid November) started with the demo account (in forex) and live account with binaries. Doing both simultaneously with my strategy and so far so good. In forex I am up just slightly over 8% and in Binary I am up 45%. Just to be clear, this is very SMALL Account and I do trades between 1 hr and 8 hours. Will see how far this is going to take me. I honestly, don't care much if I lose all my money on Binary because only few bad trades could potentially wipe out your account but my ultimate goal is to be steady on Forex with proper MM and gain 5% a month. When I reach 30% on my demo account and, ONLY then will I think of opening LIVE account.

I guess martingale likers should fall in love with that stuff ;-) Thank you for posting, reasonable precaution for newcomers who think about binaries.

Forex trading and especially binary options trading carries a high level of risk. Take into account the fact that you might happen upon a dishonest broker, and your risk increases exponentially. For example, in the past six years alone French citizens have lost 4 billion Euro, which they invested in Forex and Binary options brokers, many of them fraudulent. (https://smnweekly.com/2016/05/17/amf-reports-staggering-losses-from-online-trading-calls-for-ban-on-advertising-scrutiny-of-football-sponsorships/) The situation is so bad that the French government is considering a ban on online advertisement of these services. My point is, it's very important to consider the risk when you decide to start trading.

Well, one should avoid gambling. And that is exactly what binary options are. Will the EURUSD be up or down from the current 1.11437 in 5 minutes or even 30 minutes, no news in sight.

Just to be clear, it is even classified as gambling and not financial trading in the UK. Atleast it makes it tax free.

stian posted:
Well, one should avoid gambling. And that is exactly what binary options are. Will the EURUSD be up or down from the current 1.11437 in 5 minutes or even 30 minutes, no news in sight.

Just to be clear, it is even classified as gambling and not financial trading in the UK. Atleast it makes it tax free.

I agree. And that explains why there are so much scam alerts about binary options brokers, by far exceeding the regular brokers.

Casino it's more profitable then binary

Go to casino , play black or read and you will win 100% of bet (if you win)

Go to Binary , play red or green and you will win 80% of bet (if you win)

so if you like ganbling, go to casino , you will can play more long time

But I never sow Casino bank rupt and many players loosing all they money

Binary it's not trading it's bad Casino nothing more

Personally, I'd say that it's best to avoid gambling altogether. Unless you're very rich and you're doing it for fun it's just not worth the risk.

stay awaay from trading binary option because it is truly gambling, even the chance to win is 50:50 you will always with loss for sure

If we talk about 50:50 winning chance, probability of profit:loss is equal, but considering that commission is charged, you'll lose your funds anyway

William82 posted:
Hello,

Recently, i have received a few messages of users,
who asked me if there are some reliable gambling strategy or EA for binary options.

The important topic, that I really want to touch upon is the fact that traders could be sucked into greed and end up using binary options as a gambling tool.
If gambling is your thing and you understand the risks, go for it, but as a general rule avoid the use of binary options as a gambling tool.
You will see how easy it is to potentially make money (and lose money), that you could end up taking bigger risks than you are accustomed to and in the end, you could be posting large losses.

Do not let this be you!

Come into binary options the same as you would with stocks, forex, options, etc and you will have a higher chance of success.


Remember, it is always important to have a trading plan, as it will lead to higher probabilities of success.


Best Regards,
William

Yea. I opened an account with Nadex, and boy was that a mistake. I'm back to Oanda now starting yesterday and got +78 pips since then in eurusd.

The FCA recently warned about another shady binary options broker called Limited Binary. (https://smnweekly.com/2016/07/13/fca-warns-unauthorized-limited-binary-broker-site-identical-shady-ones/) They claim they have an office right behind the Tower of London, but their website is only in French. At the bottom of the site the broker claims it has 23 585 traders, of which 17 596 are winning. Limited Binary claims it is registered with the FCA with the number 45796, but a check in the Financial Services Registry revealed it was assigned to one Caroline Powell, who used to work for the company Advice Times, but is no longer working there. And on top of everything else, they've put a bunch of smudgy decals claiming “money back guaranteed”, “trusted genuine” and “2013 top broker”.