Binary Options Trading – Big Profits or Sad Losses

Introduction: Binary Options Trading – Big Profits or Sad Losses

In recent years there has been a huge surge in the popularity of binary options trading. This is seen as an alternative option to traditional gambling. Essentially it involves betting on two possible outcomes which involve commodities, Forex currency pairs, indexes and/or stocks. On the whole, you decide which of your two outcomes are more likely, and hopefully you’ll be able to turn a profit if you picked the right one. It goes without saying that if you’re wrong then you stand to lose either all or almost all of the money you invested in that particular option.

Even though binary options trading has become popular thanks to online trading apps like Robinhood, many people are unsure as to what the whole palava is all about. To that end, we thought we would spend some time with this article clarifying the most important and long-standing misconceptions about binary options trading. These are, essentially, the myths and truths, only the real players of this trading game will understand.

Binary Options Trading is Like Gambling

It’s easy to see why many people assume that binary options trading is so similar, if not the same, as going to casinos to win the jackpot. This is because it’s impossible to predict with 100% certainty whether the trade is going to be successful or whether it will fail, with will losing your money in the process. You should realize that you are taking a chance with every trade you make. Having said that, you have to remember that binary options traders have access to a huge amount of information which they can then use to educate and inform themselves, in order to make better decisions.

So though there’s a risk factor, to a certain degree, a binary options trader would argue that it’s not the same when compared to the blind luck needed when rolling the dice at any casino game. having said that, we do like to head over to the online casino once in a while. When we do, we choose Omni Slots Casino. They have a huge selection of games and great live dealer deals.

Binary Options Trading is Just For The Rich

Of course, if you are phenomenally wealthy, then you can trade and make money with everything as you have a large cash cushion to protect you against bad trades. But being wealthy is not a prerequisite of being able to trade binary options. In fact, you can trade for as little as $10 for each action. If you happen to have an extra $50 lying around doing nothing, then it’s perfectly feasible to start trading with that. Traditionally, in order to trade Forex currency pairs and commodities, you needed a lot of money in the bank, but with binary options trading, the amounts needed to get started on very small indeed. Just a small investment could see you win the jackpot online.

It’s a Steep Learning Curve

Not really. Once you understand the fundamentals, which are surprisingly simple, then you’ll be able to find plenty of demonstration videos on YouTube, for example. Once you’ve opened a trading account, you can access a demo account as a means of practicing with virtual currency. This will allow you to see how the system functions and to see whether you have any skills. In this way there’s no need to dive straight in at the deep end. Using a demo account allows you to put your toe in to test the water, before taking the plunge.

Binary Options Trading is a Scam

This is a myth perpetuated by those who know little about binary options trading. There are just two parts involved, the trader and their trades. Of course there is the broker through which you will be buying and selling your options, though they work on your instructions. It’s both common and, to a certain degree natural, that bad trades will lead to a trader being angry at their broker. But it’s easy to label the broker at fault when in truth is the trader who makes the trades.

Unfortunately losses often lead to traders claiming that they were scammed by their own brokers. As rokers need a financial services licence to accept trades, the likelihood of being scammed is very, very rare.

Trading Options Generate Quick Returns

Just as with gambling, the larger the amounts you wager, the greater the possible returns. And in the same way that playing certain casino table games will see a huge rate of betting, buying, and selling binary options can also turn a huge profit in a matter of minutes. But on the other side of the coin, you could also lose a huge amount of money within the same time span. We suggest sticking to low risk trades which may only produce modest returns, but are much safer than placing large sums on riskier trades. This is really about being sensible in order to increase your jackpot winning chances.

As binary trading options require a certain level of knowledge and education, it’s not a good idea to jump in thinking that you will strike it rich overnight. This is surely a short recipe for disaster.

It’s Impossible to Predict Outcomes

Here we are again, comparing binary options trading with gambling. If you were to look at this from a purely statistical point of view, then yes, it’s true that you cannot predict any outcome with 100% certainty. But if you were to narrow down your field of trades to certain options, then the probability of you being successful is certain to go up. In fact, it’s quite possible to find some options traders to have a 99% rate of successful trades. As with all things in life, everything depends on how much time and energy you’re willing to invest in learning and research.

If you apply yourself and your knowledge, then there’s no reason why you can’t predict with greater accuracy the outcomes of your trades better than if you were playing casino jackpot games. We suggest that you research and then research some more.

Bonus Offers Equals Free Trades

Just like online casinos offer all sorts of incentives to attract new customers, it’s exactly the same story when dealing with binary options brokers. They make their living from taking a commission from each trade, whether it wins or loses. To that end, they have a persistent hunger to find new traders. Some of these broker’s incentives will be the offer of free trades, which allow you to try your hand at binary options trading without using your own money. But there’s no such thing as a free lunch. Just as in the same way online casinos have wagering requirements, you’ll find that brokers will have very heavy terms and conditions applying to these offers.

Often, you’ll need to trade a certain number of times the overall value of the bonus offer with your own cash, before you can access the bonus offer in question. Sound familiar? Just as online casinos don’t actually give away free money, no brokerage would do the same. But we do have an online casino that gives a huge welcome bonus. Omni Slots Casino will give you 150% up to €500, plus 70 free spins, just for signing up! You don’t need to be an expert binary options trader to see a good deal!

Binary Options Trading is Addictive And Dangerous

Once again we come to another perceived similarity to online gambling. It goes without saying that with both of these actions you need to carefully manage your money or bankroll. We suggest you only ever make decisions based on your research and logic. As with gambling at an online casino, never let emotion come into the equation. And just like gambling, providing you are able to manage to enjoy yourself whilst remaining responsible, then there’s nothing to worry about. But if you’re the type of player who tends to wing it based on your emotions, then you shouldn’t be trading binary options or gambling at the casino for that matter. 

To see how binary options trading works in real-time, we suggest that you open a demo account with any of the money brokers available. By doing several trades using a virtual currency, you’ll be able to see whether binary options trading is for you.