Home Why Loosing Happens More Often Than Winning When Trading Options?

Why Loosing Happens More Often Than Winning When Trading Options?

It’s easier to lose money in the 21stcentury than it is to make it. In fact, the internet is filled with lots of scams. From credit card scams to investment scams, it is getting less safe on the internet every day. One money-losing system is the binary options trading system.

In just a few years, binary options websites have gained popularity very quickly. More binary options brokers come into existence daily, each one promising the same thing: we will make you a bucketload of cash.

Binary options trading websites operate under a type of gambling system. They appeal to people dedicated to playing poker online or those who bet on sports. In comparison to gambling however, these binary options trading sites stand out in a unique way as they present themselves as investment firms. However, they are gambling sites, just more exotic. Eventually, they do shut down when regulators come knocking.

Before that happens though, they would have done a good deal of business. If you type “binary options trading brokers” into the Google search engine, you will find over 900,000 hits on the search results. A couple of years ago, you may have found featured ad promotions on Google’s first page which read something like this: “Earn 80% profit every hour”. Google played it smart though and banned all binary options ads. You’ll know why very soon.

Buying Binary Options (Placing the Bet)

Binary option brokers let you buy options which are also called digital options, “all-or-nothing” options or fixed return options (FROs). These options trade on stocks and on many other financial assets on the foreign exchange.

They allow you to place a bet (which is basically all binary options trading is) on anything whatsoever traded on the public market. The range of financial assets to trade on varies with each binary options website. Some offer more choices than their counterparts, and some binary options websites provide you with a free guide or e-book that covers the topic. It all seems very professional at this point, so you get sucked in deeper.

After you have opened an account with a binary options broker, they will tell you that binary options trading is a new ground-breaking investment. They use the word “investment” a lot, so be mindful of that. Many of these sites offer their clients a binary options contract that gives them the right to buy an underlying asset at fixed prices within a specific period of time. Who are you buying these assets from; the binary options website, of course.

The binary options brokers then proceeds to convince you that they offer a controlled risk on investments of the underlying assets. That is, you stand to earn big if you guess right on any trade. The idea of a low-cost investment, and an easy account set-up with a credit card, may convince you to start a trade. But the reality is, it’s all a bet. If you guess right, you win a certain percentage on your investment; but if you guess wrong, you lose all your investment. Sometimes, kind binary options brokers give you a small percentage of your cash back.

One of the most popular binary options broker is IQ Option. They are the legit star under option brokers and they also offer cash back guarantee in some cases. To get more information and a full review of the futures of the IQ Option trading platform visit this article here: https://www.business24-7.ae/iq-option-review

Before you make another trade, here are some reasons why you should quit it now.

Reasons to Avoid Binary Options Trading

  1. It is super addictive: Because the amounts you place on bets are relatively small, youmay feel motivated to trade more until you make a profit. After each trade, you’ll always be left with a feeling of “I’ll earn next time.” Before you know it, you’ve piled up a costly amount of trades – and in one day too. At this point, you may feel too committed to binary options trading to quit.
  1. No one is that good at forecasting:You can gobble up the news on economic releases every hour, every day, and you still won’t be knowledgeable enough to constantly predict the future value of a stock or commodity. No one knows if Apple or Microsoft’s shares will rise or fall in the next 5 minutes. No one knows. Unless the companies send out a major press release, you can’t predict the outcome. That’s what binary options websites offer you:the chance to make money off the right predictions knowing full well it’s a game of chance.
  2. Ridiculous percentage gains: Consider a binary options website that pays $30 on a $50 investment; and let’s say you get $10 back for every loss. Let’s assume you make 100 trades, and win 60 of them; your profit is $1,800. But your 40 losses will cost you $1600. So, basically, you have to make at least 50 successful trades just to break even.
  3. Binary options websites are unregulated: Yes, it’s all unregulated. The Securities Commission doesn’t regulate any of it. It’s all a façade. Now, think, how does this not compare to a Ponzi scheme, but worse?

Conclusion

If after reading all this information, you still want to invest in binary options trades, then that’s fine. But don’t confuse a bet with real investing, because binary options trading is nothing more than a game of chance; an all-or-nothing bet. You can read more about binary options in this article here: https://www.business24-7.ae/binary-options