Binary Options Trading Are Getting Hot
You may have heard about a new type of investing that is becoming extremely popular, especially on the internet, and you may want to know how you can cash in. It’s called Binary Options Trading. Binary Options Strategy Trading offers their investors the chance to double their investment in the course of a trading day. Sounds too good to be true? It is.
Binary Options Trading boils down into betting. “Investors” are doing nothing of the sort. Those that engage in this sort of game are betting on the flows of the stock market. It can be argued that all investing is a sort of bet, and that all investors are relying on their ability to understand the flows of the market and make choices accordingly.
So what makes Binary Options trading different?
First, it’s the time periods. These bets are made over an extremely short increment of time, sometimes only five minutes, rarely is it more than a day. While savvy investors can read the market and invest accordingly depending on their beliefs about the future of the market over a reasonable time frame, it is almost impossible to predict the flows of the market in the next five minutes. Unless a company has just made a large announcement (and you’ve found out about it in some way) there is no sure way to know how to “invest.”
Secondly, Binary Options Trading is an ‘All or Nothing” proposal
There is no way to moderate your risk. You either win by guessing right, or you lose everything you’ve bet. The sites that offer Binary Trading Options profit because their users have to win 55% of the time just to break even at the end of the day. This means you’d have to guess right 60% of the time or higher, just to make any real sort of profit. Since the trading is over such short amounts of time such as five minutes, you are capable of making multiple trades during the day. It is easy to lose track of how much money you are betting, and that is a drawback as well. But more importantly, you could make over a 100 bets in the day, and you have to win 55 of them just to keep your money, and 60 or more to make a profit, all based on luck since the market is extremely volatile over such short amounts of time.
In short, there are no winning strategies to Binary Options Trading, it’s all up to luck. But remember that luck has been designed not to be in your favor. If you’d like to bet on the stock market, then you may want to look into this more deeply. Gambling can be very enjoyable, though you may want to consider the fact that this betting is usually cycled through Cyprus and is largely unregulated before devoting too much of your time or money into it. But no matter what you choose to do, don’t be fooled by the talk of investing. This isn’t an investment, it’s a game, and it’s one that you will probably lose, no matter how knowledgeable you are about the stock market.