Binary options are considered by many as a bet because there is a 50/50 chance of winning. However, as binary options are based on the stock market, there is a large amount of information and a large number of tools available to traders who want a technical advantage and increase their chances of winning.
In addition, the stock market responds to various news, economic releases, government policies and other information that enable smart traders to have an even greater advantage. Basic analysis is a very popular approach to trading.
In this article, however, I will present an argument not for technical and basic analysis but for something quite opposite, the players ’approach to binary options. So if you are a player playing roulette, poker or any other game where the odds of winning are the opposite, you may be the perfect customer for a binary option broker.
Why? Because players are still returning and this fact is also the basis of the entire industry. The more you play, the more chances you have to lose. The continuation of the game is a necessary factor that casinos or binary runners never take for granted.
A fantastic return for an operator managing an investment portfolio in a respectable investment company would be an annual gain of 16%. Even 12% is considered excellent and most individual investors would benefit from the opportunity if these benefits were ever guaranteed. They usually aren't. Of course, there are leaders who can sometimes reach 300% of profits, but repeating this type of success every year would be nearly impossible.
Let us briefly examine why even 12% per year is a good profit for a top binary option brokers 2017. There was this huge Ponzi scheme run by one of Wall Street's most respected brokers, Bernard Madoff, whose notorious funds promised an annual return of 11% and there were a number of investors with plenty of money to offer. Any trader who regularly trades in the stock markets will say that there are good days and bad days and that is the nature of the beast.
Given that 12% is a very good annual profit for an operator, it may be logical for someone who is a player to exchange a lump sum in a single operation that generates approx. 12%. In Forex, this will be a significant market move that can last a day or even a week. If you had to choose binary options, your risk would be higher, but your rewards would be much faster and also much higher, 75% or more.
Of course, trading all or most of your capital in a single operation is against all solid money management rules. One of the basic rules of trading is to invest a maximum of 2% of your investment capital. Investing 50% in a single operation is considered a really bad or honestly irresponsible money management.
Personally, I think your commercial approach will largely depend on your circumstances in life and that there are people who prefer to risk everything in one or two operations. Some do it in a hurry, and others do it by necessity, but binary brokers offer bargains at $ 10,000 for a reason.
If you have $ 10,000 and need more money quickly, you could in theory perform a one-minute operation where you correctly predict a movement of EUR / USD prices and earn 75% of the invested amount, $ 17,500, making Your $ 7,500 is richer in a minute. The opportunity is simply astounding, but on the other hand, if you lose trading, you will lose all your money, so not $ 7,500 and $ 10,000.
If you invest a lump sum in a single Forex transaction, you can reach 12%, which we have shown is a good annual profit, but if the price move moves toward you, there is a simple way to secure your capital and limit your loss to $ 500 by placing stop loss. In this sense, Forex is simply safer than binary options.
Now, if you go to a casino and put all your money in red in the game of a roulette and you really want the metal ball to stop in red, you would bet with no other perspective than hope. Don't take this kind of approach to trading or even a roulette in a casino. Be a player who enters a casino establishment and stands first at the roulette table and see what happens. Count the history of spin results and calculate the probability before placing bets, because that's the only way to win with odds.
No comments:
Post a Comment