- 1 A Close Look Into Binary Options Trading By A Novice Trader
- 2 What exactly is Binary Options Trading?
- 3 Is Binary Option Trading Regulated?
- 4 Binary Options Brokers Serving US Traders
- 5 US Regulated Binary Options Brokers
- 6 Recognizing Binary Option Scams
- 7 How To Find The Best Binary Options Brokers?
- 8 My Experience As Binary Options Trader!
- 9 Conclusion to Binary Option Trading
- 10 Now let me answer the big question: Is Binary Option Trading Legit, a Scam or Gambling?
A Close Look Into Binary Options Trading By A Novice Trader
Initially introduced as Digital Options, trading in “Derivatives” has been around for quite some while. BINARY means “2 Values” and in the case of Binary Options it means “value UP” or “value DOWN”.
What exactly is Binary Options Trading?
Is Binary Option Trading Regulated?
Until 2008 there was no regulation of Binary Options Trading, which is now under regulation by the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) is a government agency that oversees the regulation of futures, options and swaps trading on regulated U.S. exchanges.
Binary Options Brokers Serving US Traders
For example: Banc De Binary Europe, by many heralded as one of the best brokers worldwide, had to cease serving the US market. The SEC & CFTC require Banc De Binary to register with their agencies and also to revise their “Bonus & Withdrawal policies”
US Regulated Binary Options Brokers
Recognizing Binary Option Scams
Until about one year ago, I was not aware of the Binary Option Trading industry. That changed rapidly when internet marketers flooded the web with products that, supposedly, will make you a million dollars in profits by trading binary option.
How To Find The Best Binary Options Brokers?
My Experience As Binary Options Trader!
|Date||Asset||Signal Time||Expire Time||Direction||Target Price||End Price||Result||Bet||Balance|
November 6, 2014: Trading four days and placing a total of 10 bets, I won ONLY two times and lost a total of $162.50.
Friday, November 7, 2014: A NON-TRADING DAY for me. I decided to take some time off of this “business” and watched a handful of very interesting tutorial videos to gain more knowledge about binary trading.
Consulted with customer support. Barb, a nice lady advised me to concentrate on USD/CAD and EUR/GBP and raise my bets to $50.00. Have to think that over though. Am I willing to take this risk?
Monday, November 10, 2014: Good day. Followed Barb’s advice, raised my bet to $50.00 and won both bets and received a total of $75.00 in return. Breathing a sigh of relief, I am planning my trading strategy for tomorrow.
Tuesday, November 11, 2014: Bummer! The USD/CAD bets cost me a Franklin. Not good, not good at all. What’s wrong with the software and the signals?
Reading more stuff. Something like “Intraday bias remains neutral and more consolidation could still be seen. But recovery should be limited by 1.13479 resistance and bring fall resumption“.
What does all this mean? “limited by xxxxx resistance“. Oh my, am I in this way over my head or what? I place another call to get some more advise from nice lady Barb. As my luck has it, a grumpy old buff answers. Tells me to hang in there and follow the signals precisely. Humph, THAT’S WHAT I DO…..follow the darn signals. Oh well, for sure better luck tomorrow.
Wednesday, November 12, 2014: One win, one loss…….but overall a $12.50 loss for the day and my bankroll is down to $300.
Thursday, November 13, 2014: Same result as the day before, a virtual tie but still losing $$$$$
Friday, November 14, 2014: I followed the signal and the signal was wrong, again! I HAVE HAD IT! 20 trades, 6 wins vs 14 losses by following a stupid signal. Or maybe I can’t read. Whatever it is, I am done with this game (for now at least)!
Conclusion to Binary Option Trading
Obviously, my experience was not a pleasant one. I lost $312.50 by following a signal that was more often wrong than right. But I cannot blame the computer for it. I know that software that can predict the “unpredictable” does not exist. This became clear when I read this note about “resistance”.
“Who is resisting what”, I asked myself. The currency is just a “thing” an cannot think, but the folks with the big money behind them, are the ones that steer currencies (and other commodities as well) in the direction they want them to go.
Just think about this hypothetical scenario for a moment. A fund manager with access to 1 billion dollars receives 1/2% commission from the capital gain the trades accumulate. Some time ago, he spent 500 million on Australian dollars, 80 cents for 1 AUD. He is now holding 625 million Australian Dollars and will sell the lot for 85 cents per AUD (making him a healthy $150,000.00 commission)
There are fund manager looking to buy AUD for their clients, but they resist the 85 cent offer. The AUD is hovering at 0.84075 and the buyers are willing to pay 84 cents. The seller also is resisting, for a while at least. The computer, unaware of all of this, follows the latest trends, which were UP and sends his signal.
John, that’s me, who has not read the book “Binary Options Trading for Dummies”, follows the signal. One minute later, the AUD seller does not resist anymore and sells the lot for 0.84050. He makes a little less than $150,000.00 commission, the AUD will follow the downward trend for a while longer, and John just lost another $50.00.
And so the story goes. This is just a little example of the little things a software program cannot foresee or predict to happen.
Now let me answer the big question: Is Binary Option Trading Legit, a Scam or Gambling?
- Binary Option Trading is LEGIT
- Binary Option Trading is NOT a SCAM (although some shady characters use it for their scams)
- Binary Option Trading is GAMBLING (and the odds are worse than in casinos)
I believe that people do make money trading binary options. I also believe that these people do not rely on a computer signal. These folks are traders with a lot of experience and excellent knowledge of the inner workings of world finances. Even they lose trades on a regular basis, but they have the know-how and the funding to overcome losses.
As far as I am concerned, I am done with Binary Option Trading. I just relax and keep on making money online as internet marketer. I learned how to do that at Wealthy Affiliate, the best online learning center in the world.
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