I am not sure I agree that trading binary options is easier than trading forex. There are traders who do very well trading them.
Trading binary options is much more simple than trading forex BUT it doesn’t mean it’s easier to make profits in the long term. In both cases you must do a lot of homework before you can start making real profits, but the trades are much easier with binary options without any doubt - you just choose direction & amount - it get any easier
Simplified like that the same would apply to forex trading as well. You pick your pair, direction, volume and that’s it. The thing is that binary option brokers try to advertise themselves as being very simple. The main difference is that if your option expires only one point in your favor you still get 70%+ as a payout where in forex one pipette on the same investment would be much less in profits.
TheLastBear - I agree with you
All you need is 1pip, that it win or lose
If your still interested in binary options trading you need to know the truth about binary options trading
it is sad to see that binary options have found it’s way into babypips,
please all who is new and interested into finding out about binary options,
let me tell you right now and let this be the end of it,
these so called binary options brokers are all fraud and scam outfits,
if you use your brain and think about it, it will be very clear to you,
I will explain it all to you and how they work to rip you off,
they made it look really nice saying its possible to make 80% or 85% or even 95%
on a single trade, this is what makes it look so profitable but this is nothing but a deception for your eyes,
first let me tell you who are new to options how “real” option trading works and why it is lightyears better,
real options are contracts based on different time periods, there are many different periods that you can chose for your investement, lets say from february to mars, or february to december, options decrease in value over the course of time, and at the end of the period, they will expire, if price has moved nothing during this period, your investment will be worthless at expiration, in other words you would have lost 100% of your investment because the value decrease over time,
when you made your entry, your position is worth 100% at the first day of the period,
and at the expiration day its worth zero% this is if nothing happends and the market is going sideways during this time, however if the market have gone up more than your entry price at the expiration you will make a bundle,
and if its not, you would have lost it all, this example is just to show newbes how real options work,
ofcourse there are many strategies you can use more than naked calls and puts that can allmost guarantie you profit,
but I will not go into that here. in the regards of money management trading options is ideal,
because the money you enter with is your risk the same way that you would use a stoploss in forex or shares trading,
so with options, you would enter with lets say 2% of your capital on a single option trade, if you loose,
it will be the same as you where being stopped out, you lost 2%, ok, enough of that,
now let me tell you about risk to reward,
if you enter a trade you should make sure that you can win atleast 2 times the amount you stand to loose,
this is because all trading is a game of probability, we never know in advance if we will loose or win,
so using this concept is a must if you ever want to become profitable,
now when you know that, let me tell you how the binary options scammers rip you off,
and I will tell you why it is impossible to be a winner in the long run trading binary options,
it is like a casino rigged against you from the very start,
dont believe anyone telling you they are profitable trading binary options,
they are either affiliated with the broker or damn liars, PERIOD!
these binary options brokers claim you can win up to 95%! on a single trade,
that sounds really good doesnt it? but is it really true? no!
what you can win 95% of is 95% of your traded amount in a single trade,
wow that is a huge difference, so if you enter with lets say, 100, the maximum you can win " on this single trade" is
drums , 95 more, that isn’t even 1:1, not even brake even, you remember about how important risk to reward is?
if you trade any amount, you would want to make alteast the doubble amount back if you win, 2:1
but these binary brokers doesnt even let you win the amount you entered with,
so every trade you make you are risking more than you stand to win,
this is the brokers promised 95% for you, it’s ringing a bell yet? and on top of that,
if you dont win, you will loose 100% of your investement,
this makes it impossible to win in the long run, it is designed to slowly eat your acount away.
it’s nothiing but a casino, hell, you stand a better chance at a real casino!
ps, if this post will be deleted I will make a dedicated website about this matter,
and I will make sure to write babypips deleted it,
binary options is the filth of the trading industy praying on new innocent investors, bewere!
we need to build larger prisons to put these bastards in.
Hi
I would like to learn to trade binaries please. What can I do? Thanks