Hi all – great site, great forum – pleased to have the opportunity to join in and post my first comment.
I came across OptionBit after I saw a site that offered a free options trading strategy. Am I allowed to post the URL here?
I won’t for now just in case I breach protocol on my first attempt.
Suffice to say a “former London stockbroker” has managed to give up the rat race without having to give up his $20k a month salary by trading binary options.
I smell a rat #1 - his strategy is to follow the “Trader Insight” window which tells you if traders on the site are net long or net short of each pair. The site provides you a hint as to whether you should be going long or short of your chosen market.
Now, if you lose a trade, you place another trade on the same pair, but multiply your stake by approx 2.5; so effectively a Martingale incremental plan.
Using $10 as a first trade, your subsequent trades would be $26 - $65 - $150. So if your first trade was actually $100, you are looking at a sequence of $260 - $650 - $1500. Strewth.
I smell a rat #2 – I quote from the ex-stockbroker’s video where he is describing the incremental plan - “your last trade is pretty much 100%, so it’s totally risk free trading”.
What the heck does that mean?
So I am with those people who see this as pure gambling and not trading. Nothing wrong with gambling per se, as long as you understand and accept that’s what you’re doing. But what makes this marketplace seem all the more seedy is sites like the one I described above, and the huge offers of cash incentives if you deposit funds before a certain time limit (OptionBit’s site actually says “It is not advisable to start with less than $500”). Wonder why?