Hello guys, I just registered here in order to reply to this post that I find pretty interesting. First of all I started to learn how to trade, by myself, 3-4 years ago on FOrex, Futures & stock. So i learned everything from scratch and Im now able to read charts and recognize patterns, and get a feel from the market by lookin at the charts. So far so good, (not only good, got wiped a couple times in my learning process) then recently I found out about BInary Option... I never was into it since I was trading Forex/Futures and that's just what I was trading, after a wipe, my investment capital was quite reduced.. so it led to Binary trading.
In my OPINION, and my Experience, and I am trading the binary options now, you cannot trade the Binary Option the same way you would trade any other assets on on futures or forex or stock. I realized that you have to follow a certain counter trend strategy in order to maintain a certain positive gain/loss ratio.
First of all, I never follow the Signals that is provided by the broker on an asset. % of puts and calls... Simply because if you gotta understand that the Brokers need to get their money, and also to understand that Option leads the market. If you are familiar or have some experience on trading Binaries, you probably noticed that it's quite possible to expire Out of the Money, even if you were trading in the right direction... and I also noticed that on i.e: 15 minutes option timeframe, on the very last stretch of the option, 3-2-1 minutes, you will see a big move against you. That is probably due to a Block trade. For those of you who knows about block trade, it's easy to see that this IS where the broker makes it's money.... if 60% are call and 40% are puts, that block trade will most likly go lower, therefore closing 60% out of the money and only paying 40% In the money.
That is why I never follow the "traders choice".. because it's most likly the "brokers choice" he wants you to follow the trend so he can take your money. That is obvious if you have a proper understanding of how Market works. Maybe I am wrong, and please enlighten me, but I think this is a pretty accurate view of what going UNDER those %...
On this, I'd be more then happy and willing to discuss about trading strategie for this type of market. Remember that there's no scams(..well you know ), just scheme, and people calling out to scam are most likely people who had bad experience when it comes to trading... there's even people calling Forex/futures/stock trading scams, but again I think it's just due to poor DD from their end and lack of knowledge on how the market works. ...this is The Market after all.. gotta know what you're doing!
I wish the best trades to all of you, and hope to read you!