I would like some constructive FOR and AGAINST feedback for the choice I am about to make when it comes to trading,
what do I do Forex or Binary Ops
The strategies based in forex I think can be applied to Binary Ops, therefore why are you experienced traders not trading Binary ops, does it feel like just another Poker/gambling website, or do you enjoy the feeling when your technical analysis is correct and the PIPS go flying into profit?
Are they both not the same in principal, whereby the trader is predicting the direction or whatever circumstance to gamble on.
Is it the regulation around financial institutions not based in the UK but based in Greece that scares you off.
I am not trying to advertise binary ops but I would like unbiased opinion, before I change my plan of action from forex to binary trading. :56:
post update, I have just come of the Phone with the FSA as I am UK based and just uneasy about leaving my cash in another country where i have no ties and cannot even speak the lingo, anyway a Binary Options company thats hard on my tail to invest £500, gave me there FSA number. Now I don not want to scare anyone but, I have been informed that although the copmpany has been registered with the FSA and the CEYe cypriout chamber of commerce or something like that, so the company, IF they got into a sticky situation, basically does not have to honour or abide by FSA regulation they can revert to the cypriot regulations, which are sometime more laxed, hence companies wanting to trade from cyrpus and countries alike. now theres nothing wrong with our european brothers and their regulations BUT…
so thats my little bit of info, which now has made me want UK based brokers, so if anything was to happen, even if there in scotland thats 4 hours and I am at the door… .
Simple answer: just stick to Forex for now,
If you wanna bet on BO’s wait for the dust to settle as there is too much uncertainty in the latter industry.
Learn how to trade forex first and when you have achieved consistent returns you can add binary options, but do not believe the terrible advertising which claims no knowledge required. They can be used to hedge open position or for a number of other reasons based on the trader’s strategy.
You sure know how to search “Binary Options” and dump a link to that site in every thread here on BP.
How are binary options huge profit potential? You’re capped at less than 1:1 R:R. If you can devise a system with a high enough win rate to profit even when the edge is with the binary broker, then you can most likely find a way to make that system at least 1:1 R:R.
Binary options are utterly useless other than for hedging or arbitration. In almost every case of traders using binary options they would be much better off with spot Forex.
Like TheLastBear said, in order you to trade binary options you’ll have to learn how to trade forex first, because if you don’t understand how forex works and just going straight on binary options, that will be more gambling than trading.
Just go ahead with Forex, there are a few retail brokers offering binary ops, and yeah, you would need to research the lot out but for now, just stick with Fx…
I am of opinion that both carry the same risk given an intelligent approach and handling of the new trading instruments and possibillities that allow u to reach positions without taking drawdowns or risking stop loss due to draw down just before a up/down momentum…
This is my reply to a thread wether binary is gambling or not
Qoute
Well i have been trying to succesfully trade binary now for a year or so, i have lost in total around 1.500€ spreaded out over different accounts. The only one i put to blame for that loss is me, myself and i.
I had live accounts up to 6.000€ that sprouted out of a single 500€ deposit growing in a week or three- four and sometimes even in a matter of days. But my greedyness and lack of discipline in money management and most of all thinking i could trade at any given time regardless the hour and market condition made me blow my whole account every single time.
Is it betting? Yes ! But… its an equal bet and in my eyes a lesser bet % risk as opening a position of the same amount u would do in binary then in forex or any other market stocks indice… u take a call, long or a short put. U have exactly the same choices with exactly the same parameters to tweek then on forex.
If you dont believe me then keep on reading…
So if u argue about the fact that no one can forecast the market direction/position in time to come
…then my question to all the hardcore forex traders that refuse to study in the new oportunities this instruments give us to play the market…
think deeper about why woud u place those positions in any other market whilst calling options betting and your game ‘speculating’ or trading… remember u admit… forex/stock market … no one can 100% correct predict its outcome.
U forex traders that point fingers to the binary options are as big of a gamblers as the ones u assumingly point your fingers too. To this excent that most of the forex traders nowadays simply rely on signals and EA’s wich are all very unpredictable in behaviour + u need constant monitoring, and instead of putting the decsion to take a trade or not in your own hands, u put responsability on the machine afterwards. So what where you betting on while installing that indicator or EA? Or better said hoping/believing in? A robot that trades for u? everyone would be millionaire…
Nevertheless currency ecxhange and stock investments have been around from the moment the first roads or sea routes connected the ancient world. Spreads, shorting and options followed in the years after, tools created to allow outsiders to ‘speculate’ on the markets in any given direction. Speculating itselve is allready a form of ‘gambling’ but phrased in an intelligent way. Now let me explain u… in binary you can always ( with a good broker ) ‘open trades’ longer then 5min and with a longer expiry time those positions can be resold to the market at any given time ex. the last 6-7 minutes before expiry.
Meaning u can ‘speculate’ in exactly the same way as a classic forex trade,
u decide the entry point. oR when u enter the market.
u decide the stop loss and in the binary trade, the the stop loss simply is the amount of your ‘bet’,
unless u do an insured trade for 5-30% incase of OTM. But…
… u dont need more money then your initial bet to cover eventual drawdown while ‘speculating’ on a reverese !!
… u know exactly what u can loose or win and most important of all the re-sell before expiry to the market is
nr…
u decide when u take profit and execute its close at any given momentum and not 3-6 pips away from current position as in forex… and why would u always aim for the 80%-100% return on a binary option trade?
4 If u trade wise, u do not await the expiry time but u 'take ur profit once u have 50%-60-70% and u dont feel it going further up or down anymore.
…and for the record… 80-90% of the forex 'pips revenues i see in history of traders are not even 10-20% of the risked position, ok… the risk was covered by a stop loss, but that can be adjusted in the trade to allow further drawdown whilst ‘betting’ - or should i use ‘speculating’ on a reverse in the market before u draw down too far too feel good… is’t this an expiry time on itself? The stop loss in forex ? Yes and its the biggest bet on itselve,… how much will the market go down before you reach your goal position? Thats a bet u cant predict only guess for…
so it can be very well that a minute after opening a forex position the market makes a last reversal movement and rallys down 100 pips and u had a stoploss of 80 !!!
… Well there u have it, u missed out " again " on a perfectly do-able trade because two minutes later it shoots up again , bam to +220 pips and it would v hit ur take profit level… but it didnt… cause u have put your own expiry time / stop loss , " to secure your BET " let that be clear… based on the amount u were prepared to loose in this “BET”…
So please be honest and without prejudice about unfamiliar trading forms, and explore all new ways of using these trades in existing strategies, to cover losses or as extra tool to make money on exactly the same direction u were already hoping for. Why not make an EA that triggers a long term binary trade based on good analyses up or down with an expiry lets say end of day or till u take profit with your forex posotion.
Why not trigger reverse 1- 2 - 5 minute trades whilst your position is drawing down to cover losses or simply on top of your exisiting position semi or automatically done by the same EA that triggered your trade or by another one u create to monitor the ‘actual’ ongoing trade, then u start using another time frame to compare the market with, u use the timeframe of the ongoing trade, how fast its going up where it came from, where u predicted it to go etc… and it calculates 30 sec or 60 sec call or put trades that react on the movement on the market during your ongoing position…im only throwing a few ideas to look into. Why not use end of the day binary trades that are not sensible to drawdown limits to cover a loss trade due to a stop loss… etc… etc… i think it’s time to get creative…
i am really convinced and no i am not working for any of them lol… that after practicing well on a demo account, practicing mainly end of day and 15 min - to 1-4 hour expiry trades ( stay away from 60 sec ) and once u are getting familiar with it u have to study in-out of boundary trades that are very interesting and a specially ladder-trades that give u up to 800-900% profit, no bull**** i have made many succesfull trades like that on demo and my real accounts… it 's a simple break out …basically the same opening position u would take as when ur position reverses back or continues up from a breakthrough at the top or down bollinger just befor a fierce up/down movement. or reversal.
they allow you to quickly grow a 200-300€ account to 2-3000 in a matter of a week or two, easy! try to go for 5-10.000€ and put half of the profits in stocks, 25% in a forex account or bonds and the remaining 25% u open yet another account with yet another binary broker because they all vary in instruments / trades and u can profit nice extras that come lifetime with an account such as free signal or chartist software …
Even for beginning traders it’s a good expierience to get familiar with market directions and to learn making predictions based on technical analysys for the upcoming 1-4 hour end of day next day- timeframe and actally take a position while doing that without regard of a possible drawdown in the meanwhile. Like i said before if u are wise u put the expiry longer then the expected goal rate, 30min- 120-180 mins, u step away from the screen and u put your alarms that warn u when certian up or down positions are about to be reached and then u start monitoring the trade allowing u to take ur profit at exactly the right moment by taking advantage of the resell to market function. The average profit on a won binary in this case are mostly far above then those achieved in forex. Most of the good winning trades i see are avg 20-30 pips. U need a good spread to take a good profit out of that nd in binary u have minumum 60-80% return up to 800% on ladder trades which are basically predicting if a pair breaks through it reversal or resistance points within a predefined timeframe 1-4 hours… If u are a good predicting brake out/through trader in forex but you struggle with entry and exit positions or stop losses then it would be wise to look into binary ladder trades…
you would be surprised of the positive results, given the condition that if u would carefully execute and prepare that binary trade with the same attention and seriousness and based on the same tech analysyes…Its just a shame that bianry is not getting the same support and attention yet from the hardcore pro forex traders… or EA indicator programmers… There are sooo much different and variable ways to execute binary trades that open a whole new world of forex trading… because in essence it stays forex/indice trading. we trade on the same pairs and indices or stocks , and need the same insight to be succesfull, only now we get more creative playfield.
@b0bpip binary trade is literally a gamble, you might as well flip a coin to choose north or south…In FOREX you are still managing your own risk and strategies does apply, because you can HEDGE against losses and collect slippages.
i think binary is easier than forex ,it’s like playing binggo, just need to guess , if you are truely lucky ,you win big bucket ,
in the meantime , it is also much much much easier and faster to lose all your investment , anybody agree ？
I guess both forex and binary have their own place, many forex traders have a positive feed back about trading binary options however some preferred sticking with forex. I suggest visiting BabyPIPS school to learn more about Binary Options Vs. Forex. Its worth reading to all…
