Before I got to know about MT4 I traded binary option and lost a lot of money. Will not recommend this type of trading and believe me I had a lot of training.
I enjoy MT4, SL, TP, BL,SL, more control over entries and exits. This type of trading is more structured, binary options are more related to a lotto ticket with numbers being drawn in the next 15min.
Remember trading is a business!
People, I think some of you are overthinking this. Binary options IS fixed odds betting. Nothing more nothing less. FOREX is variable odds betting nothing more nothing less. Now this statement could raise alot of eyebrows but its the simple truth.
Every gone into a casino and played roulette? You sit at the table, place a few bets, win a couple, lose a couple but hey youâre up so Iâll place a couple more bets and whammo, you lost your purse! Thats how casinos win. They get you to stay n play. Ever been pissed off at the punter who comes along, watches the table, makes his move, wins and leaves. Thats cause he knows that the only way to bet the casino is to get in and out. No different to binary options. The broker knows that the longer you stay n play the greater the chance of you losing your kitty. So if you want to trade binaries then learn a lession from the pro gamblers. Watch the markets, wait for the trade, make your profit and run. Run for the hills cause if you stay n play youâll loss it all.
Now with that said, what do the binary option brokers do with all that money sitting in their clients account. Well they dont let it sit there and do nothing. They invest and make alot more money. And they are collecting a hell of alot of market sentiment data from each n every trade so they are better placed to make informed trade desicions. So they can double dip their profits making a nice fortune.
So if you decide to go binaries my advice to you is to hit n run cause the bank wins in the end. And for those of you interested I have been a binary convert for the past couple of months
I have been trading binaries since last year and while I do not agree with your gambling reference I do agree with your hit and run statement. I only place two or three trades per day and (especially) if I get two trades right for the day I am done. Itâs a nice way to earn some extra cash. Those who keep trading will end up the day with losses in most cases.
Bro, its all gambling. The difference is binaries are a fixed odds bet but forex is variable. When forex traders talk of risk/return they are talking variable odds. However we are educated gamblers and take educated risks. Facts are no matter what timeframe or currency pair, statitics show that there is a 50/50 chance of the pair being up or down from the reference point. If one is prepared to call a spade a spade then its a lot easier to win at the end of the day.
But we do agree and this is the best advice we have to anyone thinking of trading binaries, get in and get out. Take the profit and run. And to all you forex traders you are gamblers too. Please, its not a bad thing. Just look at it from a fresh perspective. There are a lot of professional gamblers out there. Horses, dogs, blackjack, roulette, two flys on the wall. Its the posion we choose to drink. All the best to you my friend and all the best for your trades
Regardless if we agree or disagree about the gambling part, the main message is what I hope binary option traders will take away from this discussion. I actually use binary options to fund my forex accounts.
I agree about the hit and run tactic. The problem is that some brokers (specially the big ones) make it very hard to withdrawal your profits. Currently Iâm trading with optionsxo since so far they are the best broker I found when it comes to withdrawals, they never delay any of my withdrawals requests ever. Other brokers have many excuses why they will have hold your money and in the time you are waiting they start to add huge spreads to your trades. So the hit and run tactic isnât always as easy as it soundsâŚ
The solid brokers do not give you a problem when you request a withdrawal, those who do you should not be trading with.
Correct. however, about what [B]bobbillbrowne[/B] said, I donât really see why there is such a fuss made about comparing binary options to gambling. I, for one, am perfectly happy with binary options being called betting, because I do not find it demeaning in any way. Successful betting takes commitment, time, practice, experience, and only then, luck.
Never met a successful gambler that wasnât extremely, even painfully dedicated. Just like the successful and rich businessmen I know, actually, exactly like them!
You will never hear a âproâ betting man (by âproâ I mean he/she earns enough to make a nice living) say: âmmmm, that one!â. They know exactly when, why, and what to bet on!
Itâs like that movie, with Matt Damon, I think, where heâs playing poker, and everyone is pointing fingers and calling it a gamble. To all of that, he replies something like: "How come every year the same five guys make it to the world championship finals? What are they, the five luckiest guys on the planet?"
So, instead of trying to fight off the parallels made between betting and binary options, we should actually focus on the fact that betting is a serious business, not dumb luck. And so are binary options.
I think you summed it up pretty well. In the end it does not matter what others call it as long as you are successful with it.
Exactly. A quid from betting isnât worth any less than a quid from âreal tradingâ. Even trading on traditional markets (I mean in early 20th century) wasnât considered âreal tradingâ. Today itâs one of the most highly regarded professions.Knocking down new things is just human nature. And, Iâm not talking about anyone specific, I myself have had to overcome the âfear of the newâ many times.
What is interesting to me, is that calling binary options gambling and betting is supposed to mean that itâs bad? Iâd rather be a successful gambler than a mediocre trader any day!
I totally agree. I keep telling people to stop caring what others think. In case you make your money betting on horse races keep doing it. Who cares how you make it. Same applies to trading strategies, never listen to others. As long as it works for you keep doing it. Your strategy is designed to generate profits for you and not to please others. Nice discussion guys.
This statement is good when we are making some profits but what about the situation when we are only making loss. Then we are intended to listen to others and try their strategies in hope to get profits.
I agree with shanza & TheLastBear - If you have a strategy that gets you profits - keep it no matter what other might say. Once you strategy gets you loses - itâs time to find a new one.
What i like a bout binary options is the fcat that you can tell if your strategy is good very quickly!
Well for many people, they think it is some sort of scam, but seriously when you think it about, why would it be a scam when the house has such a huge edge built in?
Like the poster below refers to a 75% payout if you win your trade, but a 100% loss if you lose. That is pretty standard. Now just like when you are taking a trade that you think is going to go Up, there is somebody on the other side of that trade thinking it is going to go down. Your broker, puts you both together and takes a commission for his efforts, which is the spread.
Now with a Binary Broker, it is in his interest to have as many traders as he can, as there will always be traders thinking an asset is going to go up and those that think it will go down, all he has to do is accept the trades and he is in a perfect arbitrage situation, provided that he has the same amount of trades on either side. He is getting $100 from the losers and paying out $75 to the winners and pocketing $25. 25% that is the stuff dreams are made of and will make you RICH.
Of course if he has too many traders on one side of a trade, he is putting his own book at risk. You have to think of these brokers more like Bookmakers now. So they have to constantly keep balancing their books and if they get too much exposure on one side, then they will have to lay off some of that risk.
Now all the traditionalists will jump all over this and say âsee it is just out and out gamblingâ
But honestly, when we donât know what the outcome of something will be, but we think that we know the answer because of some analysis that we have made and then put money on what we think the outcome will be, hoping to increase that amount by being correct and losing it if we are wrongâŚ
Well isnât that the very definition of gambling?? And what every Trader is doing on every single trade, every minute of every day???
Donât let anybody tell you different my friend, when youâre trying to predict the outcome of something for monetary gainâ and run the risk of losing that money if you are wrong, you are GAMBLING.
The only difference between those that show a profit and those that show a loss, is how good they are at predicting outcomes by their own analysis, some money management and a good old pinch of luck.
Now if you had a spare $100k laying around and were thinking of âtradingâ it, wouldnât it make better sense to get yourself set up as a Binary Options Broker or a Normal Forex Broker and just cream off spread or arbitrage from degenerate gamblers.
After all, being a Broker is a Business, that has proven returns, limited downside and can be sold as a business when you are tired of it or have made your money and âtradingâ is gambling that will produce a few spectacular winners, a few just holding their own, but a majority of losers, just like we see it does. Pure and Simple.
Hello.
Look (and let me be âfrankâ here) (and NO: I no longer ârepresentâ Deltastock AD BUT because of my past association with them, which was only terminated VERY recently as in âjust this past weekâ, Iâm posting simply as a trader now until my OWN companyâs FSB registration has been approved):
Thinking or believing that your broker (a Binary Options Broker or any other type of broker for that matter) is NOT profiting from YOUR losses is âpie in the skyâ and a âdreamâ. ONLY when it comes to the REAL BIG brokers (mainly US brokers) are the brokers making money PURELY on the spread and commissions charged. Your âaverageâ FOREX and CFD (or Binary Options) Broker is ALWAYS âtaking the other side of your tradeâ. YOU WIN: they lose. YOU LOSE: they win. Itâs really that simple. The âstatisticsâ are in their favor (even MORE so than than casino statistics). Alright and to be fair: SOME (reputable) brokers will âtake the other side of your tradeâ and, if their risk reaches a certain level, theyâll âoffsetâ such risk with a larger broker (liquidity provider). All theyâre doing is âhedging THEIR betsâ is all. Now to get back ON topic (Binary Options Brokers): the odds of a trader LOSING is WELL in their favor. Not to mention the âtoolsâ that they have at their disposal to âmanipulateâ the options (thatâs another entire topic of conversation). The fact of the matter is: YOU OR I could simply open a FOREX, CFD, or Binary Options Brokerage with NO capital AT ALL (other than the cost of setup etc.). Chances are: MOST of our (your) clients will lose money (and our or your profits made from such losses) will âcoverâ those that are INDEED making money or are profitable. Itâs really just that simple. People tend to forget that FOREX trading (and Binary Options Trading) is NOT the same thing as it was âin the old daysâ. In âthe old daysâ one would simply pick up the phone, call your stockbroker, tell them to buy or sell a certain instrument (stocks, commodities, FOREX futures, etc.) and the broker would simply make their profit based on a certain percentage of the TRADE VALUE and their commissions. This is NOT the case in THESE âcirclesâ. A broker (be it a FOREX, CFD, or Binary Options Broker) DOES have the âoddsâ âstacked in their favorâ and itâs as simple as that. All of this being said: the fact that a broker DOES INDEED âtake the other side of your tradeâ does NOT mean that theyâre âtrading against youâ (the proviso being that theyâre a REPUTABLE and HONEST broker). But let me say this: letâs just SAY that YOU and I formed a Binary Options Brokerage. Regulation aside: there is NO doubt in my mind that we WOULD make money from client losses (statistically) and those client losses would BY FAR exceed the amount of money that would be required to pay out the âwinnersâ. Itâs REALLY THAT SIMPLE. So: if you have, or know of anyone, that has around $100 000 USD at their disposal and wishes to âmultiplyâ such investment by (who knows) one hundred fold??? Letâs talk. I am SOOO sick and tired of what goes with this âgameâ that I now want to âpukeâ. Fact of the matter is: if YOU YOURSELF had the wherewithal and the funding required for advertising and promotion (thatâs the BIGGEST cost of all) then YOU could open your OWN Binary Options Brokerage (regulation aside although regulation means NOTHING either i.e. itâs merely âwindow dressingâ i.e. because a broker is âregulatedâ does NOT mean that "when the âsh*t hits the fanâ that youâre going to be alright in the end and itâs merely a âmarketing toolâ is all). Here in South Africa: weâve had two MAJOR âinvestment schemesâ go âtits upâ and BOTH were SA FSB regulated. Where were the Compliance Officers (whose responsibility it is to CHECK, on a MONTHLY basis, âwhat is whatâ) and where were the auditors??? People lost MILLIONS of ZAR. So what good was their âregulationâ??? ALL it did was âfoolâ the public i.e. âoh: this company is FSB regulated so Iâve nothing to worry aboutâ. The ONLY âsecurityâ that you have is when you ENSURE that your funds are âcoveredâ by some or the other âinvestor compensation fundâ. Other than that: regulations and regulatory bodies mean donât mean anything.
So in closing: it really doesnât matter WHAT type of broker youâre dealing with (Binary Options, FOREX, CFD, Equities and Commodities) it REALLY doesnât make ANY difference whether theyâre regulated or not. If the regulators donât have heir thing together well, then, âyou takes your chancesâ is all and in most cases this is true i.e. brokers are more concerned about the FINES and their supposed âgood nameâ than they are about getting âfuc*edâ and being forced to close down by their regulators than they are about ACTUALLY adhering to the terms and conditions as laid out by their respective regulator). My only advice to you: listen to âhear sayâ. If a GENUINE trader is making money at a certain broker then âgo for itâ. Iâm the FIRST one to admit that Iâve been âbanging onâ about âregulationâ but, you know what, at the end of the day, it doesnât count for anything. If the OTHER âbodiesâ are not âdoing their jobâ youâre STILL in trouble e.g. if the Compliance Officers or Auditors are not âsharpâ or are not âdoing their jobâ then youâre âat a lossâ (no pun intended). OF COURSE: if things go bad you can SUE. But letâs be honest here: unless youâre talking about MILLIONS of USD you stand NO chance and it simply wouldnât be worth the time, money, or effort (and brokers âCOUNTâ on this).
So there you go. Binary Options or not. BEWARE an BE AWARE is all Iâm saying.
Regards,
Dale.
Whoa Dale⌠that is some serious pent up energy coming out there!
I canât comment on what you said (from lack of experience) but I can comment on reading between the lines.
While we will all heed your advise, well I will anyway, and I love the passionâŚbut I think you need a holiday!
While you are waiting for own companyâs FSB registration to come through, pack your car, drive down to Durban, walk on the beach and watch the sun set with your partner.
I think you need a time out!
Yes Dale
I quite agree with that. That is my point basically.
You go on about Regulation, well that is exactly true as well. Take in the US for example, MF Gloabal, huge brokerage that went into clients segregated accounts and just plain stole the cash that was in them. Has John Corzine event spent a day in jail for outright theft? Has he even been charged?
How about PFG Best? Bernie Madorff? the London Whale?
No the list goes on and on.
Did read about a trader in China, who traded over his allowed position. Guess what happened to him? He got taken outside and shot to death, so if your looking for account security, probably better off banking in Hong Kong or mainland China.
Anyways, the point is, you places your money, you take your chances, but really, if you had a Binary Brokers that had a good name and loads of traders saying how good you are at prompt payments and good customer service, then why rock the boat, when you have a good thing going? At least 25% arbitrage positions going on all day long and you donât even have to become a dealing desk yourself. Almost pure arbitrage.
What seems to be more the case is those brokerages, acting as dealing desks and then getting onto the wrong side of trades and next minute it goes from bad to worse (like any losing streak will more often than not kick you when you are down!) and then getting what is their equivalent of a margin call, which is when the traders now want to withdraw their winningsâŚand there is no money to pay them. Then it is off to the segregated accounts as in MF Global.
No, there are no guarantees, that we are in agreement of. Prepare for the worst and Hope for the Best and donât leave more money than is required lying around in your trading account.
BTW, I am also a SAF. Cape Town.
The best way to make sure no one is stilling your money is to keep it in your bank account - not in your trading account. I withdrawal my profits every week, Iâm doing it only because Iâve already burned in the pastâŚ
Hello.
You donât know the HALF of it!!! LOL!!! Actually: I was being NICE in that post!!! LOL!!!
What âdid itâ was that last week on Talk Radio 702 they were talking about all of this and I could not BELIEVE the excuses that were being made FOR these fraudsters BY THE PUBLIC no less. And at NO point in the one hour conversation with some or the other âexpertâ on these matters was the FSB even brought into question. My guess is this: in this country and if you have enough money and the right contacts you can get away with murder (or fraud). I know what it takes to register with the FSB (this is now the second time that Iâm having the âprivilegeâ of âgoing through the inane motionsâ). Lil 'ol me is required, for example, to appoint and pay a Compliance Officer and that Compliance Officerâs JOB is to come and âcheck me outâ every month and they charge exhorbitent fees per hour which, of course, Iâm going to have to pay. And believe me: if I so much as âlook in the wrong directionâ theyâll âcome down on me like a ton of bricksâ and they are required to report any âwrong doingsâ to the FSB immediately if any type of fraud is even SUSPECTED. So if that applies to ME: then how did all of this OTHER âstuffâ happen (NOT to mention, by the way, that the two âschemesâ to which I was referring were PUBLIC COMPANIES and REQUIRED Auditors).
And httbop ALSO makes some good points where he mentions those other brokers (forgot about them actually). But yeh: in the USA one would expect regulation to be âtop notchâ. Well: weâve seen the end result of THAT too have we not.
Anyway: Iâm CALM-ER today!!! LOL!!!
Regards,
Dale.
You are suppose to listen to Highveld radio and not 702.
You should get to work in a better mood, especially with SA traffic.
Glad you are CALM-ER today though