Trade Binary Options – Introduction
Google the term trade binary options and you will see the results that come up. You will see a number of sponsored pages and a number of websites providing binary options reviews. The latter will provide ‘in-depth analysis’ on different binary options brokers. Binary Options are provided by hundreds of online brokers. They allow a person to open a trade predicting whether a certain ‘asset’ will go up or down within a certain amount of time which could be as low as 30 seconds. In this article, I will explain a few reasons why you should not trade binary options. I am however in favor of trading the conventional methods of trading the options market. In this article, I will highlight a few reasons why you should never trade binary options.
#1 – Gambling
They might tell you that binary options is a way to trade the financial market. The truth is that binary options has nothing to do with the financial market. This is because no one can accurately predict the direction of an instrument in the next 30 seconds. The only person who can do that is a gambler. The fact is that even in a bullish chart, the chart will never go up in a straight line. There will be points of pullbacks. Therefore, you should not gamble with your money. Instead, if you are interested in making money in the financial market, try other ways such as trading the different assets that exist.
#2 – Dark Industry
Another reason why you should never trade binary options is that it is a dark industry. In the websites I mentioned above, you will find reviews of many companies. However, the fact is that the reviews are never accurate. A good example is a company called Banc De Binary that has received hundreds of positive reviews was in 2014 fined $11 million by United States authorities for operating in the country illegally. In addition, hundreds of companies offering binary options services are illegal and have no authorization to operate. It is also very hard to trace the physical locations of these companies. In fact, there are so many binary options scams that have been identified.
#3 – Better Options
The next reason why you should never trade binary options is that there are usually better options to make money. The allure of making money fast using methods like binary options has led to many people going bankrupt. If you are interested in making money from the financial market, you can try the normal trading. If you are good at it, you will never regret. For a disciplined investor or trader, the amount of money you will make at first is minimal to what you are promised by the binaries. However, in the long term, your success will be much better than the binary options. In fact, in binary options, you are assured of losing money. Companies such as Day Trade the World help you become a better trader and make realistic returns.
#4 – Emotion Control
In normal trade, its usually very easy to control your emotions. In fact, it’s easy to close a trade that is not doing well. Also, it’s also easy to put in place a stop loss and take profit to control the amount of money one can make or lose per trade. All these tools are not available when you trade binary options. Therefore, it’s not easy to control your emotions when trading binary options.
#5 – Tools
When trading, tools such as technical indicators are very important. They help you make the right trading decision in terms of forecasting. In normal trading, the brokers provide you with tools to help you make this decision. For binary options, these tools are not available. Therefore, you should avoid trading in a market that is not transparent enough.
Trade Binary Options – Useful Links
- Read more about trading binary options on Investopedia
- Discover the basics of binary options on Opteck