Hey there Londoners, I am Eli your local Locksmith here in London Ontario.
Today I am going to talk about something you all heard and maybe tempted to try called online trading.
Online trading comes in many forms; you can trade Forex, Stocks, Commodities and more.
One of many ways to trading called Binary Options, which will be my subject for this article.
Today I am going to talk about something you all heard and maybe tempted to try called online trading.
Online trading comes in many forms; you can trade Forex, Stocks, Commodities and more.
One of many ways to trading called Binary Options, which will be my subject for this article.
We often see Binary Option adds online but not many will share the truth about them. What are the risks, what the chances are and who is the money maker here?
When you type Binary Option in Google, you're going to see many ads and companies trying to get your attention, some with a 50k demo account; some with quick daily profits in a few steps.
Once you sign in you will be swamped with calls to register and account and obviously deposit funds.
Some companies won't even give you a demo account, claiming there is no need for one because it's "too easy".
When you type Binary Option in Google, you're going to see many ads and companies trying to get your attention, some with a 50k demo account; some with quick daily profits in a few steps.
Once you sign in you will be swamped with calls to register and account and obviously deposit funds.
Some companies won't even give you a demo account, claiming there is no need for one because it's "too easy".
Here's what I know:
In most cases you can start an account with a minimum of $100, with the minimum trade of $25.
There are different ways to buy options, but I will only touch one called (UP/DOWN) or (HIGH/LOW)
This means if the price will stay above the current level or below the current level at the expiry time of the selected option.
Your return in most cases is 85% on your money if you were right.
If you were wrong you will only get 15% of the invested money back. Some companies return less if you lose but give more % if you are right.
There are different ways to buy options, but I will only touch one called (UP/DOWN) or (HIGH/LOW)
This means if the price will stay above the current level or below the current level at the expiry time of the selected option.
Your return in most cases is 85% on your money if you were right.
If you were wrong you will only get 15% of the invested money back. Some companies return less if you lose but give more % if you are right.
The risks of trading Binary Options:
1 - Lack of knowledge in market trends - It's easy just to click and gamble but the luck won't last forever, the need to win on the other hand does.
2 – Temptation and rush of the gamble – which is always against us. Millions of people lost their homes, cars and lives because of gambling, and so can you.
3 – Uncalculated risks – traders open too many trades; assuming they have more trades gives them more chances to win. Wrong! Proper money management is the key to success not only in trading but also in life!
4 – Impulsive trading – opening a trade because you're mad or upset, or desperate to make money. Basically like anything in life, impulsiveness leaves you empty handed.
5 – Misleading information – opening trades relying on suggestions online. There are many "analysts" online who cannot recommend whether to buy or sell the asset but they can definitely talk about the current trend. You will make your conclusions on how to act accordingly and with poor experience your decisions might be wrong.
2 – Temptation and rush of the gamble – which is always against us. Millions of people lost their homes, cars and lives because of gambling, and so can you.
3 – Uncalculated risks – traders open too many trades; assuming they have more trades gives them more chances to win. Wrong! Proper money management is the key to success not only in trading but also in life!
4 – Impulsive trading – opening a trade because you're mad or upset, or desperate to make money. Basically like anything in life, impulsiveness leaves you empty handed.
5 – Misleading information – opening trades relying on suggestions online. There are many "analysts" online who cannot recommend whether to buy or sell the asset but they can definitely talk about the current trend. You will make your conclusions on how to act accordingly and with poor experience your decisions might be wrong.
Avoiding scams
Ok so let's say you're an expert on global economy and your financial skills are great. On top of that you're not planning to invest a lot, mostly just to have fun and "check it out".
What now? Which company do you choose? How do you avoid scams?
1 – Google each company to see if there are any negative reviews about it and read those reviews. People tend to overreact with the fact that they lost and blame the company so make sure you read the reviews that make sense like "I am trying to open a trade and the platform keeps freezing".
Look for reviews of customers that did get paid in spite of the problems.
2 – Don't get temped for big "bonuses"! You can't withdraw them anyway. If a company offers bonus, mostly 10% or 15% on your deposit will be enough.
3 – Test the company's withdrawal process by withdrawing a small amount to see how fast they deal with your withdrawal. (Make sure you read the terms and conditions regards to withdrawals)
4 – Make sure you speak with the sales representative. Prepare a list of questions, once finished confirm his answers online.
What now? Which company do you choose? How do you avoid scams?
1 – Google each company to see if there are any negative reviews about it and read those reviews. People tend to overreact with the fact that they lost and blame the company so make sure you read the reviews that make sense like "I am trying to open a trade and the platform keeps freezing".
Look for reviews of customers that did get paid in spite of the problems.
2 – Don't get temped for big "bonuses"! You can't withdraw them anyway. If a company offers bonus, mostly 10% or 15% on your deposit will be enough.
3 – Test the company's withdrawal process by withdrawing a small amount to see how fast they deal with your withdrawal. (Make sure you read the terms and conditions regards to withdrawals)
4 – Make sure you speak with the sales representative. Prepare a list of questions, once finished confirm his answers online.
My personal opinion and experience:
Most of the companies rely on you to lose. That’s how they make their profit.
The companies know that most of the people are inexperienced therefore they promise easy and fast learning which will make you an expert. Some may even teach you through web seminars but you won't become an expert unless you have a lot of money to lose.
You can definitely play a little bit and enjoy the rush but when it comes to second income you need years of experience. On top of that you can't rely on one company, once they see that you make a lot of profits weird things start happening. Suddenly your trades don’t go through or suddenly you get a different market price on opening and this affects your trading. You get angry, you start losing.
Think twice before you deposit and read the small letters!!!
Most of the companies rely on you to lose. That’s how they make their profit.
The companies know that most of the people are inexperienced therefore they promise easy and fast learning which will make you an expert. Some may even teach you through web seminars but you won't become an expert unless you have a lot of money to lose.
You can definitely play a little bit and enjoy the rush but when it comes to second income you need years of experience. On top of that you can't rely on one company, once they see that you make a lot of profits weird things start happening. Suddenly your trades don’t go through or suddenly you get a different market price on opening and this affects your trading. You get angry, you start losing.
Think twice before you deposit and read the small letters!!!
This article is not a recommendation, the written content is a personal opinion only and does not refer or recommend on any investment and/or action made by the reader. The reader is responsible for his own actions and conclusions by reading this article.