Online brokering has been made it easy for everyone with enough money to become a broker. Online brokers either trade Forex or binary options. To those who had downloaded my e-book ‘’Your online Marketing Guide’’ you must have read many pages on online brokering. In this post, I will share with you some of the reasons newbie should not adventure into binary trading.
Before getting into this what is binary trading?
According to this top binary trading site Banc De Binary ; Binary options is a new investment venture that anyone can use to easily profit from the price movement of a wide range of dynamic stocks, indices, currency pairs and commodities. Traders just have to predict whether a currency or commodity will increase on decrease in worth. If the prediction is true, you get high payouts (more than 80 percent profits) based on your investments. Over the past years binary options had become popular than FOREX trading because of the high payouts they offer to traders.
When you join a binary site the thing you get most is how to invest and how much you will make. Usually you will see make up to 85 percent of your investment. Newbies usually get moved when they see figures doubling. Most traders need to be equipped with trading tools to help traders trade better. This is lacking in most sites trading binary. The big traders know where to get such charts to use. As a newbie, you will just be observing and clicking which makes it terrible.
2. Meeting Dishonest Brokers: As some someone who wants to make residual income, it is frustrating when you put money in the hands of the wrong person. Since you don’t know how stock varies, some plat forms will manipulate their software to give you results opposite to your predictions. Some binary trading plat forms charge you when you deposit, charge you when you withdraw or even make the withdrawal process difficult such that you will earn up abandoning your earnings.
3. You need more education than you think: Many people get into binary options thinking it is simply as it is presented. There is a trading psychology you need to develop before getting started. To do this you need to meet some big names in the trading industry, read books, practice, watch videos how to use charts among others. It is not get 95 percent pay out as you think. You need to learn the tricks, the ups and the downs of the game before getting in. If you just dive into it, you might end up testifying losses.
4. No way to get back what you have lost Binary option is a computer based brokering where you only predict. You cannot purchase any stocks or currencies which you can sell to part of your investment if stocks are down.
You lose all when you prediction is wrong and gain big when your prediction is correct.
5. Binary option as Gambling
This does not mean you cannot make money. My point is you cannot be sure money will always come from this source.
This means if in the first prediction you won 8 dollars and in the second win overall you have loss 2dollars from your initial investment which should not be the case. This makes your risk more than your reward. How will it look like to adventure into a business where losses are more than profits?
Binary trading is simple. This should not make think is easy to go by and make cash because simple does not really mean easy.
Before saying good bye, I will like to you to get an idea of what Forex trading is. Most newbies still think it is the same with binary trading.
Forex (foreign exchange) markets or plat forms are markets where that are opened 24/7 for the buy and selling of currencies .It is different from the stock market where commodities and others are exchanged. Forex systems are thus Simple with a narrow focus compared to binary options Here trading is more variable with the trader being able to control his risk, losses among others, Overall we see that Forex does not have a variety of products compared to binary options . This gives the business more feasibility than binary options.
Making money online require you to keep focus with a clear action plan to make thousands, million and even billions of dollars depending on your objectives. It is important to understand every business you want to get into especially the risk aspect. I believe this write up will reshape the thought of those still new with online marketing as well as clarify the doubts of existing online marketers. Never be in a rush. If you are new into online marketing, I recommend you take about 6 months to understand what binary options is all about before getting in to it if you are interested.