There is a small issue with respect to binary options that I realized long time ago.
The truth is that I realized that the great majority of binary option brokers do not offer demo accounts, something quite unusual in the world of derivatives.
The fact that it is so unusual might have to be with the fact that binary option brokers are not very interested in people trying their products and seeing that they are actually quite difficult to master.
Then what is the problem with binary options demo accounts?
Binary options demo account?
As far as my opinion, the duration of a binary options account is very short, being one of the markets with the highest death rate.
In other words, people do not have their binary accounts for a long time.
Some people take just a few hours or days to blow up their accounts.
This is the problem I see with these markets, and I think that the brokers of that sector prefer not to give the option of demo trading to the potential traders so they could see how “quick” they would lose the money.
Binary brokers tend to pressure the customer to open the account as soon as possible, with small accounts with some sort of bonus or crazy story of how to do “4,000 extra dollars a month”.
I would say that less than 30% of binary options brokers offer demo accounts.
It would be very easy to offer them, especially for such a synthetic market, not more than for CFD or Forex trading.
I mean, if CFD and Forex brokers offer demo accounts so easily, why do not the binary options do so?
In any way, we have the possibility of visiting brokers pages and make bets in situ, since we can see their quotas in live.
This is what we should do and I recommend to anyone who wants to practice in the binary options world.
If you cannot open a demo account simply get an excel sheet and start doing fictitious trades with any strategy you have so you can get your own conclusions.
Remember that Jesse Livermore was many years observing the market without trading. Besides he was writing trades and movements during one year before going full blown.
We should take note of those lessons.
The majority of traders who do this will eventually see that they will lose more than half of the bets.
The world of day trading is very dangerous for the wallet of the trader, whether it is futures, stocks, CFDs, Forex or binary options.
If people take the time to do a sort of virtual trading before opening the accounts they will save up a lot of money in many cases since they will realize that trading is not as easy as it seems.
Others will open accounts anyway although they lost in the demo accounts; however there are always stubborn people everywhere.
I know it is difficult not to believe that we are the “best” especially at the beginning when we are novice.
It is difficult approaching to this world and not thinking that “easy riches” are close.