Yesterday, while I read a blog I saw some advertisements. The type of advert was one of those in which there are different products in the same banner.
The advert about finance said something like this: “three steps to change your financial life”.
As I am quite curious I decided to click to see what was “inside”, although I did not expect anything good. And, I was not wrong about it.
Binary options signal service
What I saw is one more marketing campaign promising absolutely amazing returns. And, the way for that was through a platform specialized in binary options signals.
The landing page contained an article and a video with a very happy young man saying how he made $13000 out of investment of $300 in just two months, following the tips of the service.
I do not know if the guy knows a bit about numbers or no. Probably the thousands of customers who buy the product do know, but they will not bother to calculate it and find out how ridiculous the offer was.
That is, the guy multiplied his account by 43 in two months.
If that rate was maintained for four months more, he would have about 24 million dollars.
First, why does that guy need to offer that product for money when he has a system that multiplies his account by 80000 in six months?
Second, do the buyers of that product believe they will make that sort of return?
Has the World gone crazy, or has it always been so?
I think that both of them: it has always been like that, but now it is worse than ever.
Binary options 80% winning rate
One of the funniest things in the video is when the guy said that his winning rate was 80%, but later he said that 90% of the tips used to be correct. In any event, those rates are surrealistic.
Nobody wins an 80% of times in the long run. The truth is that the winning ratio – the real one – must be close to 50%.
A monkey throwing darts will have the same chance of becoming a good binary options day trader.
Another interesting moment of the video is when the trader said that when he opened the account he won six or seven consecutive times and doubled his accounts. What means, this guy admitted that his money management was ridiculous, betting close to 20% of his account.
Knowing that binary options have an average of 80% payout, if we win six bets and double the account, it means the trader won 16% in each trader.
For that he should have risked 20% of the account.
Excellent risk management without a doubt!
I wonder how is it possible that great traders and experts say that you should not risk more than 1% or 2% of your account per trade.
It seems that Bruce Kovner traded very timidly.
Binary options signals robots
All this type of adverts comes together with a very suggestive sales appeal. In this case, it was trying to catch the attention of its main public, young and medium aged men. And, the best thing for that is the car of your dreams.
Besides, the platform seemed to be free. So, they want to make us believe that we are going to get rich with a free signal service.
Binary options signals free?
But, as everybody should know, there is no such a thing as a free lunch. After all, the developers and the broker employees have to eat.
The binary brokers are bet houses in the strictest sense.
They are made to win every day.
Hundreds of traders multiplying their accounts by 50 in two months?
From where will the broker find the money to pay them?
The sad reality is that that platform is nothing more than an aggressive marketing technique designed by unscrupulous people who only want to make money by the commission they get from the broker referrals (1). And, the binary brokers are those who pay best since they know that the ratio of losers is 100%.
In other words, money you deposit there, money you will never see again.
If you want to get rich trading binary options, you should build up a web like that and sell signals. Mind you, it would be in the knowledge that you would be lying and swindling people.
- Knowing that the referrals were based on lies.
Thanks for reading and sharing.