Should I invest in Binary options?

Invest easily in binary options

Lately it is quite easy to find how good and beneficial investing in binary options is.

We can find it in any kind of advertisement in any web, including when we research for futures. Yes, futures. And when I searched for that term – which has nothing to do with binary options really – I got many promoted adverts from binary options brokers.

Investing in binary options

The truth is that the concepts of investing and binary options are quite excluding, as well as it is with “invest” to CFDs or Forex. Although we can buy currencies for long term investing.

Binaries are like betting in 0s and 1s, but paying quite a big spread

For example, someone who thinks that Spain is going to go out the Euro might exchange his euros for francs, yens or dollars.

That would be a long term investment.

However looking for four pips a day is not investing whatsoever.

That resembles more something like gambling.

In that regard, the so called binary options investment is nothing else than “bets on binary options”, for that is what they are.

How to invest in binary options?

A professional gambler would probably never choose those assets.

The probability to win in the long run with a payout of 85% after, for instance, 500 bets, is so low that it is not worth even trying.

There are other instruments much more efficient like futures, which are extremely better to binaries when compared.

The problem with futures contracts is that they are not recommendable for small investors or traders due to their huge size and the impossibility to try proper money management.

Although, the best way to trade futures is not day trading but swing or trend trading, which makes money management even more difficult.

When we approach binary trading and its one minute bets we should never compare it with futures.

 

Advise to invest in binary options

Those who claim that it is easy to win in binary options is a lie as big as a castle. It is even very unlikely to win at all in first place.

Binary options are the last cheap invention of the day trading crowd to cheat people out of their money.

Unfortunately there are millions of people who fall for this trap year after year since those who start their “investment” career are easy prey to this kind of things.

After a very short time, most of them will have learnt that it was not investing what they did.

In fact, to find the real mystery of real investing you have to go to long term time frames.

It is in those timeframes where the binaries fail miserably due to the fact that they are designed purely for the day trading community.

For what I have seen until now, the conditions for long term bets are very bad. Hopefully they will change this someday.

The payouts of binaries for many days or weeks are in most cases worse than that of 15 minutes ones, which normally are around 85%.

Invest in the stock market with binary options?

What I have seen for bets that last months is closer to 70%.

With those conditions not even the best speculator in the World could win doing swing or trend trading.

When you risk 1.000 USD and pay 300 in commissions straight away seems quite difficult to win.

Do you understand what I mean?

That is why a professional gambler will never try those kinds of markets.

Although I have to admit that the videos promoting binary options are very funny.

What is sad is that many years ago, when I lacked the necessary experience I would have easily fallen for this kind of product. To learn investing in a “proper” way, I suppose.

I even saw people recommending doing martingale strategies with this kind of asset as the secret method of winning in these markets.

Those guys said that if you doubled your bet every time you lost you would eventually win. The problem is that when you are in the wrong side of a long bull trend you can have dozens of failed trades, one after the other.

The fact is that the markets do not always “rebound”.

Although Martingale is not only used in binary options but also in other kind of markets like Forex, futures or CFDs.

That is not the right path for a trader, obviously.

Would you consider playing in a casino a sort of investing?

Obviously not, what can be said exactly for binary options which functioning do not differ much from that of the casino.

Good trading.