Open a general reviews webpage and you will find people reprimanding this viral investing trend. Some traders call it an option that could make you lose practically everything you put into it. Some of them accuse the Binary Options Platforms of fraud and illegitimate manipulation. Many others have complained of being lured into absolute scams where trading accounts have absolutely no bearing in the actual market. So many negative feedbacks would naturally tip you to stay put of the sham that has seemingly sabotaged genuine investments. On the other hand, there are those who claimed to have initially gathered bonuses and returns rewarded by their brokerage firms. Whose word do we then rely on?
Let me tell you a story. Once an adult, enthusiastic about trading decided to buy binary options on an experimental basis. After signing up with a suitable platform, he began to roll. The first deal, successful as it was, gave him a kick and the impression that he was now one among the league. With increasing interest, he skimmed the current market trends to follow up and waited to strike at the stipulated time frame.
His predictions were steady initially, but soon he began to miss the mark with fractions, here and there. This lead to losses in deposits and subsequently, the collateral began to slide. He continued to pitch in, investing more and more in the process to cover up for the earlier losses. The binaries that promised ‘all-or-nothing’ began a landslide of disinvestments. The investor became panicky and then decided to withdraw completely from the scheme. The broker, on the contrary, had a different take on the whole situation: it advised him to continue trading till the bonus was pursued. The ‘snakes and ladders’ scenario continued for a while till the collateral depleted.
Following the market alone will be inadequate for binary options trading. What you really need to do is study the phenomenon thoroughly before you opt for it. Apart from having prior knowledge regarding the basic concepts, you many need to learn tricks to strategize your investments. Without a binary options strategy, you may have nothing to fall back on. It is important to be aware of the pros and cons of this trade. Once you have gained enough confidence in theory, finding a reliable source putting your knowledge to practice is extremely crucial. Avoid reverting to baseless brokers that attempt to allure you purely on the basis of high returns.
Financial experts and seasoned traders apart, how many of us really know how to play this game? Recently, the internet has opened up to promote a plethora of brokers specializing in this form of trade. Their goal is to provide a binary options platform to traders as possible. For this to work, the mere provision of the ‘all-or-nothing’ option is insufficient. For those who are absolute beginners in trading itself, the absence of perks would make it rather dull and hence the chances of dropping the game altogether. The technicalities of the trade, the strategies needed to be incorporated and other requirements may go above our heads- what really matters is the returns and particularly the bonuses we would possibly derive from it.
How it works
I happened to try my hand in it. The absolute beginner that I am, a great deal of pre-grinding was required to understand a great many terms. The only thing I was acquainted with was the term ‘binary’, which I had learned in school. Finance not being my forte was out of my comfort zone for a while. To understand what binary options meant, I had to first study terms such as ‘put’, ‘call’ and ‘strike’ among other things. Thanks to the blogger mania, I came across a number of sites that put up readymade examples about the pros and cons of this trade. This seemingly simple means of investment has a great many underlying complex factors that determine the whole act.
Know the inside stories
The overall show depends on our stroke of action and luck. The brokerage platform I had opted for gave me all that I needed to know. What I had to do next was study the market carefully and ‘strike’ for the underlying asset within the stipulated period of time. Here I had two options- to make a ‘call’ (buy), or opt for a ‘put’ (sell). This is where I made my first mistake- the blunder of not studying the options properly. Governed by the reluctance of my very first investment, I had pitched in for the out-of-the-money option.
Once the trading closed, I discovered that the returns did not match the likes of what the research articles and the broker’s website had truly promised. This really put me in a soup because for a stock price of $29, all I had managed to make was a mere dollar! Luckily after calming my nerves, I went through the entire procedure carefully to learn about the kind of investment I had primarily opted for. Lesson learned: Do not invest unless you are absolutely sure of what you are investing in, and how!
Welcome to the world of urban investment- the IT revolution hits its all time high as it steadily progresses towards money making platforms for its users. Manual banking and non-banking investments in stock or gold among other things are slowly retreating to the bygones. The click-and-begin techie surfers are more inclined towards investment portals that promise instant returns and bonuses. I for once, was eager to give it a shot myself- to test the authenticity and reliability of these platforms.
With some prior knowledge regarding this form of trading, I began with comparing strike prices provided by various platforms. Next was to register with one of them and commence trading. The web portals make the whole procedure very simple for its users; I simply had to select the ‘call’ or ‘put’ option based on my own gut or prediction. The swiftness with which your deposit gets manoeuvred into the whole act is a sight for sore eyes. Ironically, if the strike is made on a prediction that goes even slightly off tangent, the soreness returns with a depleting binary options platforms account balance.
Know more details
My initial investment was a strike of a genius. On my very first attempt I managed to gather $100 out on a relatively lower deposit. This lured me deeper and deeper into the cycle of bidding and striking.
The amount of time and money spent in just arriving at the strike is lost on me. It was only when I began to splurge on the binary options indulgence than the realization dawned on me that a downfall would not lead to a neutral outcome- there would be actual losses incurred as a result of constant over-investment to make up for the previous misses. This taught me to put the beast of addiction on a leash and trade, if at all, cautiously and less frequently.
Life is more or less about ‘giving it a shot.’ Try as we may to take complete control of the situation, the persistence of fate or chance can never be denied. Something similar can be said about investing in Binary option platforms. This trading method for its simplistic approach has gone viral in real time, so much so that more and more people are found opting for this rather addictive and engaging form of investment. It is as thrilling as a bet on racecourses or cricket matches, a game of poker, or a mere swing of a slot machine.
The experience that i would like to share
Every one of these compels us to eventually resign to fate, no matter how passionately we bet. The ‘all-or-nothing’ means of trading gives a similar feeling of intrigue, anxiety and excitement, thanks to its core ‘you-win-all-or-you-get-nothing’ approach. The idea of this game is to bet on whether the underlying of an asset (interest rates, indices etc) at a pre-determined price and a fixed expiration time will remain on the higher or the lower side of the strike rate.
Taking part in it
Only recently, a friend of mine decided to try her hand in trading. With the view to start off simple, she began to skim through trading methods to zero down on a means of a less demanding nature. Of these, she found the binary method most gullible; all she had to do was select a suitable platform, start up an account and begin trading. The website she opted for bore a list of brokers with their collaterals, bonuses and returns specified in the form of a chart. She now had to select a broker to begin with the actual process.
Every investment demanded a fixed initial deposit; the idea is to reap bonuses with every trading move along with the returns specified prior to the trade. Alongside, my friend had the advantage of reading up a quick review of the broker she was investing on. One of the self-help websites advised her to invest on something that gave her maximum returns. The firm she opted for gave her bonuses depending upon how deep her investment was: 30% bonus for a $200 deposit, 40% for $1000 and 50% for $5000 in different packages (Standard,
Executive and Gold). The website had a plethora of pages with well-researched articles based on trading strategies and the know-how. Apart from the basic concepts such as put or call trading being covered, there were terms such as Candlesticks and Trend Lines being explained. With all the options placed before her and a guide book to rely on, she was now ready to get in the loop!