Andrea Unger here.
And today I want to face a topic that sometimes leads to some arguments because it’s difficult to handle
– Binary Options.
Binary Options you will have probably listened
to some interviews of mine where I said that
I don’t consider them trading and I confirm
that I don’t consider Binary Options as trading.
For a number of reasons, so don’t come and
say that you want to trade Binary Options.
You can do it but don’t come to me because
I can’t help you and I don’t want to help you.
Binary Options is something where you bet
1 and if you win you go with, let’s say
0.85 win or something like that.
You get 1.85 and get 1 back plus 85, something
like that, maybe even 90 or maybe even more
in some specific cases but you will never
get something close to how much you paid.
So what does it mean?
It means that if you have a 50/50 chance of
guessing you are in a losing scenario.
It is not fair, if you go to a casino apart
from 0 you have more chances in red and black
actually, but, ok if you have two bets, one
you win and one you lose you go back with
15 cents less in your pocket.
Those who promote Binary Options state that
ok you are the trader, you know something
about markets so you will never go there with
a 50/50 chance of guessing or getting the
right direction of the market.
Because you know that in certain specific
situations support resistance, bond Japans,
whatever you can imagine, you have a higher
chance of 50% to know where the market will
probably be in the next x minutes, hours.
And that might well be true, I am not saying
this is false.
Let’s say you are an extremely skilled analyst
and you get out of 10 bets, 8 right outcomes
and 2 losses, only this scenario becomes a
winning scenario for you.
Congratulations this is fine and if you believe
that this is your way that is perfect but
again this is not trading.
What is the problem?
The problem is that today these binary options
no longer offer bets of a long period of time
but today you get any kind of time horizon
to bet on, minutes and think that when really
there is no clue about markets anymore and
in any case you are so close to gambling that
you might miss the borders and start getting
compulsive in this.
When you can have a revenge after a loser
just a couple of seconds after the first bet
then obviously you are pushed into the game
And you might start getting so addicted to
it then you go into a tunnel, into a direction
where you did not want to be but you are unaware
of getting there.
This is a dramatic scenario but unfortunately
it is true and you get sad stories in the news
about people who got addicted and lost
a fortune just because they could not prevent
from betting more and more, having the opportunity
to do so.
So as there are addictive games or gambling
scenarios which we are all aware of,
we must be aware that this can be one of those.
So, this is not trading, this is a sort of
gambling, if you want to be a gambler and
if you feel comfortable with Binary Options
I will not hold you from doing that.
You can do it and I hope that you will get
an awful amount of money out of it.
But don’t talk about trading because this
is more close to gambling, it’s not trading,
I cannot help you with trading, in solving
the puzzle of Binary Options.
Stay tuned more things to come! Ciao!
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