Another Look At Binary Options

 

 

Is binary options a real form of investment? The answer you get may depend on who you ask that question. Binary options is becoming increasing popular as a way of earning money. However, the potential for earning comes with an equal risk of loss.

The concept of binary options is rather simple. The price of any asset can either go up or down within any given time. The investor will attempt to predict the direction that the asset will go, and if in doing so, will earn an amount that is roughly equal to the amount he or she has invested.

It is therefore binary in nature because the price may go up or down, and also because the investor could either win or lose his investment.

Most People Lose Their Investment

Perhaps the reason why this has become so popular (or notorious) is that most people – around 95% - lose their money. They often come into binary options after seeing YouTube videos of people who turn $10 into $3000, and then they think that they can easily do the same.

The reality soon hits and they lose several $10s. They then become eager to dissuade family and friends, telling them that binary options “is a scam.”

If That Is True, Then What Else Is A Scam?

The stock market: analysts have said that up to 95% of participants in the stock market lose their money. That sounds like a scam in any book. Some have said that only insider traders have any real chance of making a lot of money from the stock market.

Of course, some have also been lucky, and so have made a lot of money from sheer luck. However, sheer luck is not very sustainable, and besides, this kind of luck only happens as a rarity, which means that very few people ever get to benefit from it.

This brings us right back to the issue of 95% of participants being luckless.

The crypto market: this is a relatively new market, but it is already established to be following the age old cycles of booms and busts. In fact, many economists believe that the entire crypto market is a scam – one big economic bubble that is going to end in a historic number of suicides.

The many traders and investors who have lost their hard earned funds to crypto may tend to agree. Some have timed their entries wrongly, while others have invested heavily in crypto projects that have turned out to be rug pulls.

In any case, crypto is just as bad as binary options, and so is forex.

The forex market: this mostly resembles binary options because the same brokers who offer trading in forex, usually offer binary options. Furthermore, the same assets are offered to traders in both binary options and forex.

The forex market already gets enough bad rap so it is not really necessary to say that many consider it a scam. Depending on who you ask, you may hear that 80%-95% of traders lose their money.

Nevertheless, there are a few successful traders. They can be found all over social media, and many of them offer mentorship classes. They offer real proof of their trading so that people can actually see what they have to offer.

Anyway, the consensus is that even though forex trading is quite risky, with training it is possible to trade it successfully.

So What About Binary Options?   

The problem is that there are fewer success stories in binary options. There are too few people who come out to say that they have spent years trading binary options. There is very little research that has been done in this field of investing.

Without this research it makes no sense to say that something is a scam. The ideal thing is to do the research, and then come to a conclusion. Presently, it looks as though a conclusion is being made without the due research first.

Binary Options Is Risky

About 95% of market participants lose their money. That is as dangerous as anything can get. It therefore seems that this is not the kind of thing that a complete novice to the world of trading should get involved in.

The call should be to those who have spent years in the business, and who understand the way the markets work. It is to such like ones that the responsibility falls to find out the truth about binary options, and to decide if it is something that can become a job.

Anybody who has interest in trading binary options should therefore first spend the time learning how it works. Research is the key.

Do not become enticed by the shiny buttons on your screen, and think that you can make tons of money just by clicking “buy” or “sell.”

The bottom line:

Was this post designed to tell the world that the stock market is a scam, or was it designed to tell people to take a closer look at binary options as a kind of investment? (Shrugs) Maybe a bit of both.

For the sake of emphasis, it is important to point out that this article calls on the need for research. Please do not jump into trading binary options, or any other form of trading for that matter without doing your due diligence.