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Binary Options Are Binary Options Safer than the Stock Market?

Discussion in 'Binary Options Forum' started by Sparky, Feb 6, 2015.

  1. Sparky

    Sparky Member Founding Member

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    BY JACOB MASLOW ON FEBRUARY 5, 2015
    STREET INSIDER

    [​IMG]

    Usually, when people think of binary options, they often think in stereotypical terms. The stereotype of binary options is that this form of option trading is gambling. From several articles that were recently published, it appears that this is the consensus among market observers.

    Unfortunately, this is far from true. If you are to look at binary options from a cost benefit and risk analysis perspective, in many instances, it makes for a safer bet than stock trading. Think of it this way, if you’re going to be trading in stock, unless there’s a lot of volatility in the market and in the particular stock you bought, most of the time, you would be trading sideways. If you get in at $20, chances are you probably would have to wait quite a while for you to make 10% if that. Why? For the most part, the stock is just inching along up and down for a long time. It’s trading sideways. There’s lot of opportunity cost involved. You could have invested your money in other things for that amountof time you waited to get your 10% return. Moreover, that 10% return is never guaranteed. There are no guarantees in the stock market. This is why for the life of me, I can’t understand why people love to dump on binary options.

    Binary options give you only two outcomes. When you buy a position in a stock and bet that it’s going up or going down, you only have two outcomes. This completely vaporizes the prospects that you would have to wait and wait and wait as your stock trades sideways. You maximize your opportunity cost.

    Moreover, if you are studying a stock very carefully, and you study the general market trends, it’s unfair to say that you’re simply gambling. If you put in a binary option position on a particular stock because of its recent patterns, you are far from gambling. Chances are you have a big chance of calling the right direction for the market.

    Most importantly, binary options enable you to unlock a lot of the potential gains of the stock market. Instead of having to wait several weeks, if not months, to get a 10% gain, you can get upwards of an 85% gain off your investment in a single day. In many binary option platforms, you can even get that gain in a few hours.

    Whether you’re looking at time advantages as well as return on capital advantages, binary options have a lot to offer. Still, you can lose your principal if you call the market wrong. This is really no different from other forms of stock investment. The only difference is the timeline. You can lose everything with stocks if the timeline is stretched long enough. With binary options, the return window is shrunk so you can get an 85% return or not. However, the risk window is also magnified. Keep that in mind. A lot of people think that just because these are the key factors of binary options that these two factors alone make binary options a bad choice for everybody else. If you fit a certain risk profile, and .you’re okay with how binary options work, by all means, explore it.

    Jacob Maslow
    Jacob Maslow is our Editor, and has extensive experience with writing about global financial matters.

    Source.
     
  2. Trader

    Trader New Member Founding Member

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    Occupation:
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    I agree that Binary Options trading isn't gambling. I would say
    it is what you make it. Unfortunately most people make it gambling
    because they are too eager to make money before they even know how
    to choose a broker. They rely on scam services and lose money taking too much risks
    with small accounts, thinking it's all a game.
    I have talked to newbies who didn't even know you could use charts for analysis, not to mention
    risk and money-management. No wonder why so many are losing money!
     
    Mark V likes this.
  3. mightymike

    mightymike Member Founding Member

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    i would definitely like to learn more and you seem to know your stuff!

    you mentioned in the other thread that we should educate ourselves about binary options before jumping in. binary options definitely intrigue me, so do you think you could help with "educating" us gamblers as to how to get into binary options? maybe start some threads on 1) strategies that you've used successfully, 2) how you manage your risk, 3) tips on money management to make sure you never lose too much, 4) how you analyze charts to give you an edge, etc etc. , and things like that? it doesn't have to be all at once, obviously.

    i'm a total newbie when it comes to binary options but they intrigue me so i'm all ears and would love to learn from someone who knows what they're doing and has been successful at it. what do you think? i hope i'm not asking for too much! feel free to say so if i am, no hard feeling!
     
  4. Trader

    Trader New Member Founding Member

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    No, this is what I am here for!
    In time I will add more info, but please be patient because
    I have loads of work to do with my own websites and other websites
    I write articles for about these subjects you mentioned. However, I will
    do my best to share valuable info here and educate the members as best I can :).
    Btw I answered your other post in the other thread, some good info to start with.
    Jacob mentioned a few good points above too!
     
    mightymike likes this.
  5. mightymike

    mightymike Member Founding Member

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    awesome, i really look forward to reading your threads and what you have to say! thanks for doing this!
     
    Trader likes this.
  6. Mark V

    Mark V Active Member Lineage to Founders

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    Occupation:
    Gambler, bikini contest judge, and lounge rat
    Location:
    Las Vegas
    I also trade Binary Options, and have done well.

    First, only trade on a Regulated platform!
    Second, learn to read candle stick charts.
    Third, understand the market you will be trading in. Understand what are the major movers in that market.
    Lastly, don't be hasty for profits or start playing around because you are bored. Don't chase your losses either.

    Binary options can be a casino if you treat it like one.

    Many people make a fabulous income just working 2 hours every morning trading Binaries and ETF's.
     
  7. rongarm10

    rongarm10 Member Lineage to Founders

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    Does anyone in here trade binary options in the Forex Mkts.? I have never traded in the Forex Mkts., and of course never traded binaries. Would enjoy learning both, but not necessarily at the same time. Just sayin.
     
  8. Trader

    Trader New Member Founding Member

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    No, I just trade binaries as they are much simpler.
     
    Mark V likes this.
  9. kenneth warren

    kenneth warren New Member

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    Occupation:
    Binary options trader
    Location:
    UK
    I make use of the money management strategy which involve me using a trade calculator software which gives me 98 signals everyday which lifts my trade to 78% and gives me a win of $350 everyday with the minimum amount of money invested in my broker account($250) and $2575 weekly. This are not mere words because I have proofs to it, am here to teach whoever is interested how i make it this big trading binary. Mail at If you are interested in knowing how I make it big
     

    Attached Files:

  10. Trader

    Trader New Member Founding Member

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    Don't listen to Kenneth above. Him and similar people are the typical scammers in the world of BO.
    Just trying to get your email address and make you sign up with some broker or by some scam software.
    That picture is from a demo by the way.
     
  11. Mark V

    Mark V Active Member Lineage to Founders

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    Occupation:
    Gambler, bikini contest judge, and lounge rat
    Location:
    Las Vegas
    Well, www.forexpeacearmy.com is a good place to check out any broker as to how legit they are. As a rule of thumb, any broker who are located in the seychelles islands. marshall islands and Cypress should be avoided!
     
  12. Trader

    Trader New Member Founding Member

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    No, that's not true. Many companies register their offices in Seychelles and Cyprus due to low tax rates.
    Cyprus is in the lead when it comes to binary options regulation. I would say; trade only with regulated brokers.
    CySec regulation for example.
     
  13. Mark V

    Mark V Active Member Lineage to Founders

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    Well, these so called Regulatory agencies in some of these countries are 'in name only' and provide no actual enforcement, validation or oversight at all. I have heard to many horror stoires of people being ripped off, scammed and out right lied to by online casinos and Binary/ForEx trading companies that are located in these countries.

    Sure, there may be a few legit ones, that is why I suggest to go to the forexpeacearmy.com to see what others are saying before you make your deposit.
     
  14. Trader

    Trader New Member Founding Member

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    It is not about just being located in those countries, they have to be regulated too.
    Actually, you CAN complain to the regulatory authorities in case something happens.
    There are lots of people currently trading with the big and regulated brokers including myself.
    I always get my withdrawals and there are no problems.
    As I said in a post before, always check a reliable forum before you decide to pick a broker. I didn't
    give a link because we are not allowed to promote websites here as far as I know. Forexpeacearmy is a good webiste
    but NOT for binary options. They are great for getting info about Forex brokers mostly.
     
  15. watson7tyler

    watson7tyler New Member

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    Well binary options are different from stocks, bonds and mutual funds; even so, they are quite simple to understand. Instead of investing in a particular company (i.e. Microsoft, Google, Facebook, Exxon Mobile, etc.) a person who invests in binary options is essentially betting on price fluctuations in the price of particular options.
     
  16. Trader

    Trader New Member Founding Member

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    Sorry for the late answer but here you go:
    http://www.financemagnates.com/binary-options/regulation/cysec-fines-ez-trader-operator-e340000/
    http://www.financemagnates.com/fore...s-broker-tdoptions-gets-fined-50000-by-cysec/
    http://www.binaryoptionsthatsuck.com/top-news-regulators-blacklisting-brokers-and-suspending-others/
    There is more, I do write news articles from time to time and regulators are getting much tougher so
    you are wrong about them being useless. You can find more on Financemagnates.
     
    Mark V likes this.
  17. optionruler

    optionruler New Member

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    Without training it is gambling - If you do not know how to trade clicking up or down for no reason is basically gambling.

    Always try to get a free training session or learn on your own and remember it is very risky.
     
    Mark V likes this.
  18. Christopher

    Christopher New Member

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    If u want to earn oodles of profits in binary option tradings, dont waste your time on lame systems/ techniques. I am writing because i do love to help my fellow traders who might still be struggling in the binary option market, and if i can help you win more trades, then i will. you may wanna use the address strickert.c at yahoo dot com
     
  19. Clayton Robert Hogan

    Clayton Robert Hogan New Member

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    There are several Binary trading options companies that promises you to increase your profit, after searching you will see plethora of trading firms. Their staff looks professional and legitimate and they claim their platform as risk free platform. After you manage to grow your balance and decide to withdraw your money then these so called legitimate platforms refuse to answer and allow you to withdraw few amount claiming that the remaining are bonus and can be withdrawn once you trade for certain number.

    Here is an example if you grow your amount to £14,689 then you will allowed to withdraw only £689 and the remaining £14,000 will be bonus and the money can be accessed if you trade 30 or 40 times that amount.

    My soul purpose is to aware you about these scammers and give you a simple stat: Firms like Wealth Recovery international recovers assets worth US $1.5 million from the fraudsters companies.
     

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