Shoeaholic No More



April 2015



Why You Shouldn’t Use Binary Options

Written by , Posted in Mindful Living

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ID-100241511-300x199Do You Think You Can Make Money by Being a Casual Trader? – Then Don’t Even Bother Trying Binary Options, You’re Guaranteed to Lose

Most people know next to nothing when it comes to trading binary options (or any other forms of trading, actually). After all, this is a relatively new form of trading, and most of us are just starting to hear about it for the first time.

As with most new and hot investments, binary options trading has caused quite a buzz in an investment world dominated by hopeless fanatics of get-rich-quick money-making schemes.

But, before you go off spending your life’s worth trying to become an overnight millionaire through binary options, you should know one or two things about this type of trading. Unfortunately, you will end up realizing that binary options is most likely not a worthwhile investment for you, or for any discerning person seeking to make money by trading the financial markets for that matter.

Know Thy Enemy (Broker)

Know thy enemy. Much like knowing who your Joneses are, knowing who your enemy is (your binary options broker) can help you make better decisions. These simple words from one of the most quoted military leaders in human history best describes the grim underlying relationship between you and your favorite binary options broker.

Your intentions may be to get as much money from the markets as possible through your trading skills, and your binary options broker may do a terrific job of convincing you that they want the same for you, but you are in big trouble if you believe this to be true even for a second.

At the very heart of it, a binary options broker is ultimately interested in your failure at binary options trading. If you can still frown on such a claim, then you are better off not investing a penny in binary options trading because you simply have no idea what you are up against.

At the very least, you need to put off your binary options investment plans until you understand how brokers make money. Ultimately, what such a research will reveal is that you are pitted against calculating financial institutions that are betting against you in binary options trading using odds that are stacked in their favor.

It’s More Than A Chance That You Will Fail; Its Practically A Guarantee

The odds you have to overcome in your attempt to squeeze a profit from every dollar you invest into binary options trading are well thought out by the broker long before you make your first bet for or against an asset’s price movement.

Brokers do not leave their ability to turn a profit to the chance, as most traders do. They have put several measures in place to ensure that things go their way. Since it’s you against your broker, you can be assured that the odds are against you every step of the way because you are playing by your broker’s rulebook.

The point here is not that it is impossible to make any money by betting on the price movements of financial assets through binary options trading. It is just that you need to understand everything your broker is up to.

First, you have to understand that your broker has to make money. This is why the average trader has to lose money for the brokers to stay in business and be content with the fact that some traders will make consistent profits at their expense.

Being Just Average Will Be Your Undoing

Nothing reveals the true curse of being average better than financial markets trading. With binary options trading, this is even more apparent. Essentially, if you think you are average, do not even bother being a binary options trader – you are doomed to fail.

Most people will fail in their misguided endeavors to make money through binary options trading. In fact, less than ten percent can honestly claim to have even managed to hold to their initial investment capital. The proportion of those who make it to a profit is even smaller.

Do you think that you can make money by just being an average binary options trader? If so, do not even bother trying out this form of trading. The average trader is guaranteed to fail.

The novice, below-average trader will even lose his/her money much faster. You have to be exceptional to even hold on to whatever you put into your account as capital, and that says just how bad your odds of consistently making a profit as a binary options trader truly are.

Therefore, binary options trading might not be the investment you thought it was, your efforts are better off directed to alternative investment channels.

Have you ever used binary options?

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Kayla is a mid-20s single girl living in the Midwest, USA. She is focused on paying off her consumer and student loans, while simplifying her life and closet. You can join her on her journey at ShoeaholicNoMore or follow her on Twitter.

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