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 wins 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 revenge after a loser just a couple of seconds after the first bet then obviously you are pushed into the game even more. 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 then perfect. 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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