My experience with binary options. This article is the first of a few Binary Options articles based on my personal experiences and professional knowledge. These articles are styled as little stories, little upsetting things that could happen to any trader, all exaggerated of course, but true as well. Each article is devoted to a different kind of trader.

My experience with binary options


My experience with binary options. After years of wasting my time on unprofitable means of making additional income, I knew there Binary options trading was indeed the most beneficial type of trading for those who have little to no experience in the financial trading market and want a simple solution that can easily earn them £ from.

My experience with binary options

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Binary Options - Has anyone had any experience or success? What are my other options? Now I've done some research about Binary Options on this subreddit and a lot of the responses are generally going to the direction about how this is exactly like gambling and that I would essentially have more luck and possibly more fun if I took my money to the baccarat tables. And now here I am pondering if its really worth it and if its not what are my other options?

And if not Binary Options then what other options are out there? As someone who knows a lot about binary options from the operations side, do yourself a favor and do not trade binary options. If you're absolutely set on doing it, I can help you pick a broker who won't run away with your money though The problem with binaries for retail stock investors is that they are VERY unfavorably priced.

In your analogy, the house edge is huge. You should probably start out with stocks and once you get comfortable then go into VANILLA options and even that would't be recommended for most individuals. I guess the main reason is the ease of access to binary options and the ease of trading. I am not familiar with Vanilla calls and puts but will do some research.

You can get plenty of leverage and action by trading vanilla options. Enough to lose all your money very quickly if you don't know what you are doing. My main point here, however, is that the pricing of binaries that you would get are ridiculously worse that what you should be paying. There is not a competitive market for this crap so you will get screwed by the people selling you the binaries. The house edge is so huge that it will make it essentially impossible for you to make money in the long run.

Also what sort of edge do you think you will have trading minute positions? You do know that there are many, many hedge funds out there with super fast computers on the other side of your trades Not trading at all is better than trading binary options. Any time a trade is structured so that your "broker" takes the other side of the trade, your broker isn't a broker, he's a blackjack dealer.

Even if you crack the system and actually manage to be profitable, your dealer will close your account because he doesn't want to lose more money betting against you. If this is the sort of thing you're into, just structure an options trade so that it has a binary payoff.

Look up vertical spreads, butterflies, and iron condors. Or you could just buy an option and immediately put down a One Cancels Other OCO sell order that will sell the option if the price rises above a threshold, or falls below a stop point. If you want to trade options learn to trade options. Trading stocks has barely anything to do with trading options, because you should be unconcerned about the underlying when selling options.

All that matters is sticking to the math and staying mechanical. Sell volatility premium and exploit vol skew when you see it. There are plenty of ways to make money with options, trading stocks will teach you absolutely nothing about any of them.

Dude, just listen to yourself. You are being too clever by half. You might be theoretically right for someone doing your style of option trading, but if you think that jumping into writing options is the right thing to do for someone who seems to have little or no experience even trading stock, you are crazy. He needs to get familiar with the basics of investing, risk management, and controlling his obvious tendencies for lunatic gambling before he steps into option strategies of any sort.

Thank you for your insight. You sound like you have experience with trading options. Do you have any resources to share for someone who may be interested in this? I get that it is higher risk and perhaps a gamble in the sense that you either win or lose your position, all or nothing kind of deal.

Get this binary idea out of your head. The only thing that will be easy about it is how easy you will lose your money. I've looked at binaries before, but for long-dated fx trades.

There is a sensible market for these things so I'm not knee-jerk crapping on binaries per se. Get some basic knowledge from something like John Hull's textbook. Selling vol premium like the other commentator mentioned is a solid strategy although perhaps not suited for you swing for the fences mentality.

You really do need to get smart on this stuff before putting any substantial amount of money into it. I just reread your reply. It's not the all or nothing feature of binaries that I am objecting to. That's not what is making it a bad idea.

You will be overcharged. Or using a poker analogy.. If you look around the table and you don't see the sucker, it must be you. Learn about basic investing first, then get into regular call and put options employing the least risky types of trades. I love these kinds of questions. In fact, I was in your shoes just the other year. The problem with it is that the learning curve is steep, and the cherry on top of this dessert is the operations side of the business You'd think you're gambling in a casino.

You really have to be on top of your game to make a profit from it. Your game plan isn't that bad either. Working with a small portion of your total trading capital is in line with proper risk management and the fact that you have previous experience as an investment advisor is a plus. The only thing that I'd say is that you should test the waters with binary options. If you've already practiced with a demo account, great!

But I'd say that you have most of the preparation set to invest. For me, I'm the most skeptical person I know I always want proof and if you'd like proof, look up some people on Linkedin that are binary option traders and ask them some questions. There's a forum that's called "BinaryOptionsThatSuck" that review brokers, strategies, etc.

Ask them a few questions and you'll get your answers. But as a fellow binary options trader myself, now moving on to Forex, I'd say that there is a potential in this market. It's just that there's so much BS out there scams, fake indicators, uneducated traders that it's hard to gauge whether it's a good market to trade or not.

But demo trade first. Demo trade in the same way that you'd trade your real account. Buddy, i think this YouTube video help you a ton I and my friends have a good and bad experience with binary options. I can just recommend page with rating of binary options http: My be you will find good for you. You should get your hands on binary options trading. It is cost effective; you can commence with a small capital amount and generate hefty returns.

You can also sign up for demo account to comprehend trading tactics. There are many platforms like described here https: I think it will be helpful in learning basics and then start comfortably. Hi mate, Seriously, I have been in the business of binary options for many years and while there has been a multiplication of scam brokers recently, there still exist reliable brokers in the industry and YES it is possible to make money with binary options. I used to trade Vanilla calls and put but when i read that binary options are not fairly priced versus vanilla calls i just want to laugh.

I was right on my market scenario but the way vanilla option are priced made me lose a lot of money. If you want reliable info about binary option strategies and brokers, feel free to have a look at my blog http: Use of this site constitutes acceptance of our User Agreement and Privacy Policy.

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