The main myths and real facts about Binary Options
Binary Options still seem to be something new, unknown, at least to most investors. Binary Options are always surrounded by myths and stereotypes – they considered to be a fraud, a trick, only “sharks” can make money on them selecting the last means from the inexperienced traders. Or maybe Binary Options is a revolution in stock trading? Is it possible to make money on them?
Many people are concerned about these issues today.
BINARY OPTIONS: A REAL TRADING INSTRUMENT OR FRAUD?
Why do you think investors initially distrust Binary Options?
Here is the answer: because of the high profit margins of 70-80%.
Unbelievable but true and easily explained. Of course when today’s business in Europe, America, the world works just under 2-5% margin, a maximum of 10-15%, then 70% profit in just 15 minutes seems unreal, recalling the advertising of a bad product that sellers want to sell off the hands.
It is from this stereotypes like “Binary Options trading is a fraud”, etc. start. However, once you start learning Binary Options you will see that 70% profit per trade – it’s a fact.
No investor will tell you that his deal, in which the terms of the option and the price of the asset correspond to each other, was unsuccessful. 70-80% profit is real and achievable.
DO BROKERS DECEIVE INVESTORS?
Many believe that brokers do not provide actual yield on the stock exchange. But share purchase is not the same as the Binary Options trade. By purchasing a binary option you do not get a stake, you are entitled to earn due to changes in the value of shares.
The system of investment in Binary Options is completely transparent, no other sphere of the stock market, loan market and bonds and other markets cannot compare with it.
Brokers do not charge commissions as their income is the difference between winning and losing transactions.
By the way, the brokers do have all the necessary licenses for the provision of services.
TO MAKE MONEY VIA BINARY OPTIONS – IS IT REAL?
Originally traders of stock and currency exchanges started trading on this market, because no exchange was able to provide such profit as Binary Options did. Especially the investor should not accurately predict the rate of the price change as for the profit it is enough that price just has moved – rose or fell.
It turns out that in order to make money you only have to predict if the price rises or falls in the specified period of the Binary Option.
By now the analysts have developed a number of trading strategies which are simple and logical – they are clear to everyone, even to the one who learned about Binary Options just half an hour ago.
Even children can understand the mechanism of Binary Options due to its simplicity.
Successful Binary Options trading does not require large expenditures of time and efforts. To understand where the price will go – fall or rise – you need to make at least a simple analysis.
To do this you can explore the economic and political news, Binary Options forecasts from the analysts, also you can use the methods of technical and fundamental analysis to ultimately understand if the share price of the selected company going to rise, or vice versa fall.
In short, you don’t have to have a doctorate degree in economics and finance for a successful investment.
WHAT IS THE REAL TRICK OF BINARY OPTIONS?
Paradoxically, the catch of Binary Options system is that it is available for everyone. No matter how strange it sounds, this is really the case.
First, any man can start investing in Binary Options, even the one who has very modest sums, because the minimum investment amount is record low. Of course no one would have refused to capitalize on share price changes of such giants as Microsoft, Google, Exxon Mobile, Apple, JP Morgan Chase, on the price fluctuations of oil and gas (say “Hi!” to shale gas revolution) and precious metals – gold, platinum, silver, etc.
But often people fill up their account and start investing relying only on their intuition or their desire to get rich on famous companies’ stocks, such as Coca-Cola or Mercedes, for instance. If the investor did not analyze current situation, did not use the strategy or did not learn the forecasts, such investment would not be profitable.
If you encounter a negative review about Binary Options – make no doubt it was left not by a real investor but by the person who just wanted to get rich quickly and easily on anything. Simply relying on the principle of “it’s obscenely easy”.
There is no fundamental difference between the Binary Options trade and trade in commodity, currency or stock markets. Everywhere investors get profit due to the changes in the value of the underlying assets. Therefore financial management, technical and financial analysis are relevant in Binary Options trading.
That’s all for now. Got any questions? Just ask the expert!