Binary Options is not a Scam ; it is however a Huge Business for Affiliates from Home

Jan. 18, 2013 - PRLog -- Why Traders Consider Binary Options a Scam

There is a wide range of trading options when it comes to the forex market. One of the foremost is binary options trading. However, the general perception regarding it is that it is a scam. At the same time, the traders using this method have been reaping high profits in no time at all. Hence, it does beg the question why traders consider binary options a scam. There has to be some substance to it else why would traders miss out on a profit making opportunity. Here are some reasons why.

Traders Have Little or No Understanding
A trader needs to have some background knowledge regarding how binary options trading works. Inexperience is the biggest handicap in forex trading and the only way to overcome that is to learn about binary options trading. It is true that this method is simple and easier as compared to others but it does require some learning. Traders who trade binary options with little or no understanding fail to earn profits. Hence, they blame the system rather than their inexperience and lack of understanding.

Traders Don’t Like Losing Money
If there is one common trait in traders across the various financial markets, it is they don’t like losing money. When they lose money through a trading system, they often blame the system, portraying themselves as victims rather than acknowledging the fact that they were at fault for their losses.

Traders Have Been Scammed
Not every binary options trading scheme is a scam but traders have been swindled in the past. News gets around fast and a general perception is formed regarding the method. It is natural for a forex trader to approach any opportunity to trade binary options with a little caution. However, they tend to go overboard in writing off binary options trading off completely.

These are some reasons why traders consider binary options a scam.

Introduction to Binary Options Trading

Binary trading has emerged as a favorite of traders across different financial markets. The simplicity it provides when trading currencies, stocks, indices and commodities has compelled many traders to adopt this method. In this method, the fundamental concept is the same. The trader has to predict the price movement on an underlying asset. By definition, binary options’ trading is not difficult. However, there is some risk involved in it like all trading methods.

The reason why it is called binary options is because only two outcomes are possible: profit or loss. You can either make a profit on the trade you made or lose all the money you put in. Only in rare cases would you see traders receiving a refund of the amount they invested. Hence, it is a 50-50 chance for you. This is why the risk is present even though trading binary options is quite simple.

At the same time, the 50-50 odds act as a benefit too. The trader knows exactly how much money he/she will make or lose on each trade. The risk can be predicted beforehand which is why many traders are using this strategy in the markets where risk is high such as the stock market. Regardless of the amount you invest, the loss cannot be more than that.

The lack of complexity in binary trading makes it the right choice for someone not experienced with trading in the financial markets. Basic trading strategies and other helpful information can be obtained easily from a broker or through research on your own. The other aspects of trading binary options become clearer as you gain more experience in the market.

Though you may make a loss on the first few trades, the experience and knowledge you gain will prove to be invaluable. Once you have decided to follow binary options trading, stick to it. It will pay off big time!

Why Using the Right Binary Options Strategies is Important

There is no dearth of binary options strategies for a trader to use when trading. A trader has the luxury of selecting a strategy which goes along well with his/her trading mindset and outlook. Sometimes, the market you are trading in determines which strategy would work best for you. Yet, there is an apprehension in the minds of certain traders about using the strategies for binary options. After all, it is up to the trader whether he/she wants to use the strategies or not.

The strategies are not rules or laws which have to be followed. The trader can decide to work independent of any technique which has been laid down by other traders before. However, there is little doubt that using a tried and tested strategy for trading binary options would only prove to be beneficial. Even if you put your mind to it, you wouldn’t be able to come up with any solid reason why binary trading strategies should not be used.

Using the strategies is important, perhaps essential, for a new trader. A trader who doesn’t know the ins and outs of the stocks or commodities markets would find it hard to find his/her feet. Inexperience could prove to be a handicap, though this is somewhat limited when it comes to trading binary options. But that doesn’t mean that the trader should not start off in the best way possible. The strategies provide a perfect guideline for the traders to follow and gain experience in the market.

At the end of the day, a trader has a 50/50 chance of making a profit on any trade. By using the right binary options strategies, you can skew the percentage towards profit and avoid loss. Though it doesn’t guarantee success, it does put the odds in your favor. You have to make the decision regarding whether you want to use them or not.

If trading just is not for you, you can still earn a very lucrative and comfortable living from home by becoming a binary options affiliate.