10 Things the Media Won’t Tell You About Binary Options Trading
The media has its own way of controlling the data that reaches the masses. They’ve been known to spin topics in specific manners in order to favor their own agenda, bending the truth to support it when the time arises. Sometimes its tough to tell the truth from what really happened. This holds true for sensitive issues as well, which we believe includes binary options trading. In this article, we will discuss ten topics in which we feel the media has improperly persuaded the general public, and we give our own opinions on the subjects as well.
1) Binary Options Trading Being Unregulated is not a Problem
Critics of binary options trading warn potential traders not to invest with brokers who aren’t regulated in the United States. This has had quite the opposite effect than people would anticipate. Binary options brokers have to go through a rigorous process of self-policing, in a bid to maintain a large client base, and a majority of them are actually regulated in the countries in which they’re actually based.
2) Binary Options Trading is not the Same as Gambling
The media often depicts binary options trading as a form of gambling that is hidden behind a veil of market trading. The truth is, although there are similarities, gambling and binary options trading are distinctly different. Gambling typically requires a casino, a house edge, and entertaining games to play that are strictly based on chance: the house controls all the odds. However, binary options trading outcomes are largely controlled by the timing in which the investor places his or her trades, along with the side in which the investor puts their money on. An investor can control their outcomes through deep technical analysis, research, and close monitoring of market news.
3) Beginner Traders Should Learn all They Can Before Trading
Thanks to the media, many people believe that they can simply jump onto a binary options trading website and invest. They have also been taught to believe that most traders lose. While it may be easy for beginners to start placing trades at a binary options broker website, I would strongly suggest against doing so until becoming educated in trading these unique investments. Any new trader should make good use of binary options trading tools and demo binary options trading accounts provided by the various online binary option brokers before placing any binary option trades.
4) Market Sympathy Plays a Bigger Role than Traders Think
You can look for patterns and signals all day long, but that is no guarantee for success. This is particularly the case if some unforeseen political or economic event comes into play. Market forces and market sympathies can render any good analysis worthless and useless. Therefore, traders who think that the only to make money with binary options is by relying on expert analysis of signals and charts are definitely wrong; market sympathy is a game changer.
5) Money management is as Sophisticated as With Any Bank
Sometimes the media portrays binary options trading as some sort of scam or a bunch of online companies that are simply out to steal your money. This is false. In most cases, binary brokers are organized and operated by skilled money managers. They operate as efficiently as most banks because they have a constant number of transactions, including the investments themselves, deposits, and withdrawals.
6) Stock Trading Strategies Make Great Binary Options Trading Strategies
When the media criticizes binary options trading, they often say that it doesn’t work like normal stock market trading. This may be true in several ways, such as the speed and expiration times of transaction, but the two have a lot in common as well. A successful binary options trader must take into account the exact same data and analysis that applies to any other type of market trade. After all, binary options trading uses the same assets that the regular market trades do, so why wouldn’t the same techniques for success work for it too?
7) Return on Investment is Sometimes Exaggerated
Media sometimes favorably reviews the potential for a huge return on investment when trading binary options. Although this is somewhat true, it is often overstated and exaggerated as to just how big a return on investment a trader is capable of making. With that said, the percent return on investment is often higher than other types of market trading. The reason this is true is that once a trade order is submitted on a binary options trading platform, the investor does not have the right to sell the trade prior to expiration like in other forms of trading. This is simply a form of taking a higher risk, whilst receiving a higher reward.
8) They Often Fail to Mention the Lucrative Bonuses Available to Traders
The media seems to dwell a lot on the negative aspects of binary options trading. They fail to point out such things as the excellent bonuses that binary option brokers give to investors, something that you’ll find very difficult to find from any other type of broker. The bonuses offered by these binary options brokers range wildly, and can sometimes be unlimited depending on the level of trading action the investor brings. High percentage sign up bonuses, referral bonuses and trading volume bonuses are quite common in the industry.
9) A Trader can Profit When the Asset Trends both Up or Down
One thing that media doesn’t communicate well is that binary options traders can profit when the asset trends up or when it trends down. It is simply the difference between making an investment into a call option vs a put option or vice versa.
10) Binary Options Brokers do Not Charge You to Place Trades
Traditional brokers make money placing trades for their many investors and charge either a flat fee, or a percentage of the assets being managed. You can expect brokers to charge more if you’re trading with them over the phone, having them manage your portfolio, or having them look over your money in any other way than simply holding the assets in your account. The unique thing about binary options trading is that the brokers have worked their profit into the spread on the returns, eliminating the annoying charges that most other brokers charge per transaction.
Once again, the media relies heavily on their own agenda and their opinions aren’t necessarily fact when it comes to sensitive issues such as binary options trading. Best of luck and happy trading everybody!
