Binary Options Criticism: Not All Gold Shines

With binary options, very high returns can be made within a short time and with no experience in financial markets . – At least that’s what the brokers promise . On the other hand, critics warn users against the dangers, because binary options extremely speculative and carry a significantly higher risk of loss than other forms of investment . So you shouldn’t invest in binary options? Or maybe with the corresponding training binary option , as it is usually offered free online , profitable and risk managed to trade with this financial product. With the following article, we want to remove ambiguity and show, what requirementsthat traders for binary options must absolutely meet and how high-risk can be handled in an appropriate manner. reasonable.

Many customers have suffered high losses

The special structure of binary options appeals especially to beginners , who have no or very little experience with trading financial products. It often happens here that risk is misjudged and investors quickly  lose their entire trading capital . Therefore, the Internet is full of criticismbinary options . This is not only coming from the customers who suffer , but also from the consumer centers  that are now voicing the binary options warning . The allegations made by some of the ex-traders of binary options are fake and therefore you cannot win any money with it, but also not true . While there are always scammers among online brokers, binary options trading is entirely possible even under severe conditions . Investors should only be aware of the highly speculative nature of binary options . While the more conservative forms of investing with the right strategy cannot lose and the total loss almost never happen, both happen everyday in binary options trading, Therefore, really should just invest money here, if this can be considered a kind of  “use the game” , can  lose with non-low end probability .

It is a binary option that can lead to high loss , now known. Not only are consumer advocates trying to warn binaryusersof the dangers of trading with their criticism, but also many customers  who have suffered a report of losson the internet .

However, new entrants continue to sign up with many brokers and in some cases have to pay large sums of money to them. Binary options are very popular with beginners because of their simple structure : trades can be learned quickly and not many decisions have to be made to trade. Therefore, binary options are an ideal opportunity for many users to enter the financial markets without having to deal with the functionality of the trading platform for days or weeks . Most of professional traders prefer it to clearly trade more complex in CFDs or products forex, as it offers more options and thus good decisions have a greater impact on profits . While there are some successful binary options experts , most will soon move on to other products . But that doesn’t necessarily contradict binary options: Many professionals have started their career  here and make pretty good money with binary options.

Trust is good, control is better: find a suitable broker

Traders need a broker to trade binary options . As interest in this form of investment has continued to grow in recent years , the number of brokers has also increased automatically . So it is not easy to find your way among many providers. Compare Brokers help and in our detailed reviews we take a closer look at the individual providers to help you decide on choosing the right broker .

Reputable brokers are reviewed by official bodies and regulated by those found. That ‘s not all equally good . For example, for Vietnamese traders, it has some advantages if the broker is regulated in the EU. On the one hand, the security regulations are particularly strict here, so EU brokers generally cause problems much less often than significantly worse regulated brokers, who , usually sitting in the Caribbean . On the other hand, the broker is easier to grasp, if it really becomes a legal dispute, then Optimum is of course always a broker from their home country, but Vietnamese providers for options binary, there are very few. Most Vietnamese financial experts attach great importance to EU regulations.

Binary Options Addiction – A Long Underestimated Danger

The usual binary options criticisms are related to the high risk of loss and high false advertising . But “addiction” should not be underestimated. Many traders won’t give in to the idea when signing up with a broker that binary options can be addictive. After all, this is a financial product and not a slot machine or the like.

Although binary options can affect chance of winning with good chart analysis and therefore not a pure game of chance , both areas are very similar and even with binary options feces, part of success depends on luck . Added to this is a special structure: when a trade  is won, an amount is credited, usually as high as the stake. Since the end is well defined , the passage of time can be  predicted . If the trade actually wins, it will of course create a feeling of happinessThe trader’s body releases the so-called  endorphin . Of course, merchants want to experience this feeling of happiness many times . This creates an addiction , like a slot game . Therefore, in all cases for binary options, ignore, if there is an addiction problem or the potential trader is considered at-risk .

Good risk management cannot be abandoned

If you trade in binary options, you will suffer losses all the time, because trading is very speculative and despite good analysis, the price often does not perform as the trader would expect. Therefore , anyone who wants to trade binary options for the long term should be prepared for a good financial plan, in which they are disciplined . Such a plan includes a percentage of available credit maximum that can be used simultaneously . Since in a trading lost direct complete application , this is designed planned. A single loss should not affect capital too much, otherwise it will fluctuate widely and be exhausted at the first negative variance .

In the  training material  of some brokers it is advised never more than 10% of the total credit to use for one trade. It sounds a bit small, but it’s still bold , because oftenseveral trades are lost in a row . Therefore, professional traders choose significantly smaller percentages and adjust them consistently if they have a losing streak and thus their total capital becomes smaller.

So binary options do not threaten existence

Binary options are not suitable for meaningfully investing money earned , being spent for buildinghouse , providing old age or buying back while still making a profit. With luck, this is exactly what can be done, but the customer doesn’t have it completely in their hands . Due to the highly speculative nature of binary options, there is at least much danger that the investment money will be lost . As a result, the client will have to financially confine himself , since he can no longer use his capital as planned.

Avoid the binary options trap described and just invest money where the loss is not a problem for you . Many brokers have little or no minimum deposit requirements. If you want to try binary options, you should do so with the smallest amount possible or with a free demo account . Such a demo account is offered by many brokers and can usually be used for a  limited period of time . Here you can trade for free and risk-free with play money and therefore experiment with binary options, without having to deposit any money.

Despite precautions: risk persists

As we have seen, there are several measures to make binary options trading safer . However, trading is still a highly speculative matter will never risk . For investors who, in the worst case, don’t have too much of a problem with lose their entire investment and still want to seize  their opportunities on binary options, they can still be a matching trading variant . For all others: Binary Options Stay Away! There are always traders who want get quick money with binary options and Skip Risks even though they really need their capital. These traders often tell themselves that  total losses will not happen to them and dream of quick profits . Unfortunately, it is these users who are usually affected by total loss . Among other things, this could be due to the fact that pressure not losing capital means not able to make optimal decisions and in many cases, the trader is overemotional . But even if all the precautions were taken, it could still happen that everything is lost . Professional traders are aware of this risk and have a plan B in the back .

Our Conclusion: Serious Binary Options Critics

Important statements about binary options should be taken seriously by both active traders and potential newcomers . It is not a safe bet in which assets should be invested, necessary to maintain a standard of living or planned for other purposes . There are better opportunities in the financial markets for this.

If it is written that binary options are fake or rip-off, that is also exaggerated . Although in the past there were always real brokers scams and customers brought in a lot of money, with reputable providers not a scam. However, it should be noted that  the biggest profits are usually the brokers . The client receives a financial product in which, although by a good knowledge and properly conducting price analysis , the increasing odds can be, profitable but to a large extent dependent opportunities, Trading conditions can be readby reputable providers in the terms and conditions, so no trader has to be left out. Professional traders inform themselves in advance and only sign up with brokers  where they get  good terms .

Binary options trading is still highly speculative and always carries a risk of high loss , even  total loss . Only clients who consciously accept this , have a chance to be satisfied with binary options in the long term and can act successfully .