A Gambler’s Approach to Binary Options and Forex Trading

Binary option are by many considered gambling because there is a 50/50 possibility of winning. However, as binary option are based on the stock market there exists a ton of information and various tools available to traders who desire a specialized advantage and increase their winning odds. binary brokers with no deposit bonus

Additionally, the stock market reacts to various news, monetary lets out, government policies, and other information which permits smart traders to acquire even better advantage. Fundamental analysis is a very popular procedure to trading. 

However, in this article I want to make a circumstance not for technical and fundamental analysis but for something quite completely opposing, a gamblers’ approach to binary options. So should you be a gambler that performs the roulette, poker, or other game where the likelihood of winning are against you may be the perfect customer to a binary options broker.

Why? Mainly because gamblers keep coming as well as this reality is also the building blocks of the complete industry. The greater you play the greater then you will be at a loss. The extension of playing is a necessary factor which will certainly not be used for granted by the casinos or binary broker agents.

An incredible return for a trader that is managing an investment portfolio in a respectable investment firm would be 16% twelve-monthly income. Even 12% is considered excellent and most specific investors would jump at the ability if these earnings were ever guaranteed. That they usually aren’t. Obviously there are managers out there who can sometimes reach 300% of profit but for repeat this kind of success yearly would be nearly impossible.

Let’s analyze briefly why even 12% yearly is a good revenue for an investor. Generally there was this huge Ponzi scheme operated by one of the most respectable broker on Wall Road, Bernard Madoff, whose notorious funds promised about 11% return annually and there was a queue of investors with plenty pounds to offer him. Any kind of trader who trades the stock market markets regularly will say that we now have good days and there are bad days and that is the nature of beast.

So considering that 12% is definitely a good gross annual profit for an investor it might be rational for somebody who is a gambler to trade a lump sum involving on a single trade which generates about 12%. In Forex this will be a considerable market move that could last a day or maybe even a week. If you were to choose binary options your risk would be higher however your reward would be much quicker and also higher, 75% or more.

Of course trading all or almost all of your capital in a single trade moves against all sound money management rules. One of the cardinal rules of trading is to get no more than 2% of your investment capital. Making an investment 50% into one company is seen as really bad money management, or downright irresponsible.

Personally I actually think your trading procedure will largely rely upon your circumstances in life in addition to people out there who prefer to risk it all in one or two trades. Some do it for the madness, and some do it due to necessity but binary brokers offer trades of $10, 000 for a reason.

If you have $10, 000 and you need more money quickly you could theoretically put a trade on a 1 minute expiry where you appropriately predict a price movement of say EUR/USD and gain 73% of your invested amount, $17, 500, making your $7, 500 richer in one minute. The likelihood is simply mind-blowing but on the other hand if you lose the company you would probably lose your money, so no $7, five-hundred with no $10, 000.

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