Binary Options Criticism: Not all gold glitters

With binary options, very high profits can be made in a short time and without experience in the financial market. – At least that’s what the broker promises. Critics, on the other hand, warn users against the dangers, because binary options are highly speculative and carry a much higher risk of loss than other forms of investment. So why not invest in binary options? Or it can be with the corresponding binary options training, because it is often offered online for free, profitably and with manageable risks that can be traded with this financial product. With the following article, we want to eliminate ambiguity and presentation,

Now open a trading account on IQ Options 

 

 

Many customers have experienced high losses

The special structure of binary options is attractive especially to beginners, who have no or very little experience trading financial products. Here often cases of risk are miscalculated and investors quickly lose their entire trading capital. Therefore, the Internet is full of criticism of binary options. Not only does this come from a broken client, but also the user center now warns binary options. The claim of some former traders that binary options are fake and therefore you cannot win any money with them, is also not true. Although there are always scammers among online brokers, but binary options trading is very possible even under serious conditions. Investors just need to be aware of the highly speculative nature of binary options.

 

Why binary options are so popular with beginners

Binary options can lead to high losses, now known. Not only user advocates try to warn binary users about the dangers of trading with their criticisms, but also many clients themselves have experienced losses on the internet.

However, new entrants continue to register with many brokers and in some cases pay large sums of money for them. Binary options are so popular with beginners due to their simple structure: trades can be learned quickly and not many decisions need to be made to place a trade. Therefore, binary options are an ideal opportunity for many users to participate in the financial market without having to deal with the functionality of the trading platform for days or weeks. Most professional traders clearly prefer more complex trading in CFDs or forex products, because they offer more options and therefore good decisions have a greater impact on profits. Although there are some successful binary options professionals, the majority will switch to other products from start to finish. But that doesn’t necessarily contradict binary options: Many professionals have started their careers here and earned pretty good money with binary options.

Now open a trading account on IQ Options 

 

 

Trust is good, control is better: find the right broker

Traders need a broker to trade binary options. As interest in the form of investment continues to increase in recent years, the number of brokers also increases automatically. Therefore, it is not easy to find your way among many providers. Broker comparisons help and in our detailed reviews, we take a closer look at individual providers to help you decide on the right broker.

Reputable brokers are considered by official authorities and regulated by the discoverer. It is not every rule is equally good. As a Malaysian trader, for example, it has several advantages if the broker is regulated by the EU. On the one hand, the security regulations are very strict here, so that EU brokers generally cause problems much more often than worse regulated brokers, who, for example, often sit in the Caribbean. On the other hand, the broker is easier to understand, if it really becomes a legal dispute must come. Optimal is indeed always a broker from their own country, but Malaysian providers for binary options, there are very few. Most Malaysian financial professionals attach great importance to EU regulations.

 

Addictive Binary Options – The Dangers of Taking Too Long

Common criticisms of binary options are related to the high risk of loss and misleading advertisements. But addiction should not be taken lightly. Many traders will have no idea when signing up with a broker that binary options can be addictive. After all, this is after all a financial product and not a slot machine or anything like that.

Although binary options can influence the chances of winning with a good chart analysis and thus are not pure gaming opportunities, the two fields are very similar to each other and even with binary options, part of the success depends on luck. Added to this is a special structure: when a trade is won the amount is credited, which is often almost as high as the stake. Because of the clear end, the passage of time can be expected. If the trade is actually won then it will certainly create a feeling of happiness. The trader’s body releases endorphins called . Of course, traders want to experience this happy feeling again and again. This creates an addiction, like a slot game. Therefore, in any case for binary options, far fingers,

Good risk management cannot be ignored

If you trade in binary options, you have to bear losses all the time, because trading is very speculative, and despite good analysis, prices are not usually performed as traders expected. Therefore, whoever

who wants to trade in binary options in the long term needs to be prepared for a good financial plan in which he is disciplined. Such plans include a maximum percentage of available credits that can be used concurrently. Since the complete application is lost directly in the trade, this must be planned to be. A single loss should not be a big impact on the capital, because this if not variable in most will and initially the negative variance will run out.

In the training materials for some brokers it is advised not more than 10% of the total credit to be used for a single trade. That sounds a little, but it is still brave, considering that several trades often lose in a row. Therefore, professional traders choose a smaller percentage and adjust it consistently if they experience a loss and their capital amount becomes smaller.

Now open a trading account on IQ Options 

 

 

So binary options do not threaten its existence

Binary options are not suitable for voluntarily investing voluntarily earned money allocated for housing, old allocations or acquisitions while still generating profits. With luck, this is exactly what can be done, but customers do not have it completely in their own hands. Due to the highly speculative nature of binaries, there is at least some risk involved in investing. As a result, the customer has to limit himself financially, because he can no longer use his capital as planned.

Avoid the pitfalls of binary options described and only invest money whose losses are 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 least amount possible, or with a free demo account. Such demo accounts are offered by many brokers and can usually be used for a limited period of time. Here you can trade for free and without risk by playing money and so make experience with binary options, without having to deposit.

Despite the precautions: the risk remains

As we have seen, there are several steps to make binary options trading safer. However, trading remains a highly speculative matter that will not be without risk. For investors who, in the worst case, do not have too many problems with losing their entire investment and still want to take advantage of binary options, they can still be a suitable trading variant. For all others: Binary options Stay away! There are always traders who want to make money quickly with binary options and ignore the risk even though they really need their capital. These traders often tell themselves that total loss will never happen to them and dream of quick profits. Unfortunately, these are the users who are very often affected by the total loss. Among other things, this may be because the pressure to not lose capital means that optimal decisions cannot be made and in many cases, traders are too emotional. But even if all precautions have been taken, it can still happen that everything is lost. Professional traders are aware of this risk and have a plan B in their hindquarters.

 

Our conclusion: Binary options take criticism seriously

Critical words about binary options should be taken seriously by both active traders and potential newcomers. It is not a safe investment where assets need to be invested, which are needed to maintain living standards or are planned for other purposes. There are many better opportunities in the financial market for this.

If it is written that binary options are false or degenerate, that is also exaggerated. Even in the past, there have always been brokers who have actually been scammed and clients have brought a lot of money, with leading providers not being scams. However, it should be noted that the biggest profit is usually the broker. Customers get financial products, which can be improved with good expertise and appropriate price analysis, profit opportunities, but profits still depend on most opportunities, Trading conditions can be read by reputable suppliers in the terms and conditions, so that no trader cut off Professional traders inform themselves in advance and register only with brokers, where they get good terms.

Trading in binary options remains highly speculative and there is always a high risk of loss, even total loss. Only clients who consciously accept this, have the chance to be happy with binary options in the long term and can act successfully.