Binary option post

But unfortunately the binary-options bubble continues to brew.

Unless more decisive action is taken, more and more people are going to be cleaned out of their savings by unscrupulous operators. Unlike normal options, however, binary options do not fluctuate in value. Because of this binary nature, many shysters see an opportunity in selling binary options that are highly unlikely to end up in the money. They get to collect the hefty premiums, but never have to pay out. The media is part of the problem.

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This dubious success story was widely shared on social media without many questions being asked. That would literally make him the best trader of all time. So how did a year-old school kid learn how to outsmart the best minds and machines on the planet, just by watching YouTube videos? There was also the very recent example of Gurvin Singh, a year-old medical student in Plymouth who claimed to be making six figures a month from foreign exchange trading.

Those who signed up for his services found that their trading accounts were emptied on Christmas Eve and the FCA has added him to its warning list of unauthorised traders after the fact, unfortunately. This aggravates me because, as a genuine trader, I work hard to make profits and I know what it takes. There are many reputable financial-trading firms and brokerages out there.

Spread-betting firms typically make their money on the spread the gap between the buying price and the selling price and the commission paid by their clients. So their business model does not benefit from losing traders. However, many brokers know that a losing trader can be very profitable — for them.

Simply take the other side of the trade. When Johnny Punter buys, the broker sells.

And when Johnny Punter wishes to cover his losses, the broker buys and collects the profit. Unprofitable traders are so profitable for many a bucket shop that they will pay handsome introduction fees for new traders. Therein lies the incentive. And of course, there are plenty of places to hunt down a cheap, out-of-season stay at a luxurious five-star hotel, where they can do exactly the same. Most informed investors realise that if a magic money-making machine did exist it would be owned by a private hedge fund, never to see the light of day.

So anyone who actually believes that a year-old student could pull this off is ideal bait — inexperienced, naive and potentially desperate. But also, they know or rapidly learn that there is very little the police can do. The banning of the sale of binary options was a step in the right direction. Then, when the client finally wishes to withdraw, the company goes cold and refers them to the small print, in which it says that the client must trade through an impossible amount of money just to be allowed to withdraw.

Other brokers allow the affiliate to widen the spread to maximise their own commission and increase losses for their clients. We look at ways to avoid being scammed in the box below, but in short, as always — if it looks too good to be true, it is. For more from Michael, see shiftingshares. It is no wonder that so many new and experienced traders alike get their heads spun and end up washed out of the markets.

How is a trader to overcome all the noise and have the time to make sound analytical trade decisions?

By using the after hours trading strategy. This window provides a few hours of relative calm for market participants. There is typically no major business or economic news in that time and nearly all markets are closed. Traders can use that quiet time of the day for more efficient and effective analysis without the noise of an open and busy market.

The really good news is that this method can be used in nearly any time frame of trading except the high frequency 60 second and 2 minute high speed turbo style of binary. I know some of you prefer to trade that way but statistically speaking less frequent longer term traders have a higher rate of success.

You can use this method to get ready for a day of 60 second trading by determining your market stance and the underlying trend then only trading in that direction. This is how it works, you can do this every day or any day that you want to make a trade. First, wait for the markets to close and give enough time for any after hours earnings reports to be released.

Usually by 5PM the day is done and you can begin. I start by checking the earnings and economic calendars for the next day to see if any market moving events are on tap. Next I look at a chart of weekly prices, usually candlesticks, to get an idea of the underlying trend. I look to see what the long term trend is and where price action is relative to that trend. This is usually a cursory look only as the long term conditions change so slowly.

I may take a signal off any one indicator but a convergence of indicators is always a much better signal.

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If is see a signal I plan on a trade and enter it into my account as soon as the market is open. The daily charts give signals on a weekly or bi-weekly basis which is not many I know. This technique also works very well with hourly and 30 minute charts providing numerous signals.