Are binary options a smart investment?

reifallen

Newbie
6 0
I have recently been putting some serious thought into my financial situation. I figured that it was time to put a serious plan in place that would allow me to accomplish all of my money goals over the next few years, as well as the end game of retirement. I figured that my strategy had to have 3 primary goals and strategies.

The first part of my plan will include short term, medium term, and long term goals. Obviously the short and medium term goals will ultimately accomplish the long term goals. I also want to look at including strategies for slow growth, medium growth, and long term growth. This means that some strategies will be long term, slow growing, but solid investments. Other investments will be much higher risk, but also have a higher return on investment when it goes properly.

I began looking online for various methods, ideas, and strategies to accomplish these goals. One technique and method that I came across is the use of binary options. I ultimately found this page http://en.wikipedia.org/wiki/Binary_option on Wikipedia. They explain that a binary option has some payoff that is either a fixed amount, an asset of some type, or nothing at all. This means that the payoff will be significantly higher than with other investments, but there is also more risk compared to traditional investment vehicles like a 401(k).

I continued my search for more information about how to use binary options in order to earn money as quickly as possible and to include in my quick and short term financial goals. I found various programs that offered instruction, as well as countless books on the topic. I also found various programs that allow someone to make trades. They ranged from super easy to use all the way to college graduate complex.

My question is whether or not any of you has had any experience with buying and selling binary options. What advice would you offer to help me get the most out of my trades as quickly as possible? Do any of you have any experience in this investment vehicle? I am open to anything all of you can offer me, and any advice you may give.
 

Trader T

Newbie
6 1
Binary Options - Limited research

Hi, Reifallen,

I have been an stock & option trader in the past couple years, and heard about binary options used for construction of structured products by banks. Then I read online advertisement on binary options, and wanted to learn more to see if it is my cup of tea.
In simple words, it is a short term bet on direction / price level of designated financial instrument, with pre-defined payout. You either win (you will be pay fixed sum), or you lose, and there gone your money, and there is nothing in between. Example, you place a 1 dollar bet on S&P go up to hit 2000 in 1 day's time, with a payout of 2 dollars for every dollar you put in. If S&P go up and hit 2000 or more in exactly 1 day's time, you get 2 dollars; if not, you lose all your money. It is like betting football match.
This is nowhere near those binary option used by banks. Someone may like it, but I decided that this is not my cup of tea, so I moved on.
If you wanted to learn more, Binary Option from Alex Nekritin is a good read.
Hope my info is helpful to you. Good luck!
 
Last edited:

HedgeFounder

Junior member
29 0
Hello,

Binary options are a financial instrument just like futures, forex or options. The main difference is that when entering a trade you pre-define your exit points (profit or loss). The probability is the same to make money just like with futures or forex (meaning a 95% failure rate among traders).
Binary options brokers make money out of traders commissions (or spreads), the result is the same, they are guarantueed their profit whereas you are not. Their regulation is not as tough as US futures so I don' recommend them due to inherent systemic risk. This latter statement is only my personal opinion.



I have recently been putting some serious thought into my financial situation. I figured that it was time to put a serious plan in place that would allow me to accomplish all of my money goals over the next few years, as well as the end game of retirement. I figured that my strategy had to have 3 primary goals and strategies.

The first part of my plan will include short term, medium term, and long term goals. Obviously the short and medium term goals will ultimately accomplish the long term goals. I also want to look at including strategies for slow growth, medium growth, and long term growth. This means that some strategies will be long term, slow growing, but solid investments. Other investments will be much higher risk, but also have a higher return on investment when it goes properly.

I began looking online for various methods, ideas, and strategies to accomplish these goals. One technique and method that I came across is the use of binary options. I ultimately found this page http://en.wikipedia.org/wiki/Binary_option on Wikipedia. They explain that a binary option has some payoff that is either a fixed amount, an asset of some type, or nothing at all. This means that the payoff will be significantly higher than with other investments, but there is also more risk compared to traditional investment vehicles like a 401(k).

I continued my search for more information about how to use binary options in order to earn money as quickly as possible and to include in my quick and short term financial goals. I found various programs that offered instruction, as well as countless books on the topic. I also found various programs that allow someone to make trades. They ranged from super easy to use all the way to college graduate complex.

My question is whether or not any of you has had any experience with buying and selling binary options. What advice would you offer to help me get the most out of my trades as quickly as possible? Do any of you have any experience in this investment vehicle? I am open to anything all of you can offer me, and any advice you may give.
 

reifallen

Newbie
6 0
I appreciate all of the feedback from you guys. I understand that there is an innate risk in this type of strategy for earning money. Is it reasonable to include binary options as part of my financial growth strategy or should I focus on other methods. I have **LINK REMOVED** which presents a fairly simple method and approach. Have you used this site before, or do you know anything about it?

My long term investment plan includes stock that I intend to hold for a long period of time. I also intend on investing in real estate, and I have been placing money into precious gems and metals, as well. That is my overall long term strategy.

I also have a strategy that I am putting in place that has a little bit higher risk rate than gold, but will provide a slightly higher return on my investments. I am looking for short term strategies that may be high risk, but have the best chance of giving me a return on my investment. I know that binary trading isn't as regulated, yet, but I also believe that the simple up or down strategy makes it an easy approach for a short term strategy.
 
Last edited by a moderator:

gracieJJ

Newbie
5 0
yes binary options is a vvery good investment if you have the proper tools and knowledge. A strategy like binaryholygrail can grow your capital to a good amount
 

trade2bpro

Active member
159 1
I think binary options is like forex so it depends on your skill. If you can earn more money with BO than forex, it should be a smart investment.
 

FXLord

Junior member
19 0
Lately it has been criticized as nothing more than gambling, pure and simple, yet the buzz around it is getting louder and the promise of easy money is attracting the attention of people from all walks of life..but maybe it is too risky
 

seti2

Junior member
26 1
don,t think about it

hi
my advice to you after long time experience to not trade binary option unless you find proper right broker who offer right strategies and you could trust them and that
is impossible because most of these brokers who offer this type of investment is with full respect to all of them is (rubbish ) based on Cyprus and not regulated and may be IG index the best between of them
but high and low is no good strategy
and i see you are american citizen and no one will open to you account because of regulatry of your country

open your eyes good and look for good investment especially on USA /there is huge companies offer wide range of INVESTMENT
 

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