Newbie questions on binary options

[N8te]

Hi all

I'm based in the uk and as a newbie researching the world of trading I would like to hear your opinions on binary option trading. The amount of money I can afford to trade with small, circa £250 to learn with. I haven't been on the forum long but after reading a few threads it seems experienced traders prefer other types of trade. It would be great to hear people's experiences with binary options, if they stuck with it, or if not then why?

Thanks in advance

 

[timsk]

Hi all

I'm based in the uk and as a newbie researching the world of trading I would like to hear your opinions on binary option trading. The amount of money I can afford to trade with small, circa £250 to learn with. I haven't been on the forum long but after reading a few threads it seems experienced traders prefer other types of trade. It would be great to hear people's experiences with binary options, if they stuck with it, or if not then why?

Thanks in advance

Hi N8te,
Welcome to T2W.

Binary options are marketed to novice traders because they are easy to understand, look fun and exciting and appeal to the 'get rich quick' gambling mentality. If you approach Binary Options in the same way as you would playing roulette in a casino - i.e. as a bit of fun - that's fine. Enjoy yourself, but expect to lose all of your £250.00 - which you almost certainly will.

The basic problem with them is that like roulette, the odds are stacked heavily in favour of the house. This applies to other trading vehicles too (e.g. spread betting), but nothing like to the same extent. The latter is still very tough, but it's more of a level playing field than Binary Options.

All trading involves risk. The job of the trader is to do everything in their power to minimise the number of risks they take and, thereafter, to minimise their exposure to the risks they have to take. One way most experienced members of this forum achieve that objective is to avoid binary options like the plague.
Tim.

 

[N8te]

Thanks Timsk, appreciate you taking the time to respond