Has Anyone Tried Binary Option Trading?

JEFF62 · 03/08/14 - 14:10

I came across an ad online claiming that there is a way of making good money by becoming a binary option trader. For those who dont know it is basically making short term trades on the stock market by predicting if a given asset will go up or down in the next ten minutes or so. The idea is to study the stock market and the way trading is going. For instance will the pound be stronger than the dollar. You then put an amount on either up or down. If you are wrong you lose all the money but if you are right you get your money back plus around 75% profit. So if you invested £100 correctly you would get £170 back. I opened an account with an option binary firm with $500 as you work in USA money. I am aware it could be a scam but i have given it a try. I have had some success but also a lot of losses too. I am now down to $73 and wondering if I should give it up as a bad job. It is claimed some are making thousands per month doing this. You are meant to be assigned a personal broker who works with you and trains you in trading. My one advised me investing $400 on a long term trade. Guess what? I lost all my money. i E mailed this broker who never replied. So maybe it is best to work out your own strategy. I am giving it one more go next week investing small amounts on each trade around 10 - 15 dollars on up to five trades per day. If any one loses then I will not do any more that day. I am not investing any more money in this. So has anyone else tried this and has anyone made a living out of it? Have I just been unlucky or is it a huge scam?

Toby LaRhone · 03/08/14 - 15:42

I don't need to.
I got a letter today from Nigeria informing me I will inherit £2m if I just send them £10k for the paperwork.
It's the Good Life for me from now on

platelet · 03/08/14 - 16:18

I'd stick with William Hill for gambling as at least you'd know they're a "legit bookie" and you'll get paid if you win.

Keefy-boy · 03/08/14 - 16:22

JEFF62 wrote: »

For those who dont know it is basically making short term trades on the stock market by predicting if a given asset will go up or down in the next ten minutes or so. The idea is to study the stock market and the way trading is going.

Why don't you buy longer term options? Predicting where something will go in 10 minutes time is like tossing a coin, you'd need access to very accurate real time data and serious computing power to have any chance of success other than by luck. If you're relying on stock ticker on a website or TV the data you see will already be 15 minutes out of date. There is no fool proof way of making easy money by gambling like this.

Yosemite · 03/08/14 - 17:43

Keefy-boy wrote: »

There is no fool proof way of making easy money by gambling like this.

... or (by definition) any other form of gambling. ;-)

Toby LaRhone · 03/08/14 - 20:31

JEFF62 wrote: »

The idea is to study the stock market and the way trading is going. For instance will the pound be stronger than the dollar. You then put an amount on either up or down. If you are wrong you lose all the money but if you are right you get your money back plus around 75% profit. So if you invested £100 correctly you would get £170 back. I opened an account with an option binary firm with $500 as you work in USA money. I am aware it could be a scam but i have given it a try. I have had some success but also a lot of losses too. I am now down to $73 and wondering if I should give it up as a bad job.

Why are you wondering?

tealady · 03/08/14 - 20:51

Keefy-boy wrote: »

Why don't you buy longer term options? Predicting where something will go in 10 minutes time is like tossing a coin, you'd need access to very accurate real time data and serious computing power to have any chance of success other than by luck. If you're relying on stock ticker on a website or TV the data you see will already be 15 minutes out of date. There is no fool proof way of making easy money by gambling like this.

^^This.
Companies spend a lot of money on developing the fastest algorithm to determine the best trade. You can't compete on short term trading.

Dahu · 03/08/14 - 21:35

JEFF62 wrote: »

If you are wrong you lose all the money but if you are right you get your money back plus around 75% profit. So if you invested £100 correctly you would get £170 back.

So it's a 50/50 bet but if you lose you lose $100, and if you win you win $70?

Seriously?

Leave well alone and don't go anywhere near anything like this again until you get a good basic grounding in probability theory.

jsmith99 · 03/08/14 - 23:15

JEFF62 wrote: »

...................... For those who dont know it is basically making short term trades on the stock market by predicting if a given asset will go up or down in the next ten minutes or so. ............................ My one advised me investing $400 on a long term trade........................

In this context, what's a long term trade? 30 minutes?

Keefy-boy wrote: »

Why don't you buy longer term options? Predicting where something will go in 10 minutes time is like tossing a coin, you'd need access to very accurate real time data and serious computing power to have any chance of success other than by luck. If you're relying on stock ticker on a website or TV the data you see will already be 15 minutes out of date. There is no fool proof way of making easy money by gambling like this.

Very true. I remember reading that some trading firms were setting up computer systems, linked to New York, on the west coast of Ireland, so as to receive information sooner than those in London do. Software then analyses the data, and places orders automatically based on that information.

What chance does an individual have, receiving data a minimum of 15 minutes later?

Hey there!

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Has Anyone Tried Binary Option Trading?

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