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Aug 3

Response to the Forbes Binary Options Article

Posted by at 21:21 | Default | Comments(0) | Reads(593)

If you do a lot of research on binary options trading, it is likely that you have read about an article on Forbes that is telling people to avoid trading in binary options. The title of the article on Forbes is Don’t Gamble on Binary Options and I want to comment that the writer who wrote this article did not do much research on the subject and it is obvious that he don’t have much experience on binary options trading. Therefore, we have decided to address every single point in the article at Forbes to give reader a better understanding.

The first point claims that binary options trading is just another form of gambling and that it mainly attract people who like to gamble just like those who frequently play at the online poker sites. It says that these people just mask themselves as respectable traders but they are really just gambling away their money.
Those who have a lot of experiences in trading will tell you that traders who don’t do much research before investing are in fact regarded as gamblers. Traders who educate themselves by doing research on the asset they are trading and careful in taking into account all factors are not to be regarded as gamblers.

Trading binary options is not to be confused with gambling because you have to study the economic data to predict the price movement. The price movement of an asset can be predicted by watching out for the release of major news such as a political event or unemployment.
Besides, many brokers have offered a lot of features that help to minimize the losses of the traders. One feature is the stop loss feature which allows traders to end the option to stop the loss if they perceive that the price is going in the opposite direction of what they predict.

The second point is that it appears that the writer just simply paste in the binary options scam email into the article without first doing research on it.
The author who write the email claimed to be a professional Australian gambler in the poker game and he is doing his best to tell his father not to waste his money by investing in binary options trading. He may have been right about the payout of binary options trading but he didn’t mention which broker he was referring to.

But, he was making a mistake when he said that only traders who have a lot of experiences can make a profit in the binary options trading.
Many people now know about binary options trading as a way to earn side income and those who don’t have a lot of experiences are able to become a good trader within a short time. These traders have continued in trading binary options because they constantly make profits.

The writer of the Forbes article argues that trading in binary options can make someone addictive. This is not true because many people have managed to become a good trader by disciplining themselves and having good money management skills.

Secondly, the writer argued that no trader is able to make correct prediction every single time. While it is true that no one can predict correctly every time, this point is not fit to be used to advice people to not invest in binary options. Successful traders did not guess correctly every time but they guess correctly most of the time so that they are able to make enough profits to cover the losses.

The writer points out that a trader need to have at least 54% success rate to make a decent profit. However, he forgot to take into account that binary options trading have no spreads unlike online forex trading.

Another point that the writer made which is wrong is when he claimed that binary options trading is an unregulated industry.  This statement is true if it was made a few years ago but many binary optinos brokers are licensed nowadays like Binary Mate. Many binary options trading brokers have started to get licensed and regulated starting in 2012. Slowly, more and more binary options brokers that entered into the market also applied for license and get regulated.

Many news portals have wrote negative things about binary options trading but the truth is that it can be profitable if you are willing to do research in your trading. Fortunately, Forbes did not really not recommend binary options trading because they display advertisements for a number of online binary options brokers.

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