Hi there, i'm kind of new to this whole trading world and i've been trying to do some proper research recently in order to figure out is binary options trustworthy at all? or should i stay away no matter what? My co-worker has been doing binary for some time now, according to him he gains profits and my question is, do i have any chance at all if i'm a total beginner? obviously i'm interested in binary because the platform is more simplified to a person who doesn't have the adequate knowledge. what would you recommend?
Personally, don't bother, or play the open up account, get there $200 bonus for signing up, they'll pay out at first to get you hooked, after X trades you can keep the $200, then they'll play with it so you lose constantly and keep funding the account, obviously when the profits start to slow, bail and take your profit and the free $200 or whatever. Same on Gambling sites, with stupid card and bejazzled games. Scam, AVOID!!
I have never traded binary options but here is my advice: Stay far far away. Consider getting a brain surgeon to cut out any brain matter devoted to binary options so that it won't be a problem for you in the future.
You can't make consistent returns in binary options. Return is around 80% average, plus timed expirations play a huge part contributing to 'broker's' edge. Of course they aren't brokers, they just call themselves brokers and refer to BOs as investments lol.
I messed with them some and used Nadex. The fact the main screen has a spot on the side to enter your account info to add funds to the account should tell you a little about how people typically do. I'd recommend not touching them. And if you do, treat it like the casino and don't have any real expectations of striking it big. The spreads are usually a bit too wide to do well in the longer term and there are some funky things that happened that I picked up on and just decided it wasn't worth the time.
I made $$$$$$ in the 2000s trading binaries. When IG (the company that owns nadex) started offering them in the UK. In the early days the spreads were narrow, think 48-52 on all binary markets. And they used to misprice the volatility often so if you were quick you could just pick them off. Now the spread is so wide so any volatility mispricings stay mostly inside the spread. You cant beat them. Anyone trading binarys now is about 10 years late to the party.
Trade on a regulated options exchange in a regulated brokerage account. Simulate a binary option by buying a call and selling a higher call (vertical) or vice versa with puts
You're right, even Nadex is clearly targeting the gambler market. I am curious what the funky things were you picked up on, happy to take the answer on PM if you can't post them. Thanks.