The Ultimate Question Is Binary Options Gambling

Binary Options: Trading Or Gambling?

Binary options. Is it about gambling or trading? This is the question that many people ask when considering binary options trading. The ideology behind this is simple; no matter how much research you complete, the basis of trading in binary options is simply deciding in which direction the price is going to move. This can be compared to taking a gamble on any kind of sport.

The Truth – Is Binary Options Trading Investing or Gambling?

The only true way of deciding whether any activity can be classified as gambling is by understanding what gambling actually is. Of course, most terms have an array of options regarding their definition. Gambling is no different, but the common theme in any description is that it is the process of attempting to generate funds through estimating the outcome of any given event. For it to be truly classed as gambling it would need to rely on chance.

Trading in binary options may, at first glance appear to fit these criteria. It does involve investing money in an attempt to generate funds and the outcome is controlled by chance, or fate. However, binary options trading may be classified as gambling by these standards, but, there is much more to it than many people originally think. The ultimate outcome is controlled by chance, but the decision as to which direction the price is likely to move in is controlled by the amount of analysis you complete before parting with any funds. Anyone involved in these transactions will quickly realize that those who apply analysis and methodology to their trading have much better and more consistent results than those who do just leave it to chance.

Certainly investing in this way can be seen as trading and relying on chance. Unfortunately, it is never this simple to define any activity. Generating profit from this opportunity involves a solid and analytical approach; this cannot be considered gambling. But, if you have a casual approach then you could be considered to be gambling! The answer perhaps lies in the approach of the trader.

Deciding which Binary Options Trading Route is Right for You

If you are not prepared to analyze and assess the market then you can consider yourself a gambler. This will quickly become apparent to others as you will never develop a strategy, you are unlike to worry yourself with basic principles such as money management and you generally lose money over the long term; even if short term successes seem possible.

The alternative is trading in binary options professionally. This means studying the different methods available and devising your own method of trading. Part of this strategy will involve basic money management; this limits your exposure should a trade go wrong and ensures that you develop your knowledge and improve your options with every trade. Granted, chance will always play a part but a binary options trading professional will seek to minimize the intervention of chance by knowing the market and adopting the best approach possible.

Perhaps one of the simplest ways of understanding the difference between gambling and trading is to compare it flipping a coin. Without a system every flip has a fifty percent chance of being right for you. It is possible to be right more times than wrong but it can just as easily go in the other direction. However, if you know something about the coin and can predict how it will land then each flip will be more likely to land in your favor. You will no longer be relying simply on chance and will be trading to generate a monetary yield.

Learning to read and understand the markets will separate you from those who denounce binary options trading as gambling; simply because they are unable to master it themselves. The approach and planning is what really makes the difference to how you define this and your profit level.

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Can A Beginner Make Money With Binary Options?

But wait! First we have to see if binary option trading is legal in your country.

Binary Options Trading in your Country

Depending on your country, here are the brokers available to you in April, 2020:

*Other countries: Binary options is still available to most non-EU/US/AU/CA traders however there may be some exceptions.

• EU Traders are banned from binary options trading. The best alternative is eToro.
• US Traders should go to our US Welcome Brokers page.
• Australian Traders have a great choice available: Highlow.
• All other traders (if you are not from the US, EU and AU) can sign up with IQ Option.

Beginners think that all a trader needs to do is go on one hot streak!

New traders often say to themselves: “just ten wins in a row and all of a sudden I will be a new trading mogul”. People looking for quick money think, that they can quit while they are ahead on a hot streak and go home richer than they could possibly imagine.

The truth is that you need a strategy and discipline to make successful trades on the long term. You should start by picking a legit broker first.

If you are just starting out with trading, then this is the perfect guide for you to start making money with binary options trading.

Here is our #1 Rated Broker

IQ Option – Best Trading Platform

IQ Option is a trading platfrom that is regulated by CYSEC. It is the best trading binary options broker on our website. It’s a perfect pick for new traders.

• Trusted CYSEC Regulated Broker
• Minimum Deposit: $10 (Lowest In The Industry)
• Free Demo Account

How To Get Started With Binary Options Trading

Unfortunately binary options trading was banned in most countries but there are many more assets that you can trade: stocks, commodities, bitcoin, indices and more. There are many safe and regulated brokers.

You can start with a trading signals provider, especially if you are a beginner. FX Atom Pro looks really promissing.

1. Step1: Sign up with 24Option
2. Step2: Make a first deposit
3. Step3: Start trading using trading signals

Alternatively you can choose a reliable broker like IQ Option that offers free demo accounts.
IQ Option is the most trusted trading platform at the moment. They are regulated by CYSEC and they have a stellar reputation in the industry. The minimum deposit is only $10 which is perfect for beginners.

Forex Trading – The Best Alternative To Binary Trading

Binary options trading may be too risky for you. Or maybe you heard too many horror stories about binary trading? We recommend you to try out Forex trading instead.

Forex brokers offer CFD and even Cryptocurrency trading. Most Forex brokers are regulated and have been around for many years. Here is the best Forex brokers:

Rank	Broker	Min. Deposit	Regulated	Features	Review
$100	YES	+ CRYPTO TRADING	TRADE NOW
$200	YES	+ ASIC LICENSE	TRADE NOW
$200	YES	+ COPY TRADING	TRADE NOW Common Mistakes of Beginners- And How To Fix Them When a beginner goes in unprepared trading binary options, the broker will feast on them. New traders often make mistakes such as taking way to big a position for one trade, taking a bad loss, and then staying way to small the next 5 times. They may even experience winning easily on small trades, but they never make back the big loss. New traders take way too many trades, let emotions control their trading, and don’t have the self control to stay out of low percentage trades that they know have small chance of making them money. After knowing all the pitfalls, why would a new trader ever decide to open a binary options account and become a trader? Well, they do it because they have the power to win systematically if they have some intelligence and a plan on their side. A new trader needs to understand the most common pitfalls, otherwise they may not even know that they are making a mistake while they do it! With that in mind, here are the most common mistakes new traders make, with what they should do instead. Not taking every trade with a purpose. Beginners often find themselves taking trades based on a feeling, or out of boredom. This is a surefire way to make a broker rich. Never enter into a trade without a defined thesis as to why you are doing it. Think the trade over rationally before entering. Is your thesis really valid? Is it strong? What do you estimate the probability of winning given your experience? Are you hoping for the best outcome or considering the most likely outcome? Make every trade count. Letting emotion influence – when a trade is entered into, or how big the size of the trade becomes. Never let emotion influence your trading. Good or bad it will never help you. Trading is for cool rational thought, striving to systematically take profits. Taking way too big sized trades: Understand that you are going to have losses along the way. Even the best professionals do. Never let one trade significantly affect your account balance in a way that would affect your future trading. A good rule of thumb is never to take on a trade bigger than 1/15 of your total account value. With binary options I would recommend 1/20. Not learning from mistakes and repeating them over and over: Keep a trading journal as we have recommended before. Jot down a quick sentence or two whenever you learn something new. Do whatever you need to do to prevent yourself from repeating mistakes. Becoming frustrated and quitting right before you get good: The difference between making a lot of money systematically and losing money can be very narrow. Don’t let frustration keep you from realizing your ultimate goal. Understand that there will be lumps along the way, but there will also be victories, and the lumps make the victories feel so much sweeter. How Beginners Can Make Money Even with so many ways to mess up, beginners to binary option trading can make money if they work hard and follow a system. The key to binary options trading is to control risk. As a result, a trader can never lose too much money on any particular trade. Hypothetically, a trader has a 50% chance of being correct on any trade whether they buy a call or a put option. To make money, a trader only needs to be correct on about 60% of trades of the trades that they take. This means that of the trades that a beginner with absolutely no edge (an edge is something giving a trader a better than random chance to make money) would take, they need to figure out how to turn about 20% of them into winning trades. Binary Options – How Much Can You Make?: This is not a simple question. There are certainly traders who make a living with binary options. You could make thousands of dollars every month. However the best is if you start with lower expectations. Making hundreds of dollars steadily is a good way to start. Here are possible ways that any beginner can easily do this: Use a signalling service. While most are not are not going to give a trader a significantly better than random chance of making money, they still should tilt the odds into the trader’s favor. This is all any trader can ask for. There are paid services out there such as elite trader, but even a free service from a site like barchart can give you the edge you need. Learn to use technical indicators. Technical trading involves using strictly price action (price charts) to predict future movements. There are a lot of indicators out there, but some of the most common ones involve using moving averages. Examples of popular indicators are MACD, relative strength index, and bollinger bands. If you can find an indicator that works well for the security you are trading you can gain the edge you need in order to turn some of your would be losing trades into winners. Trade stocks before trading binary options. Stock trading is less volatile for a trader’s account than binary option trading as long as the trader does not use leverage and sticks to securities priced over $5. If you can figure out how to be correct on more than 50% of your stock trades, you can take what you learn and apply it to binary options to multiply your earnings power. Track your performance in each binary option security. Most people will be better at trading some stocks or commodities or currency pair than they are at others. The simplified reason for this is that each particular symbol will move differently than the others because each one has its own characteristics and traders involved in moving the price. If you find a handful of option trades that you are consistently profitable in, stick with what works and increase your size. You don’t need to waste your time and money on unprofitable trading. Buy the right option length for your trading style. Some trading styles will work better over very short term trades, and some will work better over trades held for a long time. Know your style and the appropriate length option you should buy. A value investor for instance would not be sensitive to price changes over a 1 minute option, but may be correct on a super high percentage of trades over a 6 month period. Binary Option Trading Is Not Easy For Beginners The problem with this dream is, how often does this really happen? Let’s just say a lot of brokers would never be in business if it happened very often that beginners made money. Above all, beginners have dreams of being smarter, better, and luckier than everyone else who has every done something, but the harsh reality is that trading in any form is not easy. Especially when it comes to making money from trading, it takes hard work, dedication, and a commitment to learning. And when I say learning I don’t mean just reading a couple articles, I mean actually learning from your wins, from your losses, from hard earned experience. As a result never take a trade and learn nothing from it, especially as a new trader. What Our Readers Asked The short answer is yes, you can make a lot of money trading binary options. However it will be very hard to do so if your initial deposit is low. Always keep in mind that binary options is risky and you could also lose money. A binary options broker makes money when you lose your trade. This is the main reason why there are not fees when trading. Yes, many traders have success with binary options trading. You can even follow some of these traders. In order to do so, pick a broker that offers social trading. This way you can pick your favorite trader and copy their actions. Do We Recommend New Traders Even Try Binary Options? Of course! Every successful trader was new at some point. Just because a lot of traders go into trading without educating themselves or having realistic expectations doesn’t mean you will as a new trader. In fact, since you are reading this article you almost decidedly will not. At How We Trade our job is to prepare new traders for success. So move forward knowing you have a strong ally in us! Interested in opening an account? Check out our homepage for the best trading platforms, along with our top rated binary options brokers. IQ Option – Best Trading Platform IQ Option is a trading platfrom that is regulated by CYSEC. It is the best trading binary options broker on our website. It’s a perfect pick for new traders. Trusted CYSEC Regulated Broker Minimum Deposit: $10 (Lowest In The Industry) Free Demo Account Best Binary Options Brokers 2020: Binarium Top Binary Options Broker 2020! Best Choice For Beginners and Middle-Leveled Traders! Free Demo Account! Free Trading Education! Big Sign-Up Bonus! Visit Broker Binomo Trustful Broker. Recommended Only For Experienced Traders! Visit Broker Like this post? Please share to your friends: Related articles Binary Options Basics 0 Zero Risk Trading Review Binary Options Basics 0 Zikalure Mining Reviews is Zikalure.com a Scam or Should I Invest Binary Options Basics 0 ZoomTrader Minimum Deposit Binary Options Basics 0 Option Rally Leave a Reply Cancel reply Name * Email * Website Comment Save my name, email, and website in this browser for the next time I comment.