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The Truth About Binary Options – Legit Trading or Scam? - Modest Money

Binary options trading is legitimate, but incredibly risky.

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In reality, nothing can be farther from the truth. How does Binary Options Trading work? Simply put, binary traders try to predict whether the value of such assets will increase or decrease during a certain time frame.

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If your prediction comes true, you will win and earn a commission on your investment. Presented this way it becomes obvious that binary options trading is more like sports betting than real investing. Binary options is nothing more than betting on financial assets, really earned people on binary options like you would bet on the outcome of a sports game.

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So, is it a scam? The majority of binary options brokers are legit businesses. The problem is that the majority of brokers promise unrealistic expectations. The average user does not get results like these. The most common way binary brokers attract new traders is to show them cases where simple people managed to win huge amounts of money by just trading low amounts on gold and other popular assets.

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Sure, cases like that do exist, but they are the exception not the rule. However, this happens extremely rarely. Not knowing this, a lot of people sign up with binary options brokers that offer unrealistic winning promises.

In the end, lots of people end up losing all of the money they put into the system.

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But can you really win? The biggest factor in winning at binary options is LUCK. But yes, you can really win. The thing brokers will not tell you is that you will have to put in a how many bitcoins were mined of effort and research if you want to win consistently. And even then, luck is the most powerful variable. Like in sports betting, if you want to win you will have to have a great knowledge about the sport in question and about the teams that are playing.

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You will have to understand the game, the strengths and weaknesses of the teams, and the skills of the players. You will have to know about historical performance, fitness levels, injuries, and dozens of other variables. Even then, things might not go your way. If you factor in all these variables then you probably will win in the long run.

There are countless variables and risks that you will have to consider in order to accurately predict the future development of an asset. Issues like time of the year, state of the economy, political developments, economic performance of key market makers, recent business news and events are constantly influencing the movement of stock prices and commodities.

In order to be able to accurately predict the movement of an asset, you will have to be up to date with all of this info. Also, in order to be successful you will have to understand a variety of technical data as well, such as being able to read charts, use technical indicatorsunderstand statistic calculations, and much more. But that sounds hard!

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Yes indeed! In order to really make money you will have to invest significant amounts of time in market research and learning about the technical aspects of this business. No matter what anyone promises, you will never be able to make easy money by placing random bets here and there. Brokers count on you doing exactly this because they know that this way, you will be paying the price of becoming a losing trader meaning brokers will be making money off of you.

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So, this is the truth behind the binary option business. So one more time, is Binary Options Trading a Scam?

Hedging, stop losses and risk management. How to fix losing trades Choose the right assets for you When first signing up to a binary broker, keep in mind crypto rate you should be on the lookout for a reliable and trusted broker which offers a large number of assets which you can choose from and place your investments. However, if you already have certain experience in the field, or you have been researching about binary trading about certain assets only, then keep your focus on that. You may not have the practical experience of how to trade with these assets, but you certainly have a basic know-how which can come in handy when you are starting with your investments.

But that was back in Things have changed quite a bit since then. As mentioned above, there is still no easy shortcut to binary options trading success — you will still need to learn the basics of this trading form and do lots of market research to make real money.

That said, some new developments have appeared in the industry which might make it easier for you to make a living through binary options trading. More Welcoming To New Traders For one, social trading has finally become a major aspect of binary options trading.

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Newbies who would like to start making money without having to fight against a gnarly learning curve can look to the practices of seasoned veterans. Some brokers even offer in-house social trading platforms that let you profit from the trading experience of highly successful binary option traders within the company. Of course, there is the risk that the trader is going to fail, in which case you risk losing money just the same.

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So, you will have to choose your signal providers very carefully to avoid disappointment. We now have binary options robots as well, which purport to automate winning trades for users.

Unfortunately, many of these bots are scams, which is why you would be better off avoiding them altogether unless in cases where your broker is offering their own auto trading services. Even then, you cannot really count on a broker to give you a highly profitable automated trading tool. Why would a broker give you the tools to take their money? You will have to do your own research first to see if the auto trading system is worth its salt. And should you choose to use an independent binary trading robot company, you will have to be extra vigilant to avoid getting scammed.

More Tools For Advanced Traders It really earned people on binary options easier to access quality financial information needed to make intelligent trading decisions than it was two years ago.

Premium binary option brokers now have great platforms that provide excellent data for comprehensive technical analysis on the assets you are trading, helping you to make better trades.

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Additionally, there have been cases of brokers introducing robots that scour financial newswires, giving you the latest events so you can anticipate market fluctuations.

All these advancements make binary options trading easier for people willing to put in the time to learn the system inside and out. Still Legit? Yes, binary options is legit, and growing. But you will still have to jump through lots of hoops to make it in the industry as a beginner.

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At the same time, we now have a broader selection of trustworthy brokers and signal providers than we had a few years ago. Furthermore, better information and technical analysis makes the industry more lucrative for dedicated users.

Even so, you will have to be a lot more watchful of who you get into bed with when entering the industry to keep your money from falling into the wrong hands.

Note from Kalen: This article is for informational purposes only.

If you are willing to put in the work, learn through trial and error, and develop better methods than the average binary options trader, you can actually make money with binary options in Find out which brokers you need to avoid.

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