We reveal the 5 biggest myths about binary options
Each rule has an exception, and the binary options market also has them. If, in the binary options market, all strategies worked in 100% of cases, it would be easy to trade, as some sites claim. All traders would be millionaires, and the number of market participants would have increased exponentially.
Unfortunately, there are those who profit and those who lose. Losers often blame everyone except themselves and spread all sorts of gossip and myths on the Internet.
We decided to find some of the most common myths about the binary options market and understand if they the fiction of losers or harsh realities.
To begin with, what is a myth? A myth is nothing more than a personal opinion about the situation after a mistake or failure.
Myth 1. The option is fiction not a real financial instrument
The stereotype that an option isn’t a real financial instrument emerged largely due to ads promoting the opportunity to earn 70% profit. Interestingly, this myth is mostly actively disseminated by competitors, banks and other financial institutions that can offer just 20-25% annually on deposits for their customers, while with options, you can increase your deposit by 25% within the first month.
When choosing where to invest, we first look at the future profits. 25% per year or 25% per month, what do you choose?
Myth 2. It is impossible to predict the risks
People mistakenly think that working with binary options is like gambling or, worse, "an attempt to fool newbies." There is another variation of this statement: "It is impossible to predict the risk.” For such claims, we can give only one answer: "The risks are limited by the investment, and you know in advance your profit and loss." As for the myth about the brokers, we can say one thing: It’s absolutely not profitable for brokers to deceive their traders because their main goal is the a long-term activity of their customers.
Myth 3: You can’t guess the price movement
Yes, it is impossible to guess, but you can predict the future price movement of a financial asset. To do this, there are many analysts, reports and ready-made forecasts. Using all the tools of binary options, you can speculate further price movement with 99% accuracy.
Myth 4. Anyone can trade
Part of this statement is not entirely a myth since anyone can become trader. However, not every beginner can become a successful trader without learning and knowledge. So, to paraphrase, "A good trader is only one who is willing to invest his or her time in learning the basic principles of trade and using them in practice."
Viewing various training videos, reading articles, and visiting online webinars are your basic tools of learning.
Myth 5. Trading binary options requires huge investments
As mentioned above, a trader doesn’t trade stocks, he or she trades stock options. For the real ownership of stocks, capital must be at least $30,000. To trade binary options, it’s enough to have $100; the amount is absolutely normal for those who know the market of financial instruments.