Binary Options is Not an Investment – Though, it is not a Scam either. You won’t get rich with it – easily.
The only problem with Binary Options is that, the advertising about B-Options will get you rich is not true. – that is where the scam is. Not the Binary Option itself. Get it?
If you have my ebook “Living Successfully in the Philippines”, you will be informed to reject the sweet smell of “financial worry” this binary options could induce. Like I said, It’s not a scam, but nobody said that you will not lose money doing it. It’s just False advertisement guys, don’t believe it easily.
So what is Binary Options?
Binary Option is actually a financial option (contract that gives right but not obligation) where you use your funds for an expected profit or none at all.
Problem about this option is that, you usually lose more money than what you can gain – some are actually scams too. Though the majority are legit, the amount of money that you lose is not substantial than what you can earn. Hence most countries define Binary Options as gambling because of its volatility.
Often you use an investment platform (software), and then you put your funds into to trade. If you think that the currency of your bid will be above a certain price at a set time, you buy the binary option. If you think it will be below that price, you sell that option. Sounds easy? Yes!
But very risky, because, the same as FOREX TRADING, the chances of receiving favorable results are so fickle and random – that’s why it is more of a gamble than an investment.
So it is not an Investment?
Technically, No, It is not. An Investment is defined as an asset that you could liquidate but could also be a long-term asset, in case you lose funds or you need emergency finances you could use it. Binary Options does the opposite – it drains you of it.
Just using it as a bridge to further your investment tends to backfire to your finances rather than create profit value because of the “high risk/loss” chance once you got into it. Some become successful, but did you know that 80% of the people who does B-options lose money or even all of their savings.
But I want to Invest!
There are better alternatives. Here in livinglifeph.com, we do not condone investments that could provide haphazard financial future. That’s why I recommend that you invest in yourself first by reading my Ebook “Living Successfully in the Philippines by Jay Penn”
As per my ebook, I highly suggest to invest first in Trust Funds or Time Deposits, and then once you have done your research, start doing Stocks and the likes. You could also do real estate investment (condo, houses…etc) or even start a business. But Binary Options is very risky due to its nature and volatility. I do not suggest it – if you do not have any investing experience.
So, have you done it?
Actually did, and I lost a lot of money. Due to some legal constraints, I can’t say the name of the company but to tell you the truth, Binary options are almost identical with FOREX Trading. You lose a lot of money than what you can earn. I am not saying you will not earn; just not a lot, because you will lose a lot more that what you can/may gain. Period.