It seems for every type of trading there is somebody somewhere willing to take you for a ride. It’s obvious to see why, people like getting something for nothing. Who wouldn’t want to spend his time on the beach watching the world go by while your computer works at home making you millions.
So when binary options first appeared a few years ago it didn’t take long before someone developed a nice little scam to relieve you of your hard earned cash.
Soon these started to propagate and other binary option scams were released selling trading software that magically predicts the markets next move, or unproven trading plans that cost you $50. Its little wonder people think binary options are a scam.
But binary options are a legitimate way to make money; they’re not suitable for everyone that’s for sure. If you’ve traded for a few years you’re not going to be excited by what binary options have to offer.
But if you’re a beginner they’re perfect for learning the ropes without having to invest significant amounts of capital. They’re easy to learn and don’t require constant monitoring of the market, so they’re perfect for those of you that have to fit trading in around a full time job.
How to Avoid the Scams
S how do you spot a scam? With so many people out there looking to rip you off it’s a good idea to learn how to spot a scam when you see one.
First of all there’s enough information available on the internet for FREE that will help you develop a profitable strategy and learn basic money management skills. There is absolutely no need to pay someone for a magic bullet system, believe me they don’t exist, if someone wants to charge you money for their system, walk away.
I’m sure you’ve seen those paying for signals services, some of these services are good and some are bad, but none of them will help you become a better trader. Being spoon fed signals isn’t going to teach you anything about money management or entry and exit points.
In my experience if you want to be a successful trader you have to learn how to trade yourself. You need absolute faith in your system long term, and the only way you can have that is if you have intimate knowledge about how it works and why.
All systems no matter how good they are go through bleak periods. If you’re trading somebody else’s signals and you go through a rough patch you’re going to abandon it and look for another signals service and you’ll keep on going around in circles until you realize, the only way to trade profitably in the long term is to use your own signals.
Developing a strategy is not only cheaper in the long run but you can keep tweaking it until it becomes even more profitable. And like I said there is no shortage of specialist books and websites that will help you build a profitable strategy, you’ll also find it much more satisfying trading your own signals. Just don’t go thinking you’re a trading God, because then you really are in trouble.
The basic rule of thumb for avoiding scams is, if it sounds too good to be true it probably is. There are no short cuts, no magic bullet system and no Holy Grail. You can succeed at binary options trading but it’s going to require a bit of work, work that will stand you in good stead for many years to come.