is binary trading just gambling?

I was just looking at binary trading after seeing some flashy ads about it although I could see right through the b.s. sales pitches of being a 'millionaire overnight' blah blah blah. I looked into the subject more anyway and saw many people who seemed legit saying you can make some money doing binary trading online IF you work at it and understand trading trends etc. Even then you will lose money at times but your chances are higher of winning with some knowledge.

Many others say these binary trading sites also have replaced the poker online gambling sites and that binary trading is not trading at all and you are doing nothing more than placing bets. From someone here who is maybe experienced with it all.....is it more gambling than trading? how exactly would it work if it is trading and how would knowledge help?

If I was to commit some work towards it and be able to make a few dollars a week with it I would be happy. I really don't believe all these "make 10,000 dollars within a day!" nonsense ads but I am just in a dilemma as to what the truth is about what binary trading really is. Advice please.
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Comments

  • BryanMacBryanMac Posts: 851 ✭✭✭
    Bryan Mcafee
    Hit me up on skype at Brymcafee (McAllen TX)
    www.tradingaxis.com
  • lotzofbotzlotzofbotz Posts: 1,552 ✭✭✭
    edited March 2015
    For most starting out they have no knowledge and experience so yes for them it is nothing more then gambling. Only marketers or noobs will tell you how easy trading is and with their systems/indicators you too can be rich but only if you pay them or sign-up to the broker that pays them, we want action takers join now operators are standing by! Truth is its a job and takes a good deal of experience to do profitably day in and day out. Get a free demo account try some different free methods/systems and see if you can hold a consistent equity curve over time where you don't delude yourself into thinking you are a better trader then you are as most noobs will ignore empirical data that disagrees with the image they hold of themselves and stops them from every learning any really useful ways to profit from the market.
  • OkaneOkane Posts: 942 admin
    Binary Options is like most other things in life; you can
    approach it like if it was gambling and waste your money
    if you have too much of it or you are too lazy to learn and become a trader.
    Those binary options ads you mentioned, they are obviously exaggerated, but then again;
    which ads are not exaggerated? Glad you don't believe them...
    I just don't know why, when it comes to BO, some people
    suddenly think all ads should tell you the entire truth. I guess the promises
    of making millions overnight makes people stop using their brains lol.
    Like, Redbull does not make you fly, as far as I know.

    Yes, knowledge helps! But you can't gain knowledge overnight.
    Start learning and don't focus on making a few bucks per week.
    Focus on trading. Consider the money the prize
    for making good trades.
  • MukobulTMukobulT Posts: 2
    You could say so - if you are a beginner. But guys with experience would definitely say otherwise. It is science for them :D
  • lotzofbotzlotzofbotz Posts: 1,552 ✭✭✭
    worse its a JOB!!!
  • adezalfaadezalfa Posts: 2
    Binary option not gambling we can predict the price if we used correct indicator that can help us trade on the right time.

    The problem that make us loose we trade too greedy and continues trading when we loose.

    If we trade with patience and control emotion I confince we can make profit on binary option
  • MindelsonMindelson Posts: 5
    Anyone who considers the binary options as a casino game , sooner or later fail. It is not necessary to believe questionable statements to this effect . As trading in the Forex market , working with binary options involves serious training , and self-control.
  • fotulisfotulis Posts: 4
    In my trading I use technical analysis for reduce the risk. Since last weeks I take 30% profit.
  • LouwLouw Posts: 5
    I think it's all about controlling your emotions and making educated guesses. Forex trading is perceived as gambling by many people out there- doesn't mean it is.
  • dear123dear123 Posts: 83
    Since trading is a business of creating demands and supplying according to the demand, the prices will go up and down according to the intensity of demand and supply mechanism. So if you think you can make some good analysis of price while considering these two factors, you will buy it or eventually sell it and if all your predictions goes well you will make money or vice versa. However, if you treat it like gambling then you may not sustain in the market for a long time as luck never remains the same.
  • JhonyJhony Posts: 5
    dear123 said:

    Since trading is a business of creating demands and supplying according to the demand, the prices will go up and down according to the intensity of demand and supply mechanism. So if you think you can make some good analysis of price while considering these two factors, you will buy it or eventually sell it and if all your predictions goes well you will make money or vice versa. However, if you treat it like gambling then you may not sustain in the market for a long time as luck never remains the same.

    Good point
  • El_CuervoEl_Cuervo Posts: 3
    I you compare it with gambling, I think it's more a skill game. As a beginner without the necessary skills, like me, you will probably lose your money. So I have decided to read as much as I can, before I'll invest real money. Hope it's the best way.
  • john89oningjohn89oning Posts: 15
    Well, I wouldn't call it gambling... You have to have knowledge so that you could do it and earn money. Yes, it can be really risky but I, for example, play really safe because with more knowledge that I get, the more I know how to invest. So no, I definitely wouldn't call it gambling, just investing based on the amount of the knowledge that you have!
  • I completely agree I love the brokers I found here! http://www.binaryoptions.net/brokers/
  • suchiangsuchiang Posts: 63
    Binary option is small industry on the internet and is not safe to put money in binary options company because we dnt know what happened, after 2 or 3 year or may be 5 year to build your account .. as well you dnt know exactly , where this company come from and location as well Refulation or not . My best advise all the trader dnt use a broker from outside of your country . For example Fxcm come from united state if the office of this Fxcm have an office in your country then run . if fxcm dnt hve an office in your country dnt put any money . i say again dnt put any money .... Choose a broker from your country .. Thank & Happy Trader.
  • Beckz Beckz Posts: 30 admin
    Yes, and stick with regulated brokers.
  • The_Geek_MHThe_Geek_MH Posts: 444 mod
    Only thing is that FXCM is a forex broker, not a binary broker, the only US regulated binary broker worth your time is NADEX. It's true that regulated brokers are the best way to go but 2 things, regulated doesn't make them a good broker and non-regulated brokers can also be good... if you choose the right ones.
  • suchiangsuchiang Posts: 63
    ye ..Good to choose a Right broker and full regulation from outside country ... but the rule from one region to another is diffrent.
  • suchiangsuchiang Posts: 63
    edited July 2016
    Is binary trading just gambling?

    Yes , is Gambling ..Because you have to win 60 % above in order to make money ..if you bet 100$ and the broker pay only 70$ and where is the 30$ gone .. bet 100$ and pay only 70$. lol
    If you trade a large account size ,the broker will make more money than you.
    If you lost 3 or 4 trade you loose more than you win .

    In other word why binary option company is not regulation by (CFTC united stated), (FCA united kingdom ) and (ASIC australia ).
    and one things binary option industry ,They dnt have a international office like other broker .
    Mostly binary option industry are regulate by Cysec . ( if you dnt know about cyprus country do google search )

  • lotzofbotzlotzofbotz Posts: 1,552 ✭✭✭
    Gambling denotes a 50/50 chance or the inclination of trying to get lucky. This is not "TRADING" as trading is a skill and yes anything you do that can incur a loss by CHANCE would be considered a GAMBLE hence gambling. But trading is a skill and like any sport business or even picking up women, not all are unskilled gamblers some actually might be very skilled lol...
  • mikekibz180mikekibz180 Posts: 1
    Binary options is risky that's a fact and to some extent it feels like gambling but it isn't. i have been trading binary options for some time and i can tell you one thing is that you should always do your due diligence before you place your trade or you will end up losing everything. it is not like gambling where you depend on luck.
  • mrb23771mrb23771 Posts: 10
    edited August 2016
    Basically every trading instrument can become gambling, even a real estate agent can gamble. Binary option trading involves a probability factor, yes, but so does everything in life.

    Thing is, there is a huge difference between pure gambling and trading.

    Let's consider one of the most stupid things in gambling, people who actually think that statistics actually apply to a lottery. They work with hot numbers and they really think that choosing hot numbers has to do with increasing changes. That is so wrong. Why, because the change of actually drawing that number (the probability factor) is done with permutables. I don't care if a hot number is drawn 60000 times in a consecutive row, it really doesn't mean that the next draw the change is higher of drawing that number.

    Why? There is no cause and effect for that matter. The probability is pure the outcome of a mathematical equation.

    Now consider a sociology research. Let's say they find that poor neighborhoods have a higher crime percentage then rich neighborhoods. If I would argue that when I meet a person from a por neighborhood the change that he/she is involved with criminal activity is higher is quite right. Why? There is a cause and effect. If you are poor, have nothing to eat, you might end up stealing food, right? So there is a cause (nothing to eat) and an effect (person turns to crime).

    Of Course that doesn't mean that person has to be involved with criminal activity, but the change is higher. And the outcome of the probability factor is pure statistical.

    If you look at binary trading, let's say the EUR/USD as the underlying asset, there is a cause, huge economical markets.

    Still you can end up gambling, by not looking at the markets, ignoring fundamental and technical analysis. But that doesn't make binary trading gambling, it only says that you are gambling! Basically, there is no difference with a car trader that doesn't look at the technical state of the csr, the consumer need for the car and just wants to make profit, he's gambling. But car dealers seldom get the tag "gambling".

    There is a lot of gambling in binary options, but it's your personal choice. If you believe in "get rich quick" you might end up as a pure gambler. Maybe it works for you, but statistics have proven those people on the whole make other people rich instead of themselves.

    To avoid gambling, lower your expectations, learn learn learn, and be realistic!

  • suchiangsuchiang Posts: 63
    edited August 2016
    yes, is absolutely gambling ... broker binary option create a system for a trader to win 60% above.
    In order to make money . its just imposible to right all the time 60%..
    Remember - if you loose 3 or 4 trade some time 5 Trade in a row..you loose more than you win .

    Question - Why binary options broker dnt have an international office and All company binary option are private company ?

  • NightgardenerNightgardener Posts: 22
    Back in business school, my finance processors taught us that option trading was a sucker's game, a "zero sum" game, in which for every winner, there's a loser. That sounds very much like gambling, to me. This is one of the reasons why I always considered any kind of derivatives trading to be pure gambling. However, if I really think about this, I'm not so sure that trading binary options is too much different from "investing" in the stock market. If you're buying a stock that trades at high P/E multiples, you are in fact speculating, i.e., gambling. The stock is already selling at a higher price than what's supported by it's underlying assets, so you're gambling that the trend will move in your favor. I'm a BO newbie, but from what I've been able to assess from my few days of surveying this industry, I would guess that about 80-90% of people trading BO's are gambling, and that only 10-20% are in fact applying some true trading skills. Actually, the truth is probably that 80-90% are doing some combination of trading and gambling, and only 10-20% of traders have the discipline to really stick to a well conceived trading plan, including good money management. This is my impression, but please note that I've still yet to make my first dollar trading, so take what I'm saying with a grain of salt. The way I see it, if it's indeed true that for every winning trade there's a loser, then this means there's actually a lot of opportunity to be had! The fact that 80-90% of traders lose means that a person can educate themselves and perfect their trading skills so that they end up in the 10-20% who are not losing. I see a lot of opportunity in binary options, but for most people, it's going to be a losing proposition. That's not bad news, as far as I'm concerned. It's only bad news if I continue to gamble. The fact that people like to gamble is not my problem, the question I have to ask myself is whether I want to just gamble like they do, walk away, or invest the time and practice required to make this an actual skill with the odds in my favor?
  • NightgardenerNightgardener Posts: 22
    edited August 2016
    I thought about this some more, and would like to add: Of course the binary options field involves gambling. The whole premise of this thread is that gambling is a bad thing, but there are people making good living as professional gamblers. And, as for the rest of us, we do it every day, it's just a matter of odds. I go to work Monday through Friday, betting that my employer will pay me at the end of the pay period. I get on a plane, betting that the pilot doesn't feel suicidal that day. Yes, the probabilities are in my favor, but when the odds approach 50/50 then the outcome is not so certain, and perhaps this is what people mean by gambling. But it's really more like guessing, then, isn't it? Maybe the topic of this thread should be whether or not binary options trading is a lot like guessing, rather than gambling? Speaking of gambling, I've heard about how some gamblers would hang out for days at roulette tables in Reno and Vegas, making notes. They were looking for a wheel with a mechanical failure (not so common now, but more so in past years), giving them a slight edge over the house. That's all they needed to make a killing. Look it up and see if it isn't true. So even if I surmise to the idea that binary option trading is in fact some sort of gambling, it seems to me that if done right, with a modicum of analysis and strategy, it's a lot more than pure guessing. Or at least, it should be. But gambling, yes for sure it is.
  • suchiangsuchiang Posts: 63
    yes,off course trading is a zero sum game there alway have a winner and loose . To be consistence result we need to have a good money management.
  • mrb23771mrb23771 Posts: 10
    To the people who say that binary options is gambling because of the mere fact that you can't predict the outcome 100% them what would you call gambling? A supermarket branch is gambling big time then isn't it? Because in the end, even supermarkets encounter losses on items they wanted to sell with profit. Please get a grip on yourself, the fact that trade involves money exchange, involves probability does not make it gambling. In the end it's the trader himself who creates for himself a gambling way by not analysing and keeping a sound strategy to encounter probability in trading.

    This is utterly different then a gambling game, where from start you cannot influence in any way the probability of loss and win. And even betting systems, where you can look into cause and effect of probability, are designed completely different, geared towards loss of the participants. You cannot compare binary options with gambling and betting.

    People who compare BO with gambling or betting merely show ignorance, the same ignorance as beginning traders do who think they are guaranteed to make money. In the end, trading is what you make of it....
  • NightgardenerNightgardener Posts: 22
    Mrb23771, your example about the supermarket is a good one. I think that the people who say binary options are gambling are thinking more along those lines than actual casino gambling. It's all about the meaning we assign to certain words, and "gambling" can be somewhat ambiguous. I agree that trading binary options is not like going to the casino and betting on roulette or blackjack. Although there might be some skill involved there too, it's not comparable to the skill of someone trading (at least if they're doing it right, which most people probably aren't). I can understand if someone like you get offended by people referring to trading as gambling, but try to understand that they're not necessarily referring to someone doing it right, but to all the people who are trading with little or no skill at all. At least that's what I meant. Having said that, if I were to get good at trading and someone called what I'm doing "just gambling," I'd probably get pissed off and see them as ignorant. So I definitely see your point.
  • suchiangsuchiang Posts: 63
    edited August 2016
    i dnt know who are you ?.. but your sound like a broker who promote small industry company in the internet..
    and Most company binary options are scam ......
  • NightgardenerNightgardener Posts: 22
    Lol, are you talking about me, suchiang? I think you might be getting a bit carried away there, buddy....I'm a complete newbie and didn't even know what binary options were a couple of weeks back. But I know how it goes, just because you're paranoid, doesn't mean they're not out to get you! However, I'm not even sure if I completely understand what you're hinting at, seems like you're expressing 3 ideas in two lines of text....not sure what to make of it, so I'll chose not to be offended. In the meanwhile, you have my assurance that I'm not affiliated with any brokerage, the Central Bank or the Bildebergers. ;) I'm curious though, since you seem to be very critical of binary options trading in general, why are you spending time on this board? I see you have 58 posts, so you've obviously spent some time here?
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