Skip to content

2

There are so many Binary Options platforms out there and most of the Binary Option claimed that you can use that to get rich fast!!!.

The platform is cashing in on the human greed to lure people to the platform basing on the basic human desire of Who Does Not Want To Get Rich.

How many people have been using Binary Options and learned a painful lesson that they will never forget?

There are Binary Options who claimed you can make a lot of money and easy to get your investment back.

FREEBIE IN BINARY OPTION

Some Binary Options even provide one for one investment, that is if you invest USD $2,000, they will top up the account with USD $2,000 and you have $ 4,000 Capital to trade using Binary Option, however the platform administrator did not tell you at that time if you take the option of getting the free top up, you are not able to withdraw your initial Capital until you make certain numbers of transactions.

In the internet, there are so many advertisements about Binary Option and video showing how people have made a million within a short time using the same actors or actress to lure you to believe this is THE WAY to make money.

photo by Chee Shi

WHAT IS BINARY OPTION?

According to Wikipedia definition

"A binary option is a financial exotic option in which the payoff is either some fixed monetary amount or nothing at all.[1][2] The two main types of binary options are the cash-or-nothing binary option and the asset-or-nothing binary option. The former pays some fixed amount of cash if the option expires in-the-money while the latter pays the value of the underlying security. They are also called all-or-nothing options, digital options (more common in forex/interest rate markets), and fixed return options (FROs) (on the American Stock Exchange).[3]"

so in layman term, it is a yes or no, and head and tail type of game, it is like a game of chance, right or wrong.

When you want to find out more about the platform, initially the customer service is so friendly and helpful, but when you are winning using the Binary Option, they will have people making calls to you to show you how to make more money and encourage you to trade more and in no time, you find out your winnings are gone and then they will call you to put in more money and tell you again if you put in USD $5,000, they will top up USD $ 5,000 and here you are, you have now USD $ 10,000 to trade.

What Are Offered In Their Website?

Some websites even offered training on trading of binary option and claimed to provide good trading support, some even claimed to offer good tips and sure win trade if you pay certain amounts of money.

Therefore I would suggest if you really want to trade binary option, do so with the local platform where you can meet the administrator of the platform in person and understand more about their operation, even that also may not be good enough, however do trade with good conscience.

DO YOU KNOW WHO YOU ARE DEALING WITH?

The main issue is -- the trader does not know who he is trading with and how many players/traders are involved, for all you know, you may be trading with the platform's software and being manipulated by them and what you see on screen was supposed to be the real trade in the financial market, but there could be some lag in the data which indicated you may be trading with the platform back end who is just eating up your money/capital slowly.

WHAT HAPPENED IF YOU GUESSED RIGHT AND WIN?

If you happened to trade right and win, then the customer service will call you the next day and tell you to trade more or play more, depending on what you are trading, whether it is forex, stock, indices or metals and someone will call and tell you that they have some research done and good time to do certain trades and they would guide you and so on.

The next thing was you realize your winning were gone after a few trades and as the trades were for few minutes, so you would know your trade results within minutes and then they would call and said you should bet in certain amount as the probability was higher with higher amount and so on.

WHAT HAPPENED IF YOU WANTED TO CASH OUT YOUR WINNINGS?

When you called or log in to your account and indicated you wanted to withdraw your winning, you would not get any reply at all and when you called or emailed them, you would be informed that since you had taken the top up from the platform, you were not able to withdraw as you had not done enough trade transactions

They would ask you to continue trading and you soon knew the game was a scam as there was no chance you could win as it was just a program set up by them to ensure you put in money and so on.

Are Binary Options Regulated?

If you go to their websites, you would notice that they claimed they were regulated and they even offered you to check their credential with the relevant authorities, however, if you really check and read the reviews by some other who always monitor the scam and fraud, you would find that a lot of them are really scam and operated by some fraudsters who hide behind the internet and computer to thrive on human nature of greed of money and get rich quick.

Conclusion

If you really want to trade, do so with the local platform where you can meet up with the administrator and the company and understand their operation and get some assurance and check with the local relevant regulatory authorities.

If you are not well versed in financial market, do stay away from this instrument.

It will be better to trade in something which you know well instead of looking for some quick short term gain.



If you have any questions or wish to share your experience on this topic, please feel free to leave your comments, questions and your experience in the feedback space below and I would be glad to get back to you and thank you for your feedback, comments and sharing of your experience.

Please follow and like us:

7

Value Investing Review - The Best Way To Invest To Gain Financial Freedom

To have a good retirement, one of the things we need to do is to have a good investment plan.

A good investment plan is needed to ensure we have sustainable and steady income while we enjoy our retirement.

There are so many investment methods and plans in the market and we are sure to have been approached by financiers, insurance plan sellers, private bankers and so on various investment plan and methods.

What is investing?

Investing can be investing in assets, properties, stock and some other types of financial instruments which add value to our initial capital.

Why do we invest?

Normally we invest to earn some extra income from the assets we put our money in or any target we are aiming to have a good return.

We should have some predetermined target and returns for our investment before we decide to invest our money in the assets.

Majority of the people will invest in stock and financial instrument readily available. However, we must be wary that in everyday life, whenever we meet up with friends for some casual chats, we will notice most of the time, the conversation will be centered on how much certain people have made in the stock market today or the day before or last week.

It brought to the question on whether it was investing or trading of stocks in the market.

What Is The Different Between Investing And Trading

Investing is about building of wealth over an extended period of times through the buying and holding of stocks, bonds, mutual funds, REIT or any other financial instruments, normally this is done with the aim of taking advantages of the dividend, interest and bonus issues of shares over a period of times. 

People who are investing will rely on the market fundamental of the stocks and the performance of the companies invested in.

Whereas in the case of trading, it is a more frequent buying and selling of stocks, bonds, mutual funds and financial instrument. The goal is to outperform the buy and hold investing and may set a target of certain percentage of return per month and per year

We will notice most people in stock market are actually doing trading and not investing as investing tend to be slow to see the results and people may not have the patient to see through.

The irony of this is the successful investors who are in the market are the one who are doing investing instead of trading and to value investing is one of the method most successful investors used to grow their wealth.

What Is Value Investing? 

Value Investing as defined in Wikipedia is an investment paradigm that involves buying securities that appear under priced by some form of fundamental analysis.

Value Investing was first taught by Benjamin Graham and David Dodd and they stated that to value investing had three main characteristics of financial markets:.

  1. The prices of financial stocks are subject to significant movement.
  2. All the financial assets have underlying or fundamental economic value that are relatively stable and which can be measured with reasonable accuracy by any investor who is very good and follow strictly with set of investing rules and relying on intrinsic value of the stocks.
  3. A superior returns in the long run will show it is a good strategy to buy stocks when the market prices are much below the intrinsic value of the assets.

Why do I recommend you to learn to value investing with Value Investing College?

I recently attended a course conducted by Value Investing College over one weekend which is a boot camp of three days.

In the boot camp program, the trainers taught us on what were Value Investing and how to make use of Value Investing to growth our portfolio of investment.

The strengths of Value Investing College

  1. The boot comp taught the participants on the concept and theory on Value Investing.
  2. They gave a systematic method of using the Value Investing steps.
  3. They also taught on personal money management skill.
  4. Bootcamp also taught us on Economic MOAT of a stock.
  5. The Bootcamp covers the P.I.E.C. Analysis whereby we learn about profit, income of cash, efficiency and conservative approach in investing.
  6. The next subject we were taught was R.I.S.K. Analysis where we were looking at regulatory risk, inflation risk, science and technology risk and key people risk of the potential company we wanted to invest in.
  7. Other subjects covered in this course included valuation methods, management team assessment, how to identify the stocks/companies, portfolio management.
  8. The final subject which we would learn was on Value Investing Options Strategy

from the above subjects which were covered during the three days course, there were a lot of exercise and team discussion and play to actually worked through the theory learned and understand the underlying concept.

The trainers were very good and clear in their presentation and the course materials were very informative, clear and concise, easy to understand and grasp with the concept.

Even for those without any finance and investment technical background, it was not an issue because the course was conducted in such a way, a layman would understand easily and benefit from the boot camp.

Value Investing College also allow those who attended the boot camp to attend any subsequent boot camp without any charges, if the participants felt that they needed to have continuous learning, they were welcome to attend the boot camp again, they only needed to take care of their meals during the three days.

Value Investing College is also a lifetime learning college, once a person attended a boot camp, he or she would be a member of the college for life and would be able to tap on their support.

The disadvantage of Value Investing College

The only disadvantage I could think of is if you are a day trader or technical trader who prefer to have short term profit and relying on technical analysis of the price movement and the chart, then Value Investing College may not be the place for you to learn how to invest.

The fees may be a bit costly for someone who intends to start doing investment, however, if you think of it as a long term investment itself from the knowledge you will gain from the boot camp and the lifetime support the college provide, The investment you make in attending the course will be the best investment you have ever made.

For anyone who wants to learn investment, I would recommend attending the boot camp conducted by Value Investing College and be a lifetime member to benefit from it and happy investing. 

This is one of the way to earn sustainable income for retirement which is through value investing.


Please follow and like us: