Why do people who trade Binary fail in Forex? If you’re wondering that, here we have the answer for you. If you are a beginner we will briefly explain what binary options are.
It is a way of trading that started around 2009. It became very popular in 2012 and 2015. It is a way of trading that some people call gambling. Why? Because, for example, you have a price of an asset. Let’s say from Facebook. It’s at 300 and you say that in 10 minutes it won’t be 300. It’s going to be less no matter how much. And, if the price goes down in value you’re going to get the profit. If, on the other hand, the price goes up in value then you will lose the trade.
So, if you win the trade you will win 80%! That is 80 dollars! But, if you lose you will lose 100%. If you take the time to educate yourself, you can beat the market!
How does Forex work?
Now let’s talk about Forex. It is exactly the same market, but you play differently You don’t play for an expiry time, which means you can’t trade for 10 minutes.
In Forex you can decide. I am going to risk 1 dollar, for example. So, if the price goes up to 305 you will go out. But, if the price goes up to 290 then you will win. So, if you put 5 dollars as a difference. 10 dollars is a profit, meaning if you win the trade you earn 10 dollars. And, if you lose the trade you lose 5 dollars. It is a huge difference between binary options.
Differences between earnings in Forex and Binary
Profits in Binary Options are measured by the accuracy of your positions. This means that if you place ten positions and win seven out of ten you make a profit!
This is because you get a percentage of wins. So, if you win all 10 of these it makes a certain amount of wins. And, reduces the 3 losses you had. On the other hand, Forex is measured in the risk-reward you actually put in. There are many ways to trade, so it is one of the main differences between binary options and Forex.
Why do people prefer Forex to Binary?
Now here is the difference. Why do people jump from Binary to Forex? Because binary traders look for accuracy. In Forex they tell you “hey I have a 90% accurate Forex robot” or an accurate strategy or 90 Forex signals, that’s fine. In binary, it is amazing because you make tons of money. But in Forex people risk for example 50 dollars in exchange for making 10 dollars. They do it all the time.
What we mean is that no one has a 90% accurate strategy in Forex, 60 can be and is good. 30 is amazing if you have 10-1 risk and reward. That is what binary traders are looking for and that is why they fall for those ads that say “robot with 90% accuracy” is not true.
Make a trading plan!
If you want to be successful with Forex, you must follow a plan! Maybe it will sound difficult for you who are looking for fast money with Forex. You can go from 1 to 5% profit per month. The best thing in these cases is that you obtain a funded account if you do not have much money to invest!
What is important to know about funded accounts is that you can use them as leverage to earn money. This, with someone else’s money. This means that you can buy a funded account. Let’s say with 200 you can get 10,000 dollar accounts. Then you can convert that 10,000 dollars to 60%.
And, in a month or a year it would be approximately 66,000 dollars, and so on until you are doing 6 figures per year. All this is possible if you have a trading plan! The best and ideal is to operate on your own so that you start making tons of money. We want you to be clear that Forex is much more complicated, but less risky!
For this 2023, Cristian AP recommends that you jump into Forex. You have to learn this, it is not about how much money you have. It is about how your balance increases in your investment environment versus how much you lost.
The bottom line of Forex is that you lose very little and make a profit, it doesn’t matter if it’s 1% or 20%. So we invite you to take, to take the BLW academy, many of your questions will be answered there. And we mention it again, it’s 100% free.