or Connect
HotStockMarket › Forums › HSM Stock Forum › Trade Journals & Stock Tips › SportsMavin's binary trading
New Posts  All Forums:Forum Nav:

SportsMavin's binary trading - Page 12

post #221 of 1205
Thread Starter 

Ok, so part 2 would begin with like: since you have no real knowledge what future bears and everything is an educated guess..... No. Just kidding.

Higher an expected reward - higher the risk. That never changes. That is a law of the nature So from my very simplified perspective - if you can apply the same knowledge that you apply for low risk low reward trading system - for high risk high reward trading system - and be successful in a long run - why bother with low risk low reward trading system? In other words - if you know your market well enough to apply that knowledge to a traditional trading on the stock market - why not apply the same knowledge and be successful in trading Binary Options? I mean - while trading traditionally - you're investing only when you are convinced that the price of the asset you invest in will go up. Right? No one invests for the price to go down as you would lose the money. So, in order to be successful in traditional trading you have to know the direction the market is moving or your specific asset is moving> Now if you're good in that - why not apply the same knowledge and expertise to Binary Options trading as it is exactly twice as easy (I will explain why) and carries much much higher rewards. Twice as easy because in Binary Options trading you can invest not only on one direction which is up (Bullish), but also can invest in Bearish positions meaning the price of the asset will go down. Again - in a traditional marketing you have only one direction to enter the market for - UP. In Binaries you can take UP (CALL) or DOWN (PUT). If the asset moves in the direction you chose in a preset limits of time (Expiry Time) - you're profiting preset percentage of 70% to 78%. So, if you were good enough to know which direction the market or an asset were moving and had only 5K to invest - in traditional trading you'd make few percents on it and may be even 20% and that is it. In Binaries the same money and the knowledge would grant you set profit of 70-78% no matter how big was the move since the moment you took the trading position. 

Digest it, ask some questions if you have and the part 3 is on the way.

post #222 of 1205

it seems like time is very important in binary options... wonder if they have binary options that expire weekly or monthly?

 

very cool that you can make money when it goes up or down... but can't you do that with other instruments as well?

 

Quote:

Originally Posted by SportsMavin View Post

Ok, so part 2 would begin with like: since you have no real knowledge what future bears and everything is an educated guess..... No. Just kidding.

Higher an expected reward - higher the risk. That never changes. That is a law of the nature So from my very simplified perspective - if you can apply the same knowledge that you apply for low risk low reward trading system - for high risk high reward trading system - and be successful in a long run - why bother with low risk low reward trading system? In other words - if you know your market well enough to apply that knowledge to a traditional trading on the stock market - why not apply the same knowledge and be successful in trading Binary Options? I mean - while trading traditionally - you're investing only when you are convinced that the price of the asset you invest in will go up. Right? No one invests for the price to go down as you would lose the money. So, in order to be successful in traditional trading you have to know the direction the market is moving or your specific asset is moving> Now if you're good in that - why not apply the same knowledge and expertise to Binary Options trading as it is exactly twice as easy (I will explain why) and carries much much higher rewards. Twice as easy because in Binary Options trading you can invest not only on one direction which is up (Bullish), but also can invest in Bearish positions meaning the price of the asset will go down. Again - in a traditional marketing you have only one direction to enter the market for - UP. In Binaries you can take UP (CALL) or DOWN (PUT). If the asset moves in the direction you chose in a preset limits of time (Expiry Time) - you're profiting preset percentage of 70% to 78%. So, if you were good enough to know which direction the market or an asset were moving and had only 5K to invest - in traditional trading you'd make few percents on it and may be even 20% and that is it. In Binaries the same money and the knowledge would grant you set profit of 70-78% no matter how big was the move since the moment you took the trading position. 

Digest it, ask some questions if you have and the part 3 is on the way.

post #223 of 1205
Thread Starter 

it seems like time is very important in binary options... wonder if they have binary options that expire weekly or monthly?

 

very cool that you can make money when it goes up or down... but can't you do that with other instruments as well?

Originally Posted by charulz View Post
 

Yes they do up to 3 months. This is a best instrument. Have a short flight to catch and will talk to you guys in an hour or so.

post #224 of 1205
Quote:
Originally Posted by SportsMavin View Post

What I wrote so far can be considered as Part 1 and Part 2 is on the way. I am going to explain precisely about the risks and about rewards as well. If you think that I am trying to "lure" someone into something unrealistic - you dead wrong buddy.On the other note - your input on Futures will be great especially education wise for a regular viewer so you can explain how futures differ from forex trading. (Don't laugh - I found lots of similarities that Forex platform operators copied from futures trading )

 

I'm simply saying to focus on the risk, not the reward and somehow you're getting that I think you are trying to "lure" someone into something unrealistic. Interesting...

The part about being realistic was that 90% of traders lose at this game. That's a fact. 

So we shouldn't go about this like "oh hey, I'm making this much money. Look at me. Everyone can do it as well".

That's as far from the truth as possible. So again, I'm putting the facts out there and reminding everyone what they should focus on...Risk, not Reward. 

post #225 of 1205
Thread Starter 
Quote:
Originally Posted by IchibomB View Post

 

I'm simply saying to focus on the risk, not the reward and somehow you're getting that I think you are trying to "lure" someone into something unrealistic. Interesting...

The part about being realistic was that 90% of traders lose at this game. That's a fact. 

So we shouldn't go about this like "oh hey, I'm making this much money. Look at me. Everyone can do it as well".

That's as far from the truth as possible. So again, I'm putting the facts out there and reminding everyone what they should focus on...Risk, not Reward. 

My answer was warranted by the nature of your previous response and like always - as harsh as some of my answers might look - they're done with utmost respect. Now, when you say that 90% of people lose on Binaries - what you base your numbers on? I am long enough in the binaries and didn't see any source that can supply exact information as how many people are losing and how much as well as how many are winning and how much. You know very well that those stats can't neither be found because not all the companies are regulated and even those regulated are not obligated to report so what you said is a wild guess and the same could be said about any kind of trading. Including the most traditional form. Please, if we are going to have to discuss the matter seriously - try to avoid generalizing the companies as well as people because I am trying my best to educate ones who are already trading how to do it the safest and most profitable way and those who still didn't decide what tools and facilities to chose to trade with - to give them the most up to date and unbiased information available. And those who are already trading binaries can decide for themselves if what I provide and will provide in form of signals and advise - is good enough and trustworthy. No one can say that either of those have not been top notch and I will continue to deliver top notch signals and information as well as advise as long as I will feel that I am fully focused and up to it.

I don't know why you're saying what you're saying and then denying the meaning of what you say. If you're protective of some who you think that are not smart enough to make right decision you already are saying that the right decision is not taking up my advises and when I say that I am not trying to lure anyone you go like - Daaa? What do I mean? Interesting. Come on IB, we both know little better than that. I am trying to help those who trade binaries to do it right and those who want some info about it - to get some here. There's nothing wrong with that.

post #226 of 1205
Thread Starter 

As I already stated in above part 1 and 2 of this article, higher the risk - higher the rewards. At the same time - if you already are using some skills and are successful with low risk low reward trading systems - and the knowledge and the skills you already possess can be instrumental in Binary Options trading system - why not to use them for higher rewards? If you're good at low risk and making money - the meaning is that under the same circumstances trading the same assets - your chances to be successful do not diminish only because the rik factor and reward factor change.

post #227 of 1205

Again, there's really no risk management in Binaries.  You can't set a stop loss, scale in/out, turn it into a spread, or sell contracts against it while it struggles.  That is why it's so important that whomever is trading this particular instrument knows WTF they're doing.  

 

One cannot build wealth simply by relying on some random internet guy's buy/sell cues.  That's called building "dependence", which makes whomever is following this thread completely reliant on you.  There's no need to draw this out over weeks and months trying to build up the mystique before the curtain is dropped to reveal Oz.  It sends a conflicting message.  That is why in my opinion I think it would set a better precedent if you start shifting into the nuts and bolts of what you're doing .... gracefully, step-by-step.  After all, you said you're hear to help people.

post #228 of 1205
Thread Starter 

For an example in a last trade on this thread that was done by Phixer was on Gold which won. He invested 1000$ on Gold price to drop. He took the PUT position on Gold with expiry of 22 hours later. The price of Gold was 1,456.625$ for troy ounce at the time the position was taken. By winning he would gain 76% and if lost would lose 95% of his investment of 1000$. He ttok that position based on high probability that Gold would drop and was supported by all the experts on stock markets around the globe. The trade won as Gold price dropped to 1,433.825$ for troy ounce when the position expired. That was a great win as the drop was decisive showing that Phixer and the experts were right. He made 760$ on that trade. If he would have traded the Gold in a traditional way - he would have to invest over 33000$ to have the same profit!!! Now if you have that kind of money to invest and are OK with 760$ profit on that - fine, but how many people you know that have ten times at least that 33K available (money management is the key and risking more than 10% of your bankroll is never recommended for a single trade in any trading system) multiplied by 10? And will the person with 330K be satisfied with 760$ gain?

post #229 of 1205
Quote:
Originally Posted by SportsMavin View Post

For an example in a last trade on this thread that was done by Phixer was on Gold which won. He invested 1000$ on Gold price to drop. He took the PUT position on Gold with expiry of 22 hours later. The price of Gold was 1,456.625$ for troy ounce at the time the position was taken. By winning he would gain 76% and if lost would lose 95% of his investment of 1000$. He ttok that position based on high probability that Gold would drop and was supported by all the experts on stock markets around the globe. The trade won as Gold price dropped to 1,433.825$ for troy ounce when the position expired. That was a great win as the drop was decisive showing that Phixer and the experts were right. He made 760$ on that trade. If he would have traded the Gold in a traditional way - he would have to invest over 33000$ to have the same profit!!! Now if you have that kind of money to invest and are OK with 760$ profit on that - fine, but how many people you know that have ten times at least that 33K available (money management is the key and risking more than 10% of your bankroll is never recommended for a single trade in any trading system) multiplied by 10? And will the person with 330K be satisfied with 760$ gain?

 

There are many different ways to trade gold.  There's gold futures and the GLD options which one can make good money on, which would not require anywhere close to a $33,000 investment.

post #230 of 1205
Thread Starter 
Quote:
Originally Posted by Rock Sexton View Post

Again, there's really no risk management in Binaries.  You can't set a stop loss, scale in/out, turn it into a spread, or sell contracts against it while it struggles.  That is why it's so important that whomever is trading this particular instrument knows WTF they're doing.  

 

One cannot build wealth simply by relying on some random internet guy's buy/sell cues.  That's called building "dependence", which makes whomever is following this thread completely reliant on you.  There's no need to draw this out over weeks and months trying to build up the mystique before the curtain is dropped to reveal Oz.  It sends a conflicting message.  That is why in my opinion I think it would set a better precedent if you start shifting into the nuts and bolts of what you're doing .... gracefully, step-by-step.  After all, you said you're hear to help people.

I am doing exactly that Rock. Step by step . First explaining all the risk factors involved and money management embedded within. Then the nuts and bolts. But in order to do that I have to focus on that. Instead I am busy explaining that "I have no sister" like my Israeli friend likes to say.

post #231 of 1205
Thread Starter 

Ha Ha , I will elaborate on that sister thing before feminist among you will attack me on that as well. My friend says that in Israel when someone is accused that his sister is a whore - nobody listens when he tries to defend himself  explaining that he has no sister at all.

post #232 of 1205
Quote:
Originally Posted by SportsMavin View Post

I am doing exactly that Rock. Step by step . First explaining all the risk factors involved and money management embedded within. Then the nuts and bolts. But in order to do that I have to focus on that. Instead I am busy explaining that "I have no sister" like my Israeli friend likes to say.

 

Well you got that out of the way ..... I think it's been made very clear what you can win/lose in a trade, as far as %'s go ..... and you needn't do anything but put up a disclaimer on the first post of this journal reminding people never to risk money they can't afford to lose or invest more than 2-5% of their capital base at any one time.  That's it as far as "money management" is concerned with binaries and I pointed out why.  

post #233 of 1205

Binary options trading requires a different mentality from traditional trading. Traditional trading you're worried about when to enter and when to exit. You're worried about how much you're willing to lose and how much you want to make. Binary options are like betting on sports. You can use what you know to make trade decisions but you have to be okay with losing all of your money. That's not something that traditional traders can handle mentally and it's much easier for emotions to take over when the risks are so much higher. Since Mavin and his followers are from a sports cover site, they must have found binary options to be an easy transition from sports betting.

 

With that said, binary options brokers are all chop shops so more people have to lose money in order for them to stay open. That's what the "90% people lose their money" is referring to. More people have to blow their accounts for you to make money (same applies with sports books).

post #234 of 1205
Thread Starter 
Quote:
Originally Posted by Rock Sexton View Post

 

There are many different ways to trade gold.  There's gold futures and the GLD options which one can make good money on, which would not require anywhere close to a $33,000 investment.

Ok, so if you think those future options are less risky - why don't you explain all the way? I will prove to you that trading gold futures are way more riskier that Binaries. And less profitable.

post #235 of 1205
Thread Starter 
Quote:
Originally Posted by chhansen View Post

Binary options trading requires a different mentality from traditional trading. Traditional trading you're worried about when to enter and when to exit. You're worried about how much you're willing to lose and how much you want to make. Binary options are like betting on sports. You can use what you know to make trade decisions but you have to be okay with losing all of your money. That's not something that traditional traders can handle mentally and it's much easier for emotions to take over when the risks are so much higher. Since Mavin and his followers are from a sports cover site, they must have found binary options to be an easy transition from sports betting.

 

With that said, binary options brokers are all chop shops so more people have to lose money in order for them to stay open. That's what the "90% people lose their money" is referring to. More people have to blow their accounts for you to make money (same applies with sports books).

My friend - so far historically - the traditional stock markets have proven to be greatest chop shops and biggest con artists made people to lose more money than one can imagine. What are you exactly talking about when calling legit regulated binary options houses who trade against the liquidity providers a chop houses? Open your eyes and look into most recent history.

post #236 of 1205
Quote:
Originally Posted by SportsMavin View Post

Ok, so if you think those future options are less risky - why don't you explain all the way? I will prove to you that trading gold futures are way more riskier that Binaries. And less profitable.

 

Futures and options are two seperate instruments ..... although they do have futures options now too, but I haven't even looked into them.  Somebody from the website I ran trade the copper ones.  

 

Lemme give you an example.  The 139 monthly puts on the GLD etf were selling for almost 1.00 a piece on the open of the 9th.  They even got as low as .80 that day.  At the peak of the move on the 10th (first 2 hours of that session), they went to 3.00 ...... Theoretically one could've bought 5 contracts (total $500 invested), made $1500, and kept a stop loss of 20-30% ($100-$150).  Either way the potential to make MORE money was there, risking far LESS.  I mean hell, the person could've invested only $300 worth and made more money than Phixer did.

post #237 of 1205
Thread Starter 

BTW I came to sports handicapping from financials and not the other way around. Now I try to utilize the experience gained to integrate between the two. And  - yes - I am doing pretty well and so are many others who grew into this together with me. I agree with chhansen that your acceptance of Binary Options causing you mentality conflicts as you're used to more laid back style of trading. But I assure you that it is exactly the same thing and those who have the character strong enough to coup with trading in general and trading short terms in particular - will be as successful in binaries as in traditional trading with only one difference - the profitability

post #238 of 1205
Thread Starter 
Quote:
Originally Posted by Rock Sexton View Post

 

Futures and options are two seperate instruments ..... although they do have futures options now too, but I haven't even looked into them.  Somebody from the website I ran trade the copper ones.  

 

Lemme give you an example.  The 139 monthly puts on the GLD etf were selling for almost 1.00 a piece on the open of the 9th.  They even got as low as .80 that day.  At the peak of the move on the 10th, they went to 3.00 ...... Theoretically one could've bought 5 contracts (total $500 invested) and made $1500 and kept a stop loss of 20-30% ($100-$150).  Either way the potential to make MORE money was there, risking far LESS.

But you have to agree with me that that was not a common thing. That big a drop happens once in a blue moon.Now in Binaries it is enough that the price would drop one peep and the Put option would win. With one cent drop. The same 760$

post #239 of 1205
Thread Starter 

I repeat my "mantra": the successful trader (defining successful by resourceful, real scholar and with analytic mind, experience and the nerves of steel, confident) would profit o any trading venue, but in Binaries he'd be much much more profitable

post #240 of 1205

As I mentioned, the reason why binaries are more risky is it's basically double or nothing. It's easier to blow an account because an inexperienced trader can make one bad decision that leads to another, and then in an effort to win everything back, they end up losing more. It's much harder to blow an account with traditional trading as a loss will rarely be 100%. 

 

I have nothing against binary options as I used to trade binary options. You can easily make a lot of money with binaries (as Cherry, a long time member of HSM, has established).

 

However, on the topic of chop shops, don't kid yourself, binary options houses aren't regulated. The broker you posted (OptionRally) is headquartered in the British Virgin Islands. It's not a coincidence that many sports books are located in the same region (online gambling is illegal in most states and that's what these binary options are classified as).

New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: Trade Journals & Stock Tips
HotStockMarket › Forums › HSM Stock Forum › Trade Journals & Stock Tips › SportsMavin's binary trading