TopicHow to Beat the Odds of Trading Forex
However, binary options (like any other investment option) have its downsides and pitfalls. Perhaps the biggest disadvantage of trading binary options is the fact that it is not easy to continually, accurately predict just how an investment will perform within a short period of time. While there are plenty of news articles, blog posts and analyst predictions outlining how stocks will do over a short or long period of time, there is not much to go by when determining if a particular stock will rise or fall in value within a few minutes, hours or over the course of the day.
Another factor that one should consider before investing in binary options is the need to "get it right" the vast majority of the time in order to turn a substantial profit. As was outlined above, a person has to make the right call more than half the time in order to break even. For this reason, those who are investing in this market for the first time may want to do so slowly and start out using small sums of money.
While there are plenty of investment options to pick from, binary options stand out for several reasons. While an investor would need to have thousands or even tens of thousands of dollars available to invest in stocks, bonds, mutual funds, hedge funds and/or precious metals investments, the binary options market is open even to those who have only a very limited amount of money to work with. What is more, binary options are short-term investments that enable a person to make money much faster than would ordinarily be possible.