My First Binary Options Deposit – Mr. Nice Guy
We continue the first trading experience articles serious, this time a more common type of trader – The Nice Guy.
Most people just hate to take risks, they might not be pessimistic as persons, but they are too afraid of the consequences. Most individuals won’t risk their hard earned money on sophisticated assumptions trading. In other words; they would rather put the money in a bank or stash it inside their pillows. Let’s face it – the economy tends to be unstable, saving some money for rainy days is important indeed. The majority of us, I presume, understand the situation we’re facing and respond accordingly. Once in a while, a new trend, a new way of leveraging our capital will emerge. The first to enjoy the fruits of the excitement will be the Sharks, the innovative individuals who have the resources and the time to invest. The rest of the people will follow them after they completely understand the risks and profits involved. I usually categorize that large group into two separated groups – The Suckers, which I already talked about in my last article (My First Deposit Part 1) and the nice guys. Women, no offense please, Mr. Nice Guy sounds better in my opinion, plus I’m already pretty sure you’re all very nice… Back to the nice guys, they follow the Sharks, but sometimes they just don’t understand the rules of the game correctly, and therefore they lose their money instead of leveraging it.
The “Nice Guy”
The nice guy is a working man. He works hard for a living, and he has no complaints. Just like most of my readers, he heard about Binary Options through Google or a random e-mail. At first, he sent those e-mails into his virtual trash, which for some annoying reason tends to behave very much like a real trash can, it just never empties before you actually throw the trash bag away. After a few more weeks he runs Binary Options in his powerful Google search engine. He tries to understand what the big excitement is all about. He’s smart, so he studies Binary Options deeply, he asks some friends and colleagues, until he knows he is ready for the thrill. He has some cash saved for those kinds of opportunities, so he decides to open a Binary Options trading account.
The Nice Guy goes Trading Binary Options
The problem with Mr. Nice Guy is that he just doesn’t like to risk much, like most of us, as I assumed above. You see, Mr. Nice Guy, has done his research, he’s no fool. He knows what he’s doing, it’s not the first time he has traded, he likes playing online poker from time to time, he knows the risks. And that’s exactly his problem. Mr. Nice Guy deposited the minimum fee required, he just wants to try it first, after all, he has never done it before and $100 is all the risk he is willing to take. Unfortunately, Mr. Nice Guy didn’t check the minimum investment amount that the broker requires. The broker’s minimum investment was only $25, and after just two unsuccessful trades his remaining credit was only $50. He panicked, so much so, that he decided to trade a “call” option on Google, with an expiry of 30 minutes. 30 minutes later he had nothing. Mr. Nice Guy never went back to binary options trading. Other nice guys became suckers and invested another $100 immediately, then lost it soon after trying to quickly cover their losses. The most common “I got scammed” comment on Binary Options review’s websites comes from these kinds of traders. They wanted to trade, but couldn’t afford the appropriate risk.
Trade only if you can afford it
First, I want to make it clear – I’m not implying that any individual that begins trading with only $100 will lose their money. Second, don’t get me wrong – investing the minimum amount is the right thing to do, if you can’t afford to lose. Trading Binary Options is a skill, and just like any other skill you should nurture it slowly. Developing binary options trading skills means that you’ll lose some at first, that’s a lesson every beginning trader should learn. When there’s loss involved, one should be aware of the consequences and should have the necessary budget to afford these potential losses. The thing is, when the minimum investment offered by most Binary Options brokers is around $20 or $30, it means that a $100 deposit is worth about 4 trades. Most brokers will offer you a certain bonus to leverage your initial fee, that’s good, but remember to accept only low bonuses. Either way, there’s no reason to invest $100 if you can’t afford to lose $200. Think about it, most binary options strategies require an investment of $50 minimum, so after just 2 losses, what would you do? My conclusion, trade Binary Options only if you can afford to lose double what you have deposited. There’s no reason to be a nice guy and just give away $100.