The end game for many people who are stuck in the rat race of everyday life is to achieve financial freedom. Breaking free from the 9 to 5 offers great satisfaction, opening up many new life paths and can even better your health. It is no wonder why so many people are taking advantage of the many opportunities to break out from the norm.
Binary Options are without doubt one of the most popular financial products on the market today. They offer a glimmer of hope for those that want to generate an alternative path to making money. Not only do they offer high payouts, they are also easy to pick up and start trading with.
The fact that you can make huge returns on your investment in just a matter of minutes has not gone unnoticed by both potential traders and marketers alike. As a result there is a huge amount of marketing undertaken by many binary options brokers that focuses on the lifestyle that can be achieved – fast cars, champagne, mega yachts and gorgeous women! These are all things that most of us aspire to.
Of course if you start trading binary options it won’t be long before all of these things are yours. Right?
Of course anyone of a reasonably sound mind will, in the cold light of day, realize that these trappings of success are not immediate the moment that you start trading. Having an expectation that you will be in a position to buy the latest Ferrari or Porsche six months after opening your first account is not realistic. In fact thinking that you can hit the stars with just $100 is more likely to limit your trading performance.
The world of course revolves around marketing. Many of the images that we see are exactly that; images of what we would like to achieve. They are not a reflection of what we actually will achieve.
To illustrate his let’s look at the performance achieved by some of the top mutual funds over the past 10 years. You can see that on the first page, all of these top performing funds made over a 200% return for investors over the period. The best significantly more. However remember that we are looking at the best performing mutual funds over the period. Managed by top money management professionals with teams of analysts, researchers and the best tools that money can buy at their finger tips.
So what point am I trying to make? Well on a single binary options in the money contract you can earn in excess of 70% and in many cases significantly more. In just two or three winning trades you can actually outperform the best that Wall Street could come up with over 10 years!
Of course when trading binary options the risks are higher. Yes you can win a lot more but you can also lose the lot. It is therefore important to put your returns into perspective. Rather than shooting for the stars straight away, build your risk and profits at a more measured pace. Build up your pot and don’t be disappointed if you only double your money over the first month. If you achieve this, this is actually a very good relative return for your efforts.
You may not have accumulated enough for that fast car, but you should gain some comfort from the fact that you bettered the returns of Wall Street in much less time.
The tone of this article may sound like I have a downer on binary options. That however is not the case. The truth is that I understand the gains that can be made from binary options and also its limitations. It is those people who are yet to reach this level of enlightenment that I worry about. Many of these will be people who cannot afford to lose whatever money they deposit with their binary broker.
Their high expectations will be dashed and they will end up in a worse position than they were prior to embarking on the quest to fulfill their dreams.
Now of course they must take some responsibility for their actions. However it is hard not to suspect that the most vulnerable are also those most susceptible to buy into the binary options dream in the first place.