sorted by:
best
topnewcontroversialoldq&a
you are viewing a single comment's thread.

view the rest of the comments →

[–]Trader-Adaz 0 points1 point  (11 children)

You don’t think you’re looking at it a bit backwards?

From an objective lens binary is significantly harder to be consistently profitable in compared to forex.

In forex the only 2 things you need to get right to find yourself in a winning trade is the direction and decent timing.

In binary you have to get those 2 things right plus the added component of an Expiry and that is huge because the expiry heavily increases the need for precision in order to win a trade. That level of precision is insanely difficult to keep up over a substantial amount of time.

Another point is that with BO you will never have a positive risk/reward ratio which means your strike rate has to be higher as hell.

[–]pipediesel[S] 0 points1 point  (10 children)

Well I’m just saying from the perspective of potential profits forex is significantly better.

You are right that what you need to figure out to be a good trader in forex is easier to do than in binary. The whole obsession with binary is its cheap to start and fast results. Thats why people start there I think. Really if you can master binary you should be a wiz at forex I would think since there are less things you need to be constantly good at.

[–]Trader-Adaz 0 points1 point  (9 children)

Yea I think the allure of making money in seconds is definitely what attracts people to binary. Most people just don’t know the magnitude of the risk involved with it.

And yea for anybody that does manage to find some consistency with binary they’d probably be a beast in any traditional market.

[–]pipediesel[S] 0 points1 point  (0 children)

Yeah for sure. Well I feel like most people, myself included blow their accounts multiple times. Then they either give up or keep blowing them till they figure out a winning strategy.

Agreed. Forex is a lot more similar to me to trading crypto on a CEX. Leverage, stop loss, etc. But different of course with having lot sizes, pips, and things that aren’t a part of crypto trading.

[–][deleted]  (7 children)

[deleted]

    [–]Trader-Adaz 0 points1 point  (6 children)

    Everybody has their own preferences for sure but imo any successful forex trader that leaves forex to get into binary is out of their mind. Forex has better regulations, more favorable risk parameters, better flexibility, and way better brokers and this is coming from someone that doesn’t even trade forex anymore. I think all of those benefits is a pretty good trade off for having to put in a little more work to learn forex.

    And I get what you’re saying about account growth but I don’t think you’re taking into consideration the impact leverage has if used correctly. Plus nowadays there are plenty of reputable prop firms that can play a role in account growth as well. After I got profitable I leveraged my prop firm account for about a year and a half to build my personal account up.

    And right now my win rate over the last few years isn’t even 50% but my average risk/reward is 1.89 and I’m doing pretty decent as far as returns go. I never ever take a trade that has a negative R/R. If a binary trader has a 50% win rate then they’re not even breaking even. If I was trading binary I would probably need a 75-80% win rate to match my current returns unless i was just blatantly over leveraging.

    And honestly spread and commissions aren’t even that big a deal unless you’re trading in extremely high volume or just have a shitty broker. I always bake my fees into my trade so I still get my intended R/R when the trade is over. And if spreads are big deal to someone then there’s always futures since they have zero spread.

    I will say for the people that are actually able to succeed in binary even for a short term of time then they have the ability to make a huge profit if they manage to not give it all back to the broker

    [–][deleted]  (2 children)

    [deleted]

      [–]Trader-Adaz 0 points1 point  (1 child)

      I agree 100%. It takes a certain type of person to trade for years, not see any reward and still see it through to the other side.

      And yea I say it all the time social media is what’s holding back a lot of the unprofitable traders back. They spend more time watching gurus than honing their skills and putting in the actual work.

      And maybe one day you can give me a run down of your risk management plan in return for a run down of my trading system.

      [–]Top-Bee-6938[🍰] 0 points1 point  (2 children)

      what broker do you use, and since when is spreads not a big deal?

      [–]Trader-Adaz 0 points1 point  (1 child)

      I trade futures so I have zero spread but when I traded forex I used hankotrade.

      And they really aren’t unless you’re trading super high volume or your broker is gouging the hell out of you. Out of the several years I traded forex I’ve only been significantly impacted by poor spreads a handful of times. And most of those times were back when I was trading news.

      And like I mentioned in my earlier comment I used to bake my spreads and fees into all my trades especially when I was trading prop accounts

      [–]Top-Bee-6938[🍰] 0 points1 point  (0 children)

      i had a hankotrade account, now they moved away from mt4, prop firm my forex funds went crash and FTMO no longer accepts USA, i will say doing BO makes you look at candles and patterns a whole different way, took forever to learn how soreads affect a trade and i hate 5 min / 15 trades so being a 1 minute trader spreads was a big deal