options - trading or gambling?
|As you know, gambling
can be an incredibly exciting experience. That feeling of the unknown and the
elation of getting it right can be euphoric. I like to gamble on
sports events, not because I want to make a lot of money, but because it adds
an extra layer of excitement. Gambling is generally frowned upon by society but
the dictionary definition states: an act having an element of risk.
Judging by that description, we can regard every form of investment as a form
of gambling because there is a risk of losing it all.
is a relatively new form of trading which has become very popular due to
its perceived simplicity. You simply need to choose whether a currency,
stock or commodity will either increase or decrease in value over a specified
period. There is a turbo mode which has a low expiration time of 30 seconds.
Potential returns for the turbo mode can be as a high as 90%. Critics argue
that this adds an element of chance because how can one tell what will happen
within such a short period?
Notably, some of the worlds smartest
minds werent able to predict the 2008 recession, and they had a lot of
data and time. If you have been gambling for an extended period, you might have
heard from friends and family that there is no skill involved, and it is all
down to luck. Yet, there are poker players who make significant returns
tournament after tournament, not to talk of sports gamblers so good that they
Ask any good digital options trader and they will tell you
that the moment they make a trade, it is no longer in their control. However,
they do a lot of research to swing the probabilities in their favour. Someone
who tries to trade stocks using guesswork is a fool and unlikely to get
consistent returns. In a similar fashion, the best gamblers look at all the
factors involved and find ways to swing them in their favour.
are anything like me you are obsessed with data. Before placing a bet on a
football match, I like to know as much as possible. I look at past performers,
the individual form of each player, the home vs away form of each player, etc.
It would be stupid of me to simply guess who is going to win, or just go with
my gut. I might be lucky and get it right, but over the long term, this will be
an ineffective strategy.
Obviously, high payouts equal increased risk.
However, humans are greedy; therefore, we tend to go for the option with the
highest potential return. Digital options traders are able to manage the risk
involved. They have a long term perspective. There are times when their data
shows that the risk level is significantly lower than what the brokers deem it
to be. Good digital options traders are constantly looking for these types of
Going back to our football example, you might find that
betting on the underdog has a very high potential return because the house
thinks it is unlikely to happen. However, after delving deeply into the data
you find that there are some factors going for the underdog. For instance, they
might have performed well against opponents of similar skill, and their
opponent has a key player injured. After spotting this value you might decide
to bet on the underdog because there is a good chance of a win.
thought process of a successful digital options trader and a gambler
arent that different. Both are trying to limit their risk and weigh up
different options. Both put their money where it has the best chance of
providing a return. Most importantly, they are both able to manage their
emotions and know when to walk away.
The digital options industry is
largely unregulated. It has been banned in the EU and is under tight regulation
in the United States. This is due to the high number of fraudulent websites. In
order to cash in on the hype some sell digital option products which dont
do anything, Some people have even lost their life savings to these scams.
Sadly, most fraudsters are able to remain anonymous and escape with the money.
Here are some things to look out for if you choose to trade digital
1) Look for platforms which have been trading for at least 6
months. Scammers close their platforms over a shorter period because their aim
is to get as much money as possible and flee before people realise what is
2) A good digital options broker has multiple withdrawal
options. Ideally, you should be able to withdraw money via wire transfer and
3) You shouldnt feel pressured to invest more money.
Fraudsters tend to send out emails or even call people to bully them into
investing more money.
4) Legitimate digital options
platforms offer excellent customer service and are easy to reach. Look for
registered phone numbers and a company registered in Westernised countries.
5) Does the platform promote a luxurious lifestyle above all else?
People are drawn to money and success. Therefore, scammers rent mansions,
models and supercars in order to create an illusion of a successful guru.
Scammers make it seem easy to become a digital options success. Legitimate
platforms emphasise that there is a risk of loss, and their marketing
emphasises the skill involved.
To conclude, all investments carry an
element of risk/gambling. An entrepreneur setting up a new company isnt
100% certain that it will be successful. They only hope that all their hard
work and preparation will pay off. We all gamble, whether we know it or not.
You need to be in the game in order to become successful. You might bet it all
and lose; however, at least you are trying. Smart traders and gamblers assess
their losing trades to see what they could have done differently. If you want
something you have to be willing to take a risk and do whatever it takes. So
yes, digital options is a form of gambling, but can you tell me what