Whenever scams or fraud is mentioned in connection with binary options trading, the first thought that many have is brokers. The truth of the matter is that strategies can be problematic as well. As the number of broker-related scams continues to decline, there has been a noted increase in other types of unscrupulous activity that traders need to be aware of and this does extend into the area fraud in strategies.
Many binary options strategies are considered to be valuable, so it comes as no surprise that some individuals may want to charge a fee for providing you with “guaranteed” strategies. There are cases in which this information will be something new and different and will be worth the cost. However, many of these strategies are the same as other strategies. These can typically be accessed for free online, along with slightly modified versions. Be sure to read any available reviews before spending so much as a single penny on any strategy.
Does a “guaranteed” binary options strategy even exist? No. It cannot. Market conditions are in a constant state of change and this eliminates the potential for any strategy to be 100% effective. What you can find, however, are strategies that can be accurate as much as 80% of the time. Let’s face it, if strategies were guaranteed to help you profit 100% of the time, brokers would not be able to remain in business and digital options trading would soon disappear.
Most confusion stems from paid digital options strategy offerings. As mentioned above, these may or may not provide value. As digital options continue to become more mainstream, expect to see a steady influx of strategy offers and information. The only way to avoid wasting your money is to perform a lot of homework before making such a purchase. You could also decide in advance to never pay for this type of information since it is always available for free when you trade with several brokers.
Even though binary options strategy information is widely available online this does not mean that it can all be trusted. Untested strategies are often made available and these can certainly be costly if you put them to use in an investment situation without testing them first. A few reliable strategy sources are really all that a trader needs.
There are other forms of bad strategies, such as those that are just simply not effective. Each digital options trader will need to learn which strategies work best for them, and which are best avoided. Novice traders should start out using fundamental strategies, and not be concerned with advanced strategies. Digital options are quite simplistic in nature, as are many of the strategies that go along with it. That being the case, traders can come out on top way more often than not when proven strategies are put to use.