Since the onset of options trading there has been much ongoing discussion if this type of online trading is the same or comparable to roulette played in online and offline casinos. For those of you that don’t know, roulette is well known in gambling, and is widely played online by gambling addicts. Options on the other hand are increasingly traded by online investors that want to make high returns while trading.
It is a widely known fact that roulette is played by gamblers that in most cases have prior knowledge that they will lose their money. Actually, the latest analysis points out that the house or dealer has at least an 80% chance of winning from the outset over the player (20%) when it comes to roulette.
There are several different ways that people play roulette, each with a low probability of winning. We will look at the 3 most widely known trading strategies now:
- With 36 numbers evenly divided between red (18) an (18) black, things may look simple at first. However, there is also a 0 (green color) on the roulette wheel. Therefore, by mathematical terms the odds are against you by about 53% by simply placing your bet on red or green.
- You also place your bet on one of the numbers, including 0. This put your odds of winning from the outset at 1/37 or under 3%.
- Another common way of gambling on the roulette wheel is placing your money on the first third (1-12), second third (13-24) or last third (25-36) of numbers. Therefore, your odds of winning are less than a third (take into account the 0 too).
Options trading is very different from playing roulette, and is based on real facts, such as market behavior rather than fixed/non-fixed odds at the roulette table. Predict with great confidence the outcome before you place your trade. Instead of having the option of black, red, 0, etc with roulette, simply forecast whether an option will expire higher (Call) or lower (Put) than the current level at the time of expiry. This already sounds much simpler than roulette!
It is true that there may be a small percentage of individuals that consider options like roulette or other forms of gambling. However, this is completely wrong! In fact, options trading is best known for being one of the most dynamic means of investing on the financial markets. From the outset, your odds of being in-the-money are much higher than with roulette. Even from the outset, most brokers offer up to 85% return for being in-the-money and 15% return from being out-of-the-money.
You have several categories of financial instruments to trade: forex, stocks, indices and commodities. By following technical and fundamental analysis you will vastly increase the likelihood of your trades bringing you high returns. If you are serious about earning money with an effective strategy from the financial markets, options are an increasingly attractive investment choice.