Many moons ago, circa 2014, I was link- baited into believing that one of my favourite comedians had made millions in something called Binary Trading. I did a ton of research into how it worked and decided it was worth a try.
I made a ton of mistakes...I was caught in a web with the spiders crawling ever closer towards me... and pulled out just before it was too late.
This is my story of the time I tried Binary Trading, and realised what a mistake I made. I am hoping by sharing this that it is an important lesson for others, even for those trying out the new cryptocurrency systems.
1. Don't trade what you don't have
When I started out, I thought the system was bulletproof. If I taught myself the systems and trading platforms, I couldn't lose. So I took out a small loan to cover the initial deposit to begin trading. I signed up with Banc de Binary, which according to many spam prevention and other so-called reputable sites was one of the best trading companies out there.
I believed that I could make back the loan and more in no time. I set up Mt4 platform with lines and stuff, studying the markets and how they worked. Which was a good thing, since it stayed with me into my new journey into cryptocurrency this year. However, I was trading with money I did not really have. It was not money I could afford to lose. As a matter of fact it was actually the bank's money I was playing with, if you want to be technical about it.
Fortunately, when I realised just how bad Binary Trading was, especially since I was doing it wrong and for the wrong reasons, I was able to just make that money back with some good trades. I cashed out and repaid that loan and never looked back again.
If you haven't heard it enough, I will say it again. Do not trade with money that you cannot afford to lose. If you don't mind throwing away some cash, then by all means give it a go. This is one of the hard and fast rules of trading everyone will tell you about when you start. Listen to it: it is sage advice. Then, if you do lose that money, it's ok because it was money you could live without. It's all about the mindset and preventing yourself from heading into mass depression or poverty for poor decisions.
2. Binary Trading is Gambling
The broker assigned to me, who also told me he would only help me if I deposited a further $10,000 into the account, informed me that what I was doing was gambling. I didn't want to listen to him, since I believed I had become an expert in reading the markets. Basically, what I was doing was 60 second trading. I would place a bet that the price would either rise or fall within 60 seconds from the moment I clicked 'Bet'. If the word 'Bet' was not enough to convince me it was gambling, then nothing would convince me.
Looking back now, I realise that it was of course gambling. I was gambling online instead of in a casino. The way I trade crytpo today is so much different, telling the system at which price I want to buy and at which price I want to sell. If done right, you can't really lose funds unless you read the high and low peaks wrong. Of course, I am oversimplifying a vastly complicated trading system. But my point is that, I am not throwing away money like I was back then. Betting that the money would rise or drop withing a minute. It was madness.
I was also called by many trading institutions who obtained my number through Banc de Binary and the trading platforms I signed up for, offering me the alternative of buying forex instead of gambling my money away. I would not listen. I was too stubborn. I almost lost it all.
3. Binary Trading opens the doorway to sharks all over the world
To this day, from when I started in 2014 and stopped not long thereafter, I still receive calls from Europe, America and once even from China, offering me trading services and lessons. The more I tell them I am not interested, the more they just keep trying to contact me. They are relentless, and they will not stop.
The reason these guys are so hungry to get your details is because they make money whether you win or lose. Every trade you make, they get a certain percentage of your transaction. There are some brokers out there that actually care about helping you trade properly, I am sure. But most of them are there just to feed on your inability to trade properly and will enjoy taking your money whether you are successful or not. This I learnt the hard way.
4. I almost lost my family... and I almost lost myself
I don't like being addicted to anything. If I find myself obsessing over something, I put an end to it as soon as possible. This one crucial factor is what pulled me out of this system in the nick of time. I would watch my phone trading apps for signals like a madman at work during the day, and then come home and have the laptop open all night, trading by the minute, losing and winning. My son forgot what it was like to have a father, something that I am still disappointed about to this day. My wife started to become depressed about the lack of time we spent together, especially when trading went wrong and my mood changed towards them.
It was a really hard lesson to learn, but one night I realised what I was doing and I snapped out of it. I traded during the day for a few days to win my deposit amount back and withdrew. I gave my family their loving father and husband back, and it was one of the happiest moments of our lives.
Don't make the same mistake. If you find yourself obsessing over trades to the point where it affects you or your family negatively, it is not the right time for you to trade. As mentioned before, if you put in money you are willing to lose, and you only check that your buy or sell orders were achieved, then it is safe for you to trade. Don't throw yourself away.
These are only a few of the mistakes I makes, but they are the major ones. I am almost embarrassed to spell it out here in writing, knowing many of you experts will think 'What an idiot'. But there are so many that are pulled into making the same mistakes, basically risking it all for that quick win, for that get rich quick fix that everyone thinks trading will do for them. So I am laying myself bare on here for others who might be thinking of doing the same. If you are one of the lucky ones who made it big on Binary Trading, good for you. I am glad I am out of that sinkhole and now into cryptocurrency which appears to have a brighter future.
At least with Steemit, I am not using money I don't have. I'm really loving that my posts and curations create the funds I use in the Steem Market. It allows me to continue learning about markets again in a relaxed manner.
Cover image source: Pixabay
A Proud SteemPunk Member
Kind regards
Shaun M Jooste
Joint-Owner: AIR Entertainment (https://airentertainment.biz)
Director: Celenic Earth Publications (https://celenicearthpublications.wordpress.com)
Author, Screenwriter, Gamewriter, Journalist (https://celenicearth.wordpress.com)