It is not 2005 anymore, when you could buy anything on the stock market, you practically could not lose, because everything increased. We live in very different times, and ignoring this fact can be fatal!

1. Fortune Hunters Run Away!
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Options Trading

2. It is not 2005 anymore…
It is not 2005 anymore, when you could buy
anything on the stock market, you practically
could not lose, because everything increased.
We live in very different times, and ignoring
this fact can be fatal!
I will say in advance that I do not want to
scare anyone, I just want to share my
experience of the past 10 years and how I see
the trading today, based on this.
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3. There is no quick money!
Unfortunately, I receive many mails even
today saying that "Gery, I have € 300
saved, do you think I should start trading
binary options with it, because I saw on
youtube, how easily we can make money
with 60-second (!!!)options? ".
What do you think is my answer to that
question? My answer is NO WAY, it is
guaranteed that you will fail.
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4. There is no quick money!
If all your saved money is € 300, buy books
and knowledge rather than risk it on a new
online casino called binary options. The only
thing that always pays off is investing into
knowledge and the development of yourself,
but that's another topic.
Even today, incredibly, many people believe
naively in getting rich quick on the stock
exchange. That does not exist. Period.
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5. There is a huge amount of scams on
the Internet!
The Internet is full of a variety of "successful"
strategies.
Always beware of brokerage firms who advertise
“good” things to you, the robot, the binary
strategy. They want to take your money!
Their goal is to make you open an account with
that firm and lose all your money, especially if they
are dealing desk brokers. Since I mentioned the 1-
minute successful options strategy above, let's take
a closer look at it.
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6. There is a huge amount of scams on
the Internet!
The level of one-minute price movement is very close
to the predictability of the movement of chaos
theory fractals, therefore it cannot be guessed at all.
What kind of technical or fundamental analysis could
tell you if the EUR/USD will go up or down in a 1
minute? There's nobody and nothing in the world
who could tell you that for sure. Of course, you can
bet on it, this is a good business, especially for the
brokerage firms who are working with a 70/100
payout ratio.
I beg you not to fall for these! There is no profitable
1-minute strategy for options! 6

7. However, the black swans are alive
I have written a lot about the black swan
phenomenon, so I will not repeat it here, I would
rather bring a few examples from the recent past.
For simplicity, let's just look
at swans (except CHF), where
the price movement was
very fast and almost no stop
would have been able to
protect you, only risk
management with options!
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8. 31/10/2014 - EUR / JPY
A move over 300 points after the intervention of
the Bank of Japan.
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9. 15/10/2014 - /ZB
A movement over 500 points in the US 30-year
government bond within a day. During the crisis, there
was never such a big candle in this product. They never
figured out what exactly caused the continuous increase.
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10. 25/02/2014 - /NG
Natural gas fell more than 30% in two days, until the
/NGH4 futures product ran out and the weather settled
down, or at least speculation ceased.
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11. 12/15/2014 - USD/RUB
A 40% rise in a day after the intervention of the Russian
central bank.
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12. 06/05/2010 - SPY
Good old 'flash crash' in the S&P500 index. An 8% drop
within a day, in almost a few ticks.
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13. What is common in the above
charts?
There is a vast movement, mostly unexpected,
manipulative and difficult to handle. One thing is
certain in these situations, the stop does not
protect you because of the wide bid/ask and price
jumps. But the maximum size of the account does
not protect you, either. Many FX brokerage firms
advertise that the customer's accounts cannot go
negative, but now they demand the debt arisen
from the SNB intervention from their customers.
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14. What is common in the above
charts?
As you can see, the above cases are not occurring in
isolation. Except for the example of SPY, each came in
2014. As the money pump and the inability of the states
and central banks grow, volatility and uncertainty will
increase. You must prepare for this and be able to
handle it. Remember, it is not 2005 anymore ...
Many people traded in the delusion that their
maximum loss is the size of their account.
Unfortunately, this is not the case, the world could
clearly see this in connection with the SNB case.
The most important lesson is risk management!
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15. Sound risk management
People who trade with 1:500 leverage on the
FX market deserve their faiths! Your loss is
unlimited in a simple leveraged FX spot
transaction, regardless of whether you use
stop or not !!!
You can only survive a movement similar to
that of the CHF on the FX market, if you had
options, if you covered your transaction with
options, you had warrants or your leverage
was down at the 1:1 area.
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16. What options remained for you?
If you do not want to lose your entire fortune, or
even more than that, you have the following options:
You trade options on a covered way, even on the
foreign exchange market.
You buy FX warrants, the maximum risk of which
is their cost, even in case of one option.
When trading underlying products, you hedge
with options, not with stop orders.
No other way remained, only the hope, but we saw
that it is not profitable.
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17. Where is your money?
If you're a novice, or even if you have traded for some
time, it is worth examining, where your money is. If it is
in an uncontrolled environment, in an offshore area, at
companies of dubious origin, it is better to make a plan
B as well. I would never transfer money to offshore
areas, to for example, no-name binary options
brokerage firms that were registered a few months ago,
but have a very appealing marketing. I would not
transfer money to a place where the minimum level of
insurance of customer capital is not regulated by law.
Obviously, these aspects are only important if you do
not want to start treasure hunting with € 500 ...
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18. Feel free to ask me!
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Email: gery@optionsrules.com
My webpage: http://www.optionsrules.com/
You can find me:
Facebook: https://www.facebook.com/OptionsRules1
YouTube: https://www.youtube.com/user/optionsrules
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LinkedIn: http://hu.linkedin.com/pub/gery-nagy/6a/513/261
Skype: opcioguru