Opinions expressed by Forbes Contributors are their own. There are lots of ways to lose your money in this world but here’s one I hadn’t encountered before: binary option Web sites. Binary option trading game have become popular over the past few years with new ones appearing all the time: anyoption.
The sites appeal to the same type of people who play poker online. But they somehow have an aura of being more respectable because they represent themselves as offering a form of investing. These are gambling sites, pure and simple. It’s probably just a matter of time before regulators move in on them. Until that happens, they seem to be doing great business.
Some sites provide free guides to binary option trading to get you started. My dad has recently gotten involved with trading binary options online. The basic premise for the site he uses is at a specific time, say 1:25 p. I am also a professional online poker player by trade so I have an extensive understanding of probability, the online gambling markets, and how these sites work.
The problem is he feels he is at a great advantage, citing his ability to read a bunch of charts, follow news, etc. He is a smart man, a former lawyer, and has been following stocks for years, but I feel that he may be overestimating himself here. I’ve looked into online binary options trading a bit and it seems to me that the consensus is that very few people outside of professional traders can beat the trading sites consistently for good money. I’m looking for a way to definitively convince him to stop and that his edge isn’t as great as it seems. I tried talking to him multiple times about the subject but I’m not as knowledgeable about the field and ultimately that becomes my shortcoming when trying to convince him why he shouldn’t continue to be involved with this.