STOP GAMBLING! Insider Tricks to Understand Binary Options Trading

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It’s time for you to stop gambling in your binary options trading. And today is gonna be that day. My name is Jason, and welcome to Binary Masterclass.

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I want to respond to one of the comments that came on one of our YouTube videos. It’s a really, really good comment, and I think it’s important to pay attention to this. It is from Cryptophile. He says, or she says, sorry I don’t know if it’s a man or a woman here.

“Binary options can be considered a form of gambling because they involve predicting the outcome of a particular event. In Binary options trading, a trader must predict whether the price of an asset will rise or fall within a specified time frame. If the traders prediction is correct they earn a profit. If it is incorrect they lose their investment.”

This kind of sounds a bit like chat GPT don’t know for sure but the information here is correct.

“The reason why binary options can be considered a form of gambling is that the outcome of each trade is based on chance. There is no fundamental analysis of the asset being traded and the trader is essentially betting on whether the price will go up or down. It is important to note that binary options trading is often associated with high risk and many jurisdictions consider it to be a form of gambling. Therefore, it is important for anyone considering binary options trading to fully understand the risks involved and to ensure that they are trading with a reputable and regulated broker.”

Like I said, it kind of sounds a little bit like, like, like chat GPT. So whether this person wrote it themselves or chat, GPT wrote it, it doesn’t really matter. It brings up some really good information. And the thing here to pay attention to is that it really could be considered gambling. And most people, probably even you, really trade it as though you are gambling.

And so, first of all, I want to talk about what is gambling and what isn’t gambling. Like, to predict an outcome isn’t gambling. And just because there’s risk involved doesn’t mean it’s gambling. Like, for example, you go outside and you get in your car and you drive down the road and go across the city. You are predicting an outcome. Now, you don’t know exactly what that outcome is gonna be but you are predicting an outcome. You are predicting that you will safely arrive at your destination. You’re predicting that nobody’s gonna run into you. You’re predicting you’re not gonna run into anyone else. You’re predicting that there’s not gonna be a satellite that falls out of orbit and lands on your car.

You’re predicting all of those things and all of those things well with the exception of maybe the satellite all of those things really could actually happen like you could get into a car accident, but you’re predicting that you won’t and you’re assuming that you won’t and the fact that just because there is risk in you getting into a car accident, that risk is not keeping you from getting into your car and driving there. So, there being risk element and there being prediction element that by itself does not automatically cause it to be gambling.

So let’s just even take a look at, real quick, like what actually is gambling? I want to come back here, show you my screen again. Coming here to Britannica and we can see gambling:

“the betting or staking of something of value”

Okay, you can even see that in driving a car. Okay, you are betting or you’re staking something of value. You yourself are this thing of value, okay?

“With consciousness of risk and hope of gain. On the outcome of a game, a contest, or an uncertain event whose result may be determined by chance or accident or have an unexpected result by the reason of the bettor’s miscalculation.”

And that right there is a very important point right there: the bettor’s miscalculation. One of the things that makes binary options trading gambling for many people and one of the things that makes trading and investment in general gambling is this idea of miscalculation. Like you are more than likely trading and you’re calculating that there’s a good chance that you’re gonna win, but the question is what are you calculating and how do you know that you’re not miscalculating? That’s a huge question that nobody ever asked. You just automatically assume, you probably saw a strategy on YouTube or on some forum somewhere and saw that it kind of works maybe, or at least it looks like it works and therefore you’re gonna do it and you calculate that if you follow that strategy and you wait till that line does this and that price does that and you know, the birds fly and the moon lands on Saturn then you’re gonna win.

But if you’re calculating the wrong things then your entire premise is based on miscalculation and therefore, by nature, your trading is gambling it just is and you don’t want to gamble, right? I mean, you don’t want to gamble. You’re here to make money. You’re not here to gamble. So what does it take for you to move from gambling to actually trading an investment? Because here’s the cool thing, is that like, there are investors that if they were to lose all of their money now, within a few months, they’ll have most of their money back or they’ll have a lot of money back. They will be back stable again because they are following certain investment principles that are time-tested that work.

If it was gambling then there would be a good chance that they would not have money if they lost all their money. Like they would have no future. They lose all their money now, they would just sit there and say, oh, man, my luck has run out, I can’t do it. But no, they know exactly what to do to cause and create money for themselves. And that’s what we wanna focus on here. So let’s just even take a look at this even further. And we gotta know that we’re actually calculating the right thing. And what is it that you need to calculate in trading?

The very thing you need to calculate in trading is price. You need to know what causes price to move. If you don’t know what causes price to move, then you are basing your entire calculation on some imaginary line that some programmer wrote that someone decided to put on a chart that someone else decided to put that together with another line and someone else decided to create a strategy out of it so that you can decide to trade it.

But you got to know what causes price to move. So really just begin to ask yourself that question. What actually causes price to move? And we gotta know that so we can calculate correctly. So what causes price to move? Okay, is it, an indicator? Price moves and now the RSI has moved so much in one direction and that means that price is now gonna turn around. So is it an indicator cause price to move? Nope. Does news cause price to move? I mean you might be thinking, news! That’s right. Every time the non-farm payroll report comes out on usually the first Friday of the month, then the price is gonna just go crazy. Like that’s gonna cause movement. So news cause price to move? Nope. Does momentum cause price to move? Price is moving so fast that, you know, because momentum is there it’s gonna continue happening? It’s gonna continue moving? Nope.

What else? What about when the market opens? You know when the Asian market is happening and all of a sudden the London market opens. There’s all kinds of movement that happens. So clearly it’s when the market opens or the stock market. You know, there’s like no movement, no movement, and then within the first 30 minutes of the stock market opening is all kinds of movement, is that what causes price to move? Nope. Chart patterns. We know that if the price is moving up and it creates a head and shoulders pattern that it’s now gonna and it breaks that neckline and it’s gonna move down we could even calculate how far it’s gonna move down based on certain targeting principles, so that head and shoulders pattern is gonna cause that price to move. Nope. What causes price to move? Is it the economy? When the economy is doing well that’s gonna cause price to move? Nope. What causes price to move?

Orders.

09:38

Orders in the market are the only thing that causes price to move. You could say, well, it’s supply and demand. Right, but what causes supply and demand? Like, when there is demand, there will be orders in to buy. It is orders. When there is supply, there will be orders in to sell. It is orders. Okay.

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Orders are the only thing that cause price to move. That’s it.

And so, what do you need to have? What needs to be in place for you to have a winning trade? Well, you need other traders looking at what you’re looking at. Why?

You need other traders looking at the exact same thing so they can place the orders where you think those orders should be. You need other traders looking at the same currency pair. You need other traders looking at the same time frame or a correlated time frame. You need other traders looking at the same indicators. You need other traders with the same settings for those indicators. And are you a trend line trader? Well you need other traders trading the same trend lines. That’s the only way that you can get other people placing orders where you want them, so that you can get the price to move the way you want that price to move. You get that?

So like what do you do? Like how are you gonna possibly control that other people are looking at the same currency, the currency pair, the same time frame, the same indicators, the same settings, you know, they’re looking at the same trend line. Like you can’t control all of that.

Well now all of a sudden you’re getting kind of stuck. What on earth are you gonna do? How are you gonna do that? Let’s just take a look here. I’m actually gonna bring up, I’m gonna bring up my trading view here for a second. We’re gonna just take a look at a chart.

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Let’s just take a look at a chart here.

So here we’ve got the EUR-USD, the EUR-USD on a five-minute chart. Let’s even just see like. Let’s just take a look at this. Let’s put this on here. We’ll put that on there. I mean, there’s a trend line and you know, What? You’re gonna short that trend line right there. You’re gonna get into a put right there on that trend line, BAM! There’s two losses. You know, so it’s gonna break through, it’s gonna break through like that and you get a loss. And it’s gonna come back down. Maybe you place it right away. You maybe get that win if you place a second entry or something like that, but BAM!, there’s a loss. Well, the trend line didn’t work.

Okay, well, let’s just see maybe it’s because somebody, maybe this was the better trend line. Oh, well, okay. Was that the better trend line? Well, what do we got? Yeah, broke right through that. Just pushed right through that. Okay.

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Looks like not everybody was trading the same trend line. So what do we do? How do we get, how do we do? Oh, okay, well, I was just looking at the wrong trend line. I gotta look at the better trend lines. Go look at the better trend lines. All right, well, I’m gonna put that right there. Oh, now we’re not even there. Now I don’t even have a trade. What are you gonna do?

Well, here’s the thing. Here’s the thing. There’s something that every single trader is looking at. Every single trader. Every single trader is gonna be looking at horizontal support and resistance. Let’s just look at this. You know, we’ve got this horizontal ray. Every single trader is gonna be looking at that. Look at that. Bam. Put that right there. Every trader is gonna react off of this horizontal resistance level. They’re gonna react off of that. Let’s come back. Let’s come down to this one. Look at that. They’re gonna react off of that. Start paying attention to horizontal support resistance levels. OK, here’s another obvious one. All right. See, it stops right there.

Now here, probably would have ended up being a losing trade, but they’re reacting off of that. Here’s another one. Bam. They’re gonna be reacting off of these levels. This is very very crucial guys. Everybody is reacting off these levels. Why? Why are they reacting off of these levels? Well, you can imagine. You have to think about what’s going on. What are these other people in the market doing? What are they doing? Because what those people are doing is and what they’re thinking and what they’re seeing is what’s gonna cause their orders. So so so crucial.

We’ll think about this for a moment. You’ve got a whole bunch of people who bought right down here and they are in this market. They’re in the Forex market. They’re they bought the EUR-USD and they’re gonna see this level right here and they are gonna have to make a decision. Are they gonna just continue hanging on to their EUR-USD? Are they gonna sell their EUR-USD? Are they gonna buy more EUR-USD? What’s gonna happen? We’re gonna have a whole group of people who they are gonna sell all or a portion of their position. And what happens when they sell? What happens the moment you sell? It’s gonna cause the price to move down.

Well then you have a whole other group of market participants and these other market participants did not buy down here. They did not buy here. They’re not even in the market but they want to enter the market. They see the price coming right here and they want to do what’s called short selling. And so that in order to do that they need to sell in order to enter a position. They want to make money as it goes down. So what do they need to do to enter a short position? They need to sell. So you have people who are in the market who need to sell and you have people who are not in the market who need to sell. And they are looking at this level right here and look at what happens? And all you need to do as a binary options trader is look to see where people Are gonna be doing that over and over and over again. And you’re gonna start seeing a significant improvement in your trading.

And you no longer need to worry about an imaginary line that some programmer created, that someone else put on a chart, that someone else put together with other lines, that someone else created a strategy for, so that you can trade it. And now you can actually calculate your trades based on what actually moves the market. And that’s what we do in Binary Masterclass. That’s what we do every single day in the trading room. We are actually showing you these levels and we’re explaining them. And we’re also explaining why otherwise really good, good levels may not be very good levels. Like how are you gonna know that? So we’re actually explaining that from institutional level trading and making sure that you’re fully aware how to find these levels and how to recognize when those levels actually are not good.

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So you can stay out of those losing trades, because really you can make a few winning trades but how do you stay out of losing trades and how do you get into trades that actually have a good quality chance of winning.

So that’s what we’re doing there and I’m really excited. lot of deep dives into each of these concepts that are gonna make you approach the market as a professional, because, I mean, I’ve been trading for 17 years, this is June 2023, it’s now my 17th year this month trading and I’ve traded for institutions, I’ve managed other people’s money, I’ve managed my own money, I’ve lost a lot of money, I’ve made a lot of money, and you know all of the everything in between. So we’re bringing all of that stuff together and I’m gonna show you all kinds of amazing amazing concepts and just going to deep dives on all of this stuff so that yeah you can um you can really get what you’re what you want to accomplish and basically financially free through trading. And I just want to encourage you also join us in Binary Masterclass. It’s not very much money and you know, like it doesn’t cost you much money and there’s a whole group of people who know what they’re doing and they love to help. They know what they’re doing and they love to help and it’s an awesome community of people.

So I’m looking forward to the next time we see each other, so have a really great day. Okay, bye.