Michael Hodges : Binary Options Watchdog
Who is Michael Hodges, what are binary options and why do we need a watchdog? Well, I am Michael Hodges. I am a trader, investor, writer and blogger who has become a convert to binary trading. I have been a student of technical analysis, the markets and trading since October 5th, 2006. I remember the day well because it is the day I was first introduced to technical analysis and the day I became trader. This doesn’t meant that I became a successful trader that day, just a trader. It has taken my every bit of the last 8 years to reach the point in my career that I have. A point where I am confident in my analysis, have the ability to make a quick decision and have mastered account management to the point that I never, ever, worry about any trade I make.
- Watchdog- A guard dog or other animal left to guard, watch over or protect. Also, a term referring to investigative journalism that seeks to protect or guard the public from harm, a whistle blower. A “watch dog” seeks to inform and protect the public from harm or illegal practices.
I first became aware of binary options near the beginning of my education. I did not fully understand them and did not spend much time on them in favor of trading equities and standard options. After accepting a job with BinaryOptionsThatSuck.com I quickly learned that although binary options are a simplified way to trade, they are not simple to trade. To learn more about me and how I became a trader visit Michael Hodges Binary Options.
What are binary options?
Any broker on the internet will tell you that binary options are a “simplified way to trade” and a way for average people to “trade like a pro”. What they don’t tell you is that even though the nature of the options are much easier to understand than typical equity options, futures or spot forex they don’t tell you that it is just as hard to trade binary as any other form of trading. . . you still have to make analysis and you still have to be right about it. If it really were so easy every one would do it and we would all be rich, right?
Binary options are a speculative trading vehicle. They are not investments. When you buy a binary option you are, in essence, making a bet with the house whether an asset will perform as predicted. The most basic prediction is up or down, also called high/low options or calls and puts. If the asset moves as expected then you profit a set amount. That is why they are called binary; there are two possibilities, two outcomes.
Unlike equity options, binary options have no underlying value and are do not grant any rights other than those described by the binary brokers terms and conditions, namely that if the option closes in the money you win and if it doesn’t you lose.
Why Do We Need A Binary Options Watchdog?
If you don’t already have at least some idea of the answer to this question it is a good thing you found me. We need binary options watchdogs like me because the industry is young, largely unregulated and a hot bed of potential scams and pitfalls for unsuspecting traders. There are three main areas in which I am interested in educating the public; regulation, scams and trading.
Binary options are largely unregulated. There is a growing movement of regulation but it is regional, spotty and for now at least there are three different types that could affect which broker you choose and what assets you may be allowed to trade. Click here for more information on the various types of binary options regulation that are emerging around the world.
Scams are another reason we need a watchdog. Because the industry is so unregulated and because it exists on the internet with no regard to national borders it is a breeding ground for scams of all types. Some involve shady brokers, others unscrupulous signal services providers and others whose only intent is to make money off of you. you have to be very very careful when choosing a broker, accepting any bonuses or utilizing any free or paid signal service providers. Click here for more information on the possible binary options scams and how to avoid them.
The final reason, and my favorite, that we need a binary options watchdog is trading. Binary options are all about trading and so am I. I love technical analysis, trading strategy and market speculation. There are hundreds if not thousands of ways to trade profitably and I am here to help expose the methods that don’t work and promote the ones that do. Binary Market Analysis is filled with my strategies and the strategies of my trading colleagues. You will also find links to other strategy sites I like as well as reviews of strategies that truly suck.