Is Binomo a Gamble or Not? | A Real Comparison


No, trading on Binomo is not inherently “gambling.” In this article, we will examine the key differences between trading in Binomo and what many people consider “gambling.” We will also discuss why people consider Binomo a gambling site in the first place and offer some key tips and steps to ensure that you will not adopt a “gambling” approach in Binomo.

Differences Between Gambling and Binomo (Trading):

Binomo (Trading)Gambling
Requires an Edge and Skill: Trading in Binomo requires a trading “edge” to be profitable in the long term. An “edge” can be a high win rate strategy, a better risk management set-up, or simply the experience to know which trades to take. Predominantly Luck-Based: In contrast, gambling is often luck-based and does not require any skill or edge to engage. Whether you will make money depends mainly on chance and not any “edge” you can hone and improve.
With Risk Management: Long-term success in Binomo trading requires proper risk management. This ensures that you do not take unnecessary and unwarranted risks.Without risk management: Gambling does not require risk management techniques or systems. Hence, a “total loss” due to a “one-time, big-time” mindset will likely occur.
Dealing with Probabilities: In Binomo trading, you analyze each potential trade as a probability. Furthermore, your trading strategy is measured by its long-term likelihood of success (win rate).Dealing with Chance :In gambling, you’re predominantly dealing with “chance” each time. Hence, you also hope you have a “higher” chance of winning each time.
Systematic Approach: Proper trading in Binomo is highly methodological in nature. You analyze each trading factor objectively to optimize it for your long-term trading success.Unsystematic and Emotion-driven: Gambling is a highly emotionally driven activity. In fact, this wide swings of emotions is one of the addictive factors of gambling. Also, it lacks a disciplined approach.
You can take only favorable trades: Trading in Binomo allows you to take only “high probability setups.” These are trade conditions that, if met, have a higher probability of success.You don’t know what is favorable or not: In gambling, you do not know which bet is favorable or not. This is because you often have no data to analyze (versus in trading, where you can backtest).
Consistency is the Goal: The goal of trading in Binomo is long-term consistency and not making a life-changing one or few trades. Jackpot is the goal: In gambling, the ultimate goal is to win a massive bet. This results in risking too much money, which can severely affect your life.
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(Risk warning: Trading involves risks)

Why Do People Consider Binomo Trading as Gambling?

Many people consider Binomo trading gambling largely due to a lack of knowledge in the field of trading. From an ordinary point of view, Binomo trading and gambling may seem one and the same. However, as shown in the reasons above, there is a clear distinction between trading and gambling. 

Another reason is the design of binary options brokers, such as Binomo, which only has two options: will the asset’s price go up or down? Thus, the barrier to entry is extremely low, and it’s easy to jump without any prior trading knowledge. After all, you just have to decide between the two options. This then leads to the misconception that it is how trading “works” when this is, in fact, just pure gambling.

Finally, there is also the widely known fact that more than 90% of traders lose money. However, this is also misguided, as the majority of the 90% are actually gambling and not trading. 

When you ask these unsuccessful “traders” or look at different trading forums online, you will quickly find out that they are guilty of at least one of the following: 

  • they have no systematic trading approach
  • they do not have proper risk management
  • they are trading based on emotion or what is “hype”
  • they are looking for that one “wonder” trade rather than aiming to be consistent
  • they do not adequately understand how financial markets work

Trading on Binomo Without Knowledge can be Gambling

Thus, trading on Binomo without adequate knowledge can inadvertently lead people to gamble their money away. Successful trading requires a thorough understanding of what you are trading (the nature of the financial asset) and how the market works. The problem is that many “traders” jump to live trading without knowing what they are actually pursuing. Hence, this aimless path almost always certainly leads to engaging in gambling behavior as it is easier, plus you may also get “lucky” without the needed hard work. 

How to Not Gamble on Binomo 

Here are some actionable tips and steps you can take to ensure you will not engage in gambling on Binomo:

  • Take your time to learn trading on Binomo and how the market works. The worst you can do is immediately rush this process and develop bad “trading” habits.
  • Develop a trading strategy with clear parameters and guidelines. Include clear conditions of when you will take a trade and when you will forego it.
  • Develop a proper risk management system. You can start with a simple risk management practice of setting a maximum percentage of your portfolio that you will risk per trade. (Ex. 2% of your portfolio per trade)
  • Use a demo account to practice these first three things. This will also help you see which areas you need to improve on.
  • When you feel ready, start with a small capital you can afford to lose. Then, maintain a long-term mindset: Your goal is consistent profitability—no matter how small your progress is—and not to hit a jackpot.
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(Risk warning: Trading involves risks)

Conclusion

Ultimately, trading on Binomo is not gambling. Unlike gambling, success in Binomo trading requires a proper understanding of how the market works, a systematic trading approach, proper risk management, and, of course, continuously striving to improve in this field. After all, trading success is a marathon and not a sprint.

About the author

Percival Knight
Percival Knight is an experienced Binary Options trader for more than ten years. Mainly, he trades 60-second trades at a very high hit rate. My favorite strategies is by using candlesticks and fake-breakouts

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