The Untold Truth About Forex and Binary: Which is More Profitable - Pt1

The Untold Truth About Forex and Binary: Which is More Profitable - Pt1

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0:00:02.560,0:00:08.720 [Music]   0:00:08.160,0:00:12.880 hello   0:00:08.720,0:00:15.679 guys welcome back   to my channel   hope you all are doing great it's kenyan   here again   so today we'll be talking about   the untold truths about forex and binary   trading   i've been getting so many questions   about this   people have been asking me and kenny   between   forex or banner which one is more   profitable   which one is more easier to trade and   so i think it's high time i or max the   real thing   and the real truth behind forex   and binary trading so welcome here again   okay so before i get started it takes   one second to like a video i would like   you to smash the like button right now   and if it's your first time you can hit   subscribe   okay so the unthought truths   about forex and binary trading   this is a youtube black job 2021 january   and the real question it's which is more   profitable to trade   some of them tell me that they feel like   quitting   and i'm like you don't need to quit that   both of them are profitable   so let me go on and take it gradual   and i'll give you guys all you need to   to know so you're welcome again   and i would advise you to stick with me   to the end of this video   please and please make sure you watch   this video to the end because i'm going   to unmark so many things i'm going to   unveil   so many things to you that i never heard   of   okay so introduction binary trading   um i know some of you like the right   knowledge about the   business about trading some of you came   into this business   through the commercial advertisements   you have been seen   some of them will tell you that they   they made uh   they made sincere amount of money   trading so   and so option um some of them they will   come and tell you they bought a new car   trading   binary option and you're like wow is   this easy   and some of you we just come into the   business   thinking that it's like a game you know   when you see those the adverts they   portray it as   if it's a game on your phone whereby   just   clicks higher and uh you make money   the price you determine the price   direction that's   it's all simple but i'm going to tell   you all those are adverts just to make   you come in and put your money because   they know you're   you're definitely going to lose the   money that's the real truth   so some of you since then when you   invested your money in this platform   you've been trying to   buy your own new iphone please   but i mean so some of you have been   trying to get your own new iphone and   you'll   find out that six months down the line   you have not been able to make any money   and now your mind is telling you all you   have to do you just want to get back   your money you just want to bring out   your money invested in this platform and   up to the until now you've been in the   platform so i'm going to call you a   trader   so it's very well it's very well it's   all good   now you're trading and you're in into   the business full time   so let me take you guys on what you   really need to know   what you really need to know about   binary trading and forex   so first of all binary option trading   it's called   all or not in form of trading when i say   all or not in form of trading   that means you get what you invest or   you lose   all you invest so this involves a fixed   amount   okay a fixed profit and a fixed loss   amount   so in binary trading you determine what   you lost   you could actually lose the particular   amount   you invested and you can actually make   some profit in a fixed   time so you can only lost your   intentional trade   amounts in fixed time   on a specific asset so banai trading   majorly deals with time you know for you   to be able to trade binary option   profitably   you need to understand what we call time   in price okay that's the two   basic things you need to know so binary   option trading   it's known as marginal high   frequency trading another name for it is   spot forex   so it's really really marginal   binary option trading deals with the   margin   and that's for binary option so let's   move over to forex and   let me explain to you what forex mean   0:05:28.000,0:05:31.039 forex trading applies more to spread   0:05:30.400,0:05:34.800 betting  

0:05:31.039,0:05:38.320 over different currency   pair you're like   determining the price difference between   euro usd and   yeah you you you're determining the   the price difference between   euros and us dollars so   you're determining the spread and you're   placing your trade in respect to   the price how far it's going to go   or how down it's going to go so   we trade an asset either to buy or sell   so why the price is trending in your   direction we keep   on making profit okay so   it's not a fixed amount and not   a no fixed expiry time it's also called   position trading   so in forex the moment the trade is in   your direction   you keep on making profit your profit is   not fixed   okay your profit is not fixed just the   way we have it on binary option   your profit keeps on increasing so far   the market is in your direction   and the same thing that you keep on   losing money   your loss is not fixed too so far as the   market   is not in your direction okay so   and there's no fixed expiry time your   trade could last   up to any amount of time   until you   [Music]   it meets your take profit target or you   lost the trade   so this is also called position trading   whereby you just place your trade and   you hold for the market to get your   destination so an example of forex   reading   let me give you a clear example if you   buy euro usd   at one dollar per pip that   the peep its means percentage in profits   that's what we calculate in forex   so each time you the the each time   the price goes up you gain one dollar   and if the price moves down you lost one   dollar that's   the whole thing about forex so the   moment the prices   keep on the the time the price is   trading higher   you keep on making money and if the   price is going lower you keep on losing   losing losing one dollar one dollar one   dollar   but you can control this with what we   call stop loss   target so having known   the basis of binary trading and   forex trading which it's   more simpler and risk-free that's   the question of so many traders   okay so so many people wants to know   which is more easier to do and which is   more profitable   but before i go into that   i'll i'm going to lay down some factors   that you need to consider   before choosing between binary option   and forex which one you're going to do   so   i would advise you with and see   all the factors then you can do your own   checks and choose the one that is best   for you   okay so the first factor   we're going to consider is time time   factor   in binary your trades are limited   by expiry time which is very very   critical your traits are limited   even though you choose your expiry time   to be at the end of the day   is still limited because in forex you   can't   you don't have any expiry time so   and in binary trading banana deals with   time in price i've said it before time   and price the time that is to take the   market to move from this level   to this level if you can measure that   time   that's the secret about binary option   trading and   that's the thing so many traders don't   understand   okay so you need to master what we call   time and price   so when the trade time is about ending   and the price is not yet   in your direction your heartbeat   increases   and you experience emotional hijacking   that's when you start   seeing that you you get angry you   increase your trade amounts   you get more scared you know you you get   fidgeted   and you you just   you're just lost and you really want to   get back the money   so it's not really easy   trading that especially when the market   is not moving in your direction   and the price the trade is the time is   going off   for the trade so forex   forex your trades are not limited by   expiry time   you can place your trade for a whole day   for two days for three days   even up to one month so in forex   your trade are not limited by expiry   time that's beauty   okay so you can stay in a trade   indefinitely in as much retreat   has not been stopped or closed so what   that means is that   like i explained earlier that your trade   can be running   if the trade is not running in your   direction   you can place a stop loss order   whereby you place on your trade and tell   yourself if the market   goes against me for about two dollars   let's say 20 pips   it should close that means the you'll be   stopped out from the trade   or you intentionally close the trade   let's say even if the trade was in your   direction and you close the trade   by yourself if you if you don't close   the trade or you don't get stopped   out of the trade you your trade will   keep on running   okay so that's what me that's what it   means your trade will keep on running   and then your trade never expires until   it gets to your   profit target so in forex we have what   we call   stop loss and cp does take profit   so if you don't if the trade is not   stopped or you didn't close the trade   until it gets to your take profit   targets if your take profit target is   there until the market gets there   that's when the trade will would go off   so you don't have any expiry time your   trade are not limited   and your trade does not expire so here   is a clear example of it   this was one trade i took in binary   option   you can see here that i placed a lower   option   i placed the cell and i think that was   about four minutes   when i placed the tree there the first   candle   was not in my direction and then the   second can do   went in my direction and then the third   one   by asking me and look at the fourth one   the fourth one closed a little bit above   my level so bro i'm very sure   because the market was actually   consolidating there   so later i found out that the market   still came down on the next candle we   had a red candle on the next one   so you can see here that this is what i   mean by time in price if this trade was   placed for three minutes   right i would have won the trade that   means one   two and three i would have won the trade   because i knew that the market was   actually going to calm down but i guess   it was   a little bit it was consolidating there   so after this one the next can do still   close in my direction that means if i   placed it for five minutes   maybe i would have won the trade so in   binary option   it's very critical you need to be   if not accurate you need to be 89   accurate   when choosing your expiry time   so that's it for binary option what i   mean by   mastering what we call time and price   and then this was one of my trade i   took in forex yeah this is one of my   forex analysis here i drew a line here   that i wanted to place it by i wanted   the market to go go higher from that   level   and the market   was around here i think the market was   already here   so i was expecting the market to move   high   and hit that line again and then starts   going higher so that was my analysis   so here was what the market did the   market   moved high three day down elite two and   then came down heavily   around this level before it went higher   so let's imagine here that this was my   trade   and my stop-loss was around here let's   see this was my stop-loss level   and this was my take profit target this   was my take profit target   so if this trade was running you can see   that the trade was not really   in my direction at the first time at the   first period   this is an hourly chart so you can see   that the trade   was not moving in my direction in the   first few hours   but after this movement you can see that   the trade   started running in my direction so if   this was binary option and i used   maybe two hours you can see after this   one   two three i might have lost this trade   or the trade might have closed   okay you can see i might have lost the   trade but since   it is forex so far the market has not   hitting my   stop loss level and my take profit the   market   the trade will still be running so you   can see after i had   then i started going in profits and the   market started going higher   so that's basically the difference   between   binary option and forex so but that's   not all we see have different factors to   consider before you can actually choose   between binary or forex the one that is   more profitable to you   so the second factor is what we call   risk factor   and emotion now in binary   your risk is determined by your trade   amounts   okay like i said you have a fixed amount   and a fixed size of street so if you   want to   place a trade you can actually tell the   markets or   puts the order that you want to use two   dollars for the trade   and if you lost you're gonna lost two   dollars   okay so that's how it works in binary   so your trade is fixed your risk is   determined you you can determine it   but this requires high   emotional regulation so make sure you   risk very small   okay if you're trading try as much as   possible to raise   a little fraction of your account i   would advise at least two percent of   your account   on each trade it's okay   don't go more than two percent so   you can't do away with emotion okay you   can't do it with emotions in trading   because human beings we are all   emotional being   okay forget about those people that tell   you   do it with your emotions put your   emotions aside   and trade is a lot you can't do it with   your emotions we all are emotional   beings   okay but what you can do is that you can   regulate   your emotion you can control   your emotions not to affect you in   trading   so for you to do with your emotion that   means   unless you're a robot okay unless   you're a robot you're not a human being   that's when you can   trade without emotion now talking about   robots   that's another factor to consider when   choosing between binary options and   forex so   robot and automated system now let me   talk about that   robot and automated systems   using robots or automated systems   in binary is very risky i'm going to   tell you that now   listen carefully is very risky and it   can lead to   account termination or withdrawal denier   because so many people complain that   they block their account   or they don't want to give them their   withdrawal   and some of them the ones that   reported to me i asked them how did it   happen   and there was a guy i knew that they   blocked his account and he told me that   he used robots to trade and the   robot made about crazy   um amount of money in a very short   period of time   so and they blocked his   trading account honey was like they even   blocked   three of his friends because all of them   at the same time   use that same robots to trade on their   accounts   so you can see binary options the they   actually   frown at using robots or automated   system i don't know if it's working for   you i stand to be corrected   but i'm telling you that for binary   option   i wouldn't advise you to use robot or   automated system and then   because binary options brokers they   immediately do not accept   robots or automated system for the one i   use ik option   i'm very sure they don't they don't   really accept it they frown at it   it's on their is on their terms and   conditions so   if you're thinking about using robots i   would advise you   you rethink and stop it   and then hedging of positions are   prohibited   in binary option hedging of prohibition   of   of positions are prohibited   what does that mean let's say you want   to place a trade and you place   a buy with two dollars   and you find out that the market is not   buying or   the market is selling and then you place   another sim trade when this one is   running   with let's say five dollars for the   market to sell that's all hedging   means that means you're buying at the   same time and you're selling at the same   time   in binary options i think it's   prohibited you're not advised to do that   if you make money   heading your position i don't think they   will allow you to withdraw the money   that's how some of you get all this   withdrawal issue   and i just laugh because there was a   time i wanted to withdraw my   profit in binary option yeah let me say   this   please listen carefully so   i made some good profit and you were   like when i placed the withdrawal they   told me   i won't forget it sent me a mail that i   should verify my trades   so they actually told me to   verify   they told me to verify my trades whereby   they told me to send the   trade amount i should tell them the last   five trade i took   okay the last five trade they said i   should send them the pair   the expiry time the trade amounts   and everything in the last five treats i   took   so when i replied the   email i sent them the last five trades   the pair the trade amounts   the expiry time everything   before they could actually send my   withdrawal to   my account to my script so   imagine if i was hedging my position   how would i be able to   send them my trade summary the trade   amount the three disparity and all that   you see so hedging positions is not   really   the right way to go about it   in trading especially in binary option   i hope that makes you understand more   so moving forward we talk about   risks and emotion in forex   so talking about risks and emotion in   forex you lose   undetermined amount of money   so in forex you lose on the undetermined   amount of money   but you can control this by setting a   stop loss order   due to your risk appetite like i said   two percent of your account it's okay   okay the risk appetite is how many   percent of your account are you willing   to risk   for any trade and then the second one   is that it requires less emotional   regulation   yes except that you're scalping on the 5   15   5 or 1 minute time frame but if you're   trading for a day   you could place your trade and relax   for the trade to run throughout the day   so it's not like   um binary option whereby you're so   you're so eager to wait for the expiry   time of the trade in forex you can   actually place your trade and relax   and you can even place your tree for a   whole week and just   forget about it so i think forex is a   little bit   less emotional except you're scalping   whereby you're trading with a lower time   frame of 15   five minutes and one minute that one is   short-term trading   that one is like you're just some people   call it gambling but you're   really scalping out of the market that   one is   that one requires that one is very   emotional but   if you're trading normally for a day or   two   i think that one requires less emotions   so trade methods   uh some treatment thoughts we have in   0:24:21.200,0:24:25.200 forex   0:24:21.840,0:24:28.080 are intraday intraday means at least   0:24:25.200,0:24:28.559 one or two days your   trade will last at   least   one or two days and then sweet trading   swing trading is that your trade will be   up to about three weeks or more   two to three weeks that's swing trading   and then long term trading   is for monthly or   you know quarterly three months wherever   you take a trade and the trade will last   for about one to three months   and then scalping is when you're trading   for five minutes 15 minutes and   you know one minute so these are   different trade methods we have   in in forex so you could actually   choose the one that is more better for   you to   trade and the one that is more   convenient let's say you have a job   you can actually look at the market or   look at the chart every day i think   swing trading should be   better for you wherever you do your   analysis on weekend and then you take   your trade and the trade will   run for you or long term trading or   maybe intraday   so but if you can't be checking your   trades and per hour   i don't think you can do intraday or   scalping so   i think swing trading or long term   trading should be   better for those that have a very   consuming   a time consuming job so   then talking about robots and automated   system in forex now   robot and automated system   the use of this uh electronic advisor   some people call it electronic advisor   ea   are widely accepted in forex yeah these   are widely accepted in forex   so many people use it to make money   they use it to trade and all that   so hedging position   aging of positions are still accepted in   forex   i've seen people that make money and   through this medium they still withdraw   their money forex brokers they don't   really   foreign brokers they don't care or   bother about robot and automated system   because it's a large market it's a large   market so you can actually do all those   things and get away with it   your withdrawals are safe and approved   even though you use   hedging or you use electronic advisors   or you use robots to trade   okay but notes this will make you   profitable in the long run i would never   advise anybody to   trade with all these patterns okay   that will make you profitable in the   long run so   i hope this video is engaging if you   like it please drop a comment   click the like button while we continue   so the next one the next factor we're   going to be looking at   it's profitability profitability   now when we talk about profitability in   binary   you can make fast and good profits in   binary   yes that's true in a very short period   of time   you can make fast and good profit but in   risks   it's palatable the risks is palatable   whereby you could actually lose   your whole capital trying to do that and   you could actually double your capital   within   one or two days or anytime you can i've   seen people that use   all their capital to trade in binary and   they make it   and they withdraw so binary it's   it's quite a very fast   medium to trade and then   you can hardly offset losses in a short   period of time in binary option   ah i tell you you can hardly upset   losses in a short period of time now   what that means let me explain   if you lost five treats okay if you lost   five street rates in binary you have   serious work to do   now in binary if you lost five trades   that's like   to the last that means we lost ten   dollars   for you to recover this ten dollars you   have to trade and trade and trade   and i doubt if you can actually trade   um with two dollars and win five trades   even if you win five trades   you won't actually get exactly the ten   dollars   so it's pretty much a serious work to do   when it comes to binary   and trying to upset your losses except   you want to   use martingale which is quite a risky   thing to do   i would advise you to do that if you   don't know how to   work with it using martingale is another   route to   losing all your capital so there are   things you need to know before you can   actually use martingale so   when you're trying to upset your losses   in banana option   it's quite a serious work but there is a   sustainable   and profitable system in binary trading   0:29:32.080,0:29:36.240 okay  

0:29:32.559,0:29:39.279 like i said there   is a sustainable   profit system okay i didn't say strategy   no to the word   i didn't say strategy i didn't say   pattern there's a system   that leads to profitability i'm going to   tell you that   later as we move on so that's about   binary option then moving on to forex   moving on to forex you can make good   profits   in forex yes that's true but not fast   like i said not fast i've seen people   too that make   money in forex very fast but you need a   high   medium of experience and a lot   understanding about the market to do   that you can't just go as   a beginner and make fast profits in   forex   and i would advise that okay i want to   advise that   so it's not a get rich quick scheme   forex is a business   forex is really something that you have   to do   on a steady okay so i would advise you   starting out in forex you can aim at   least   20 to 50 percent of your account or your   equity   monthly return forex is an investment   you could aim 20 to 50 percent of your   capital if you can make   20 monthly i'm telling you it does a lot   i wouldn't even i would have not even   put 50   that's too much but if you can keep up   with twenty percent of your   investment monthly return i'll really   be proud of you and i think that's the   best advice you can ever get   some of you might say 20 is small i   wouldn't advise you to start forex   with anything less than 400 if you want   to trade forex   and you want to make profit you want to   do it at the business this is the kind   of capital i will advise you start with   okay if you're starting out with hundred   dollars or anything less   maybe that's for practicing and gaining   experience but if you want to make   profits   20 or 400 dollars should be at least a   tangible amount of profit   okay so in forex   you can actually lost five trades   consecutively   and win three trades and you still be in   profit   now that's the beauty about forex you   could actually lost five trade   and if you win three you been profit not   like   um binary option whereby there's a lot   of work to do unless you increase your   trade amount which is   very risky to do so let me give you the   example then in forex there is what we   call   rick's reward ratio   okay there's alcohol risk to reward   ratio   so it's like if i want to place the   trade   let me see i want to use a risk reward   ratio of one is to two   now what i want is institution means is   that   if i lost a trade i'm gonna lost one   dollar   but if i win a trade i'm going to make   two dollars   i don't know if that's clear now let's   look at how it works now   if i place a trade let me see i bought   euro usd   around this level and if this trade hits   my take profit targets i'm going to make   40 dollars okay let's see that's like 40   pips   and if it hits my stop loss level   i'm gonna lose 20 dollars okay that's   like 20 pips   so that means one is to two if i lost i   lost 20   if i win i make 40.   i hope that's clear so if i lost   about five trades if   five of my trade hit stop loss that's   like   20 times five i'm losing   100 dollars in 2-2 okay   then if i win three trades in forex now   if i win three treats   that's like three times four does   three times four c does a 120 dollars   okay so do the math 120 minus   100 at the at the end of the day i'm   still having   20 dollars profit okay   so in forex you need to understand this   risk to reward ratio   and that's how you become profitable   in forex okay so you could actually lost   five trade and win three   and you're still being for in profit but   there's still a sustainable   profit system like i said system in   binary   that can do this for you okay but   go on that later so   the next factor we are going to look at   is location   now location is another factor to   consider   before you could actually choose or tell   if   binary option or forex is   good for you so binary option is not   widely accepted okay banana option   is not widely available and accepted in   every part of the world   like in united states europe canada   they see that's gambling yeah some   people if they frown at this binary   option   they see it as gambling but it varies   due to brokers compatibility   like in u.s iq option is not   available there you can actually use iq   option if you're in us   some of them use pocket option there is   one they call pocket option and   i'll start i think i'm gonna start   making tutorials on pocket options soon   so it's not really   available let's say you want to use iq   option now when you're in us you can see   that you're limited because of your   location   so binary option is not really   widely available in all part of the   world   so moving on to forex for forex you can   actually treat forex from any part of   the world   from any part of the world you could   actually trade forex the meta 3.4   it's widely accepted all over the world   meta 3.4   that's the software we use in trading   forex   and it's really really available all   over the world   because forex is the largest financial   market in the world   with the daily turnover of about six   trillion dollars   every day that is being invested in the   forex market   so that's the largest market so it's   widely   accepted and available in   every part of the world so that's   about location how you   tell if   if you should be trading binary or forex   so having said all this i think you have   gonna let you   you have gone a lot i've covered a lot   on this video   i'm going to stop here and i'm gonna   come back for   the part two okay   so let's take a break i'll stop the   video and i'm gonna start the part two   and you continue   this video from there so but i hope   these   few points have been helpful please do   also comment if you have any question   ask your questions   i'm available i'm going to do my   possible best to   answer every questions so so guys   um have a wonderful day   just give me some time i'll come back   for   the part two the second section

2021-02-05 00:32

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