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