Anyone heard of learnbinaryoption.com?
By kids1412
@kids1412 (2)
Malaysia
August 3, 2011 4:33am CST
Has anyone ever heard or come with this site learnbinaryoption.com? The admin of the site claims that you will make money in binary options if you follow his method. There are no sign up fees or any membership fees that need you to pay, in fact, you don't even have to sign up. The admin is hoping for donations from people that have made money in binary options. So has anyone tried out the method yet?
2 responses
@owlwings (43910)
• Cambridge, England
4 Aug 11
Binary options uses the Forex or Stock Market variations over time and involves betting on whether the value chosen will increase or decrease over a given time period (15 minutes, for example). There are only two outcomes - a win or a lose (hence 'binary' options).
You are not actually trading in Forex or Stocks, you are betting on a given outcome, just as in a horse race, and the 'odds' offered at any particular moment are generated by a complex algorithm (which will vary from site to site) which is heavily influenced - if not completely driven - by what others have staked on an outcome.
The method advocated by 'learnbinaryoption.com' is a common ploy, often advocated for use on roulette sites (with disastrous consequences because the win/lose percentage is NOT 50/50 but something like 48/52 and such sites limit the maximum stake and detect when someone is trying to use this system). It involves staking a basic amount (here a minimum of €10 or $10) and, if you lose, multiplying your stake on the next bid up to a maximum number of times.
It is claimed to be "mathematically sound" because the likelihood of a run of a particular number of losses decreases according to a well-known and accepted mathematical formula which uses the overall probability of a single outcome to calculate the probability of any particular sequence of outcomes using the terms of the expansion of p^n + q^n = 1, where p is the probability of a single success, q is the probability of a single failure (which is always, by definition, equal to 1-p) and n is the number of trials.
In fact, however, the 'soundness' of the system - in other words, whether or not one makes a profit overall; is greatly influenced by both the individual choosing to bet (wisely or not) and by the maximum amount one is prepared to - or can afford to - lose (and therefore the maximum amount you can afford to stake next time) and also by the assumed success rate of 60/40 and the fact that doubling or tripling the stake after a loss is NOT really governed by the equation stated above but by a different calculation.
As with any betting or gambling situation, it is very easy for the inexperienced person to let their emotions run away with them, leading to huge losses. Any person who thinks that they will necessarily make good profits using this system should VERY SERIOUSLY consider whether they are emotionally stable enough to even think about it!
