In Breaking Financial Fetters, I had mentioned that my impatient nature and a quest for some quick bucks in 2016 got me excited about Binary Options Trading. As a young investor, I needed to be schooled by time and life in patience. I first started my Binary Options trading by opening a trading account. I registered with the platform, iq options, which was quite popular in Europe and Africa but isn’t available or accessible to United States clients.
“Patience is a bitter plant, but it bears sweet fruit.” — German Proverb.
I started by trading with smaller amounts like $5 and $10 because I subscribe to the cliché “only trade with money you can afford to lose.” I had big dreams of making huge profits in United States Dollars (USD). This prospect, I believed, would make me rich when I convert future USD earnings to my local currency back in Nigeria. I was motivated to make it then and now. It’s not enough to have big dreams. It must generally be accompanied by motivation in other to attain your objectives.
I shared my adventures with Binary Options on social media, especially on Instagram. I really did believe I’d found the holy grail to earning via Forex while in a Third World Country. Yes, I made profits sometimes, and I lost money sometimes too. I really enjoyed the adrenaline rush that came with entering a trade and hoping it closes in your favor in the next few minutes. This was pure gambling, now I realize. I must confess that I lost more money than I made. The odds were not always in your favor, to say the least.
According to Investopedia, Binary Options are “financial options that come with one of two payoff options—a fixed amount or nothing at all. That’s why they’re called binary options—because there is no other settlement possible. The premise behind a binary option is a simple yes or no proposition: Will an underlying asset be above a certain price at a certain time?”
Basically, you look at the price chart of the asset you wish to trade. You then decide if you believe the price will appreciate or depreciate in the next 5 minutes, 10 minutes, 15 minutes, or by the end of the day/week. In my opinion, that is mere gambling or the practice of playing at a game of chance for money or other stakes that may be in question. Why? Because no proven strategy supports any options trader’s analysis of the direction, an asset’s price will go in a short time frame.
A lot can happen within a short timeframe to cause an asset’s price (e.g., Bitcoin) to reverse course (temporarily) in a short time frame. It is a very volatile proposition that is hard to predict. Trading via Binary Option is no different from visiting a casino to gamble or going to your local convenient corner store to buy scratch tickets or lotto. By the way, this can quickly become very addictive. Two outcomes are possible, you either make some money or lose money. In most cases, you lose more often than you win—it is a southbound avenue journey and adventure. This is precisely what you’ll encounter trading via any platform that entices you with the possibilities of quick profits.
Take a cursory look at all the internationally recognizable wealthy people you know. Regardless of their race or nationality, there is one unique factor with each of them. The factor is that none of them became financially independent by trading Binary Options. From Elon Musk to Jeff Bezos, Mark Zuckerberg to Bill Gates. Binary Options isn’t as popular in the United States and Canada as investing in stocks and Exchange Traded Funds (ETFs). Suppose Binary Options weren’t an unreliable avenue to wealth. In that case, I am confident that it would be more accepted in the United States than it has been for many years.
The fact is that there really is no shortcut or quick pathway to genuine, long-lasting wealth and financial freedom. Suppose you truly desire to achieve your dream of financial independence. In that case, you must be ready to nurture the virtue of patience alongside embracing the assiduousness of hard work and intelligent work, as long as it takes. We live in a fast-paced world today, and many people lack patience. Everybody wants to make it big in an instant. However, on many occasions, life does not always work like that. A German Proverb stipulates that “Patience is a bitter plant, but it bears sweet fruit.” Hence, I urge my readers to learn patience and bear the positive fruit of it in time.
In our quest for genuine wealth or financial freedom, I believe it is noteworthy to study the life and investment habits of financially independent individuals who inspire us. How did they begin their journey to wealth? Did they identify a communal or global need and focused on providing a solution to it? How have they grown or sustained their wealth? Did they diversify their earnings by investing in other businesses with huge growth potentials? However, the common denominator of all who have succeeded is patience. They perfected their craft through patience and have become their best selves. In the wise words of Leo Tolstoy, “The two most powerful warriors are patience and time.” Make sure they are serving in the barracks of your process.
“Learn patience in your process to become your best self ever. Persist in patience always. Embrace the prospect of growing in patience. Success comes to the patient.” — Ogbonnaya Agom-Eze.
Having identified that, a pathway to financial freedom which appears promising and lures us with potentials of quick profits—in the short term—usually ends in regrets and loss of finances. Maybe it’s best to make changes to our plans for success and financial freedom by thinking long-term. Play the long game once you have plotted the right strategy for your process of becoming your goals. Move forward by identifying trusted and tested vehicles guaranteed to get us there in time.