Heavy Losses Suffered Day 2

Dec 10

Heavy Losses Suffered Day 2

“OK – I’m giving up NOW!”

 M  y confidence suddenly takes a blow. Crisis stations! Ok, so I’m new to this and I always suspected I would perform badly in the early stages. What I’ve lost financially so far is more-than-likely a drop in the ocean compared to many, but £800 is a lot of money to me. You know, if I carry on like this, I’m out before I’ve started.

Note to self – Must get on to the right path as soon as possible.

So what went wrong? 60-second-options went wrong. I felt like a rookie gambler, out for my monthly pimp at the casino. There I was, in the early hours of the morning, guessing which way the price was going tip over the next few seconds. It felt wrong and it felt as if I was chancing my luck. Let me tell you right now, dear reader, the Martingale system sucks – very badly indeed. You need to watch the following video and know that it doesn’t work… Well, of course it doesn’t work.

This video describes what is known as the Martingale effect or ‘strategy’ – When used in binary options, it’s actually a very stupid way to approach trading and you will lose your money pretty quickly as it spirals out of control. To find out more about Martingale and to demonstrate what happens when you try something like this, have a glance at my strategies page. I detail it all there.

So early this morning, I lodged £1,000 at Traderush – They were offering up to 40% bonus money if I deposited that amount – Free money always sounds good – Although I was to discover later that there was a catch to this, ‘free money’ (obviously – nothing is for free, right?)

When I started, the markets were just opening Monday morning – Well, the Asian markets anyway. I was astonished at how slow the pips move and stall in the early hours of trading. Against my better judgement, I started ‘trading’ compulsively using the 60-second trade options. I must admit, it did feel exciting, watching the charts and seeing the price rise and fall. When I thought it had ‘nudged’ up or down significantly and was due to turn, I placed my bets – £5, £10, £15, £20 – It didn’t matter. In the early stages, I was actually doing very well indeed. At one point, my £1,000 was transformed into £1,075 relatively quickly.

But soon lady luck caught up with me and I was hedging my bets, doubling-up to try and re-coup losses. To compound my failings, I thought I would try the Martingale strategy as described in the video above. I can honestly reveal to you that it doesn’t work. Indeed, as I say on my strategy page, Martingale would have a chance at working well if you were certain you could get it right in the first three or four trades. But because of the sheer speed of 60-seconds – It’s impossible for any trader to knowingly favour the direction of the price within that minute time-frame  Thus, the only real ‘strategy’ here as such is taking an educated guess based on current resistance and support levels. Following an alleged ‘popularity’ scale is pretty dumb and the scale is inaccurate (and the broker sites tell me this too). In fact, I was doing much better predicting based off twists and turns – riding on the wave of the price, that any method adopted from that video.

So from today’s grand loss of £787.22, I learnt five very valuable lessons which I shall share with you now.

  1. Stay away from 60-second trades, especially if you are new to trading on the binary options platform. It’s gambling – pure and simple.
  2. Be very wary of strategies you come across on the internet. If it’s too good to be true, it probably is. There’s no quick and easy way to make money at this, I am learning. If there was, everyone would be doing it and everyone would be financially wealthy.
  3. Martingale sucks – Don’t keep doubling-up your money in an effort to chase after losses (throwing good money after bad). It’s not only foolish, it’s crippling and you will be ultimately much further behind very quickly.
  4. Don’t let your emotions guide you. I got angry at one point and instead of trading £5 or £15 a time, I used a couple of £200 trades quickly in succession… and lost them both.
  5. Try and pick a respectable (preferably regulated) broker. They actually have some pretty nice people working for them, as I am about to tell you now…

The Morning After

I dragged myself off to bed at 5:30 am. I was shattered yes, but most of all I was extremely depressed. As mentioned, I randomly threw £200 ($300) on a 60-second ‘bet’ without any consideration, as if I wanted to punish the system. I lost that trade and my senses – I lost my advantage of a few respectable pounds to fall into the abyss, losing nearly all my initial deposit  – All in the space of two or three hours. I really felt like giving up.

In the morning, I daren’t tell my wife about the loss. She knew something’ was not right with me, but I kept it to myself.

A short while after, I receive a call from a sales analyst from TradeRush. I tell her about my experience and she agrees with me that I was foolish to operate the way I did. Some interesting statistics she could tell me that don’t appear on my view of my account – Apparently I made in excess of £4,000 worth of trades earlier. So I processed 4 times my initial deposit – There was a lot of winning in there. As a beginner, apparently I did pretty well – But randomly trading high sums through guesswork at the end was my ultimate downfall.


Moving Forward

So what now? The analyst suggested I take out a ‘Gold’ account which includes the use of an analyst and strategist to personally hold my hand – Help to guide me how to trade properly. With TradeRush, a ‘Gold’ account is a deposit of £5000. I was also cleared for a few thousand as ‘bonus’ money if I did this – But if you do take ‘bonus’ money as part of a deposit deal – Be warned… In nearly all cases, you will be required to spend 30 times that amount of money before you would be allowed to withdraw any money at all (including profits and all your original funds).

I found this deal too risky to take, especially considering my knock in confidence earlier. Losing nearly £800 was a great loss suffered and I needed to be sure I could perform binary option trades with some sensibility before going for something I couldn’t leap back out from.

I refused the bonus money, but agreed to open a ‘Gold’ account, so that I could benefit from a superior service to help show me how to make better trades, learn how to watch the market, recognise signals and so fourth.

And so tomorrow begins a new day. I have an appointment tomorrow morning with that senior strategist who will personally show me there is a better way to trade in binary options.

Until then…


 Brokers tried so far: TradeRush.com; AnyOption.com

Strategies tried today: Martingale Strategy, intuitive feeling

Profits made today (Day Two): -£787.22 (loss)

Cumulative total profits: -£789.72 (loss)

What went wrong: 60-second-trades



  1. Jeff Dalton /

    I would recommend that anyone starting with Binary Options watch this video first – it shows mathematically how one is expected to lose more than win

    • Hi Jeff – Thanks for this comment – Yes, you need to have a better than 58% rate to succeed at Binary Options – If you can consistently BE RIGHT more than 58% (the break even point), then that is the only way to beat the brokers.

  2. Jonathan /

    Thank GOD you didn’t give up else you won’t have been a successful trader today.
    But seriously, traderush assigned a specialist to teach you how to earn money from them? Its like teaching you how to rob them. How then would they make money if they were to teach everyone like that?
    I never knew that type of service could be real and profitable. I have had lots of phone calls in the past (bforex.com and markets.com) but I ignored them because I thought it couldn’t be a profitable trades.

    • admin /

      The reason they teach you is because you will start to feel more confident and thus deposit more money, and thus probably lose more trying!! The methods they teach are real and can be quite helpful actually, but the truth of the matter is – That no matter how much knowledge you grasp from those sessions, it may help you a little, but unlikely to make you one of the rare 5% that actually make money in binary options. This is because it takes more than just knowing Bollys, or news alerts, or anything else they are teaching you. It helps, yes. Yes it does. But will it put you into the consistent 60%+ ITM band of individuals? Probably not. They know this of course, which is why they will help you gain the knowledge.

  3. Jonathan /

    Oh! One more thing.
    Where did you get the 60 seconds strategy? Is it one Rajat Kapoor of http://www.thereal60secondsprofit.wordpress.com who also is the admin of http://www.binaryoptionswinningstrategy.wordpress.com?
    He sold a strategy to me which I consider a crap.

    I have also had my share of loss to martingale strategy introduced to me a while ago.

    • admin /

      The 60-second strategy I use for the signal service is just price action. I use Bollinger Bands as a guide, but they don’t trigger a signal for me. It really depends how price is moving in the markets to know if I should start a trading session or not. For example, if price is moving up and down the 1M wick like a pole dancer, I don’t even bother to start trading – It’s useless for me. I plan to go into more depth about this in a future post. As for someone who sold you a strategy – Always be wary of crap like that. Like I have said elsewhere on this blog somewhere, the best stuff out there is completely free.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>