NEW YORK, July 17, 2017 /PRNewswire/ -- Binary options trading has become attractive to a growing number of people because these options are easy to understand and require only a small amount of capital in order to start trading. They are called "binary" because there are only two possible outcomes in a trade: you get a certain fixed amount or you get nothing. This is dependent upon the direction of the market and the price at the time of expiry of the option. If the trader was correct in regards to the price and market direction, he gets a specified amount. If not, the option becomes valueless. Naturally, since there are only two potential results, it is very similar to tossing a coin. Thus, this kind of options trading has been compared to gambling, and indeed it is, for people who simply get into the game without adequate knowledge and preparation.
Yehuda Belsky, who is a highly experienced trader, has created a system that takes some of the risks out of this kind of options trading. Belsky has the knowledge and experience because he has traded various financial market instruments for over 20 years, across a range of financial institutions. For instance, he was Innovative Capital's Hedge Fund Owner and Operator for five years before moving on to Y Trading, LLC. Today, he is their Head of Derivatives Trading.
Throughout his career, Yehuda Belsky has worked with different methods of trading. However, he noticed that this was excluding people who did not have the financial capability or understanding to have a brokerage account. These are the very people who usually decide to invest in binary options because such options require a relatively small amount to trade. It is possible to invest any amount, although there is usually a minimum, for instance, $100, and a maximum, depending on the broker.
He decided to focus on binary options. In trying to understand how to eliminate some of the risks involved, he set out to investigate the different strategies that people use, and why these usually fail. It quickly became apparent that, because the amount invested in binary options is so small, people felt that they could afford to lose it as well, always hoping for that time when their fortune will then reverse and they can recover what they lost and even gain some profit. This is, indeed, very similar to gambling.
Indeed, through his research, he came across a number of people who have lost huge sums of money, often without realizing it because they were trading in small amounts. Nevertheless, Yehuda Belsky felt that the risk could be reduced at least to some degree if certain strategies were followed. To achieve this, he developed the "Blended Model", which is a strategy that enables him to make more accurate predictions of how assets will fluctuate.
At present, there are two accepted strategies for binary options trading. The first strategy is based on watching news reports, and drawing conclusions based on these news items, essentially guessing that the markets will follow the predicted trend. While this is a very dependable model in stocks and options, the world is now too fast-paced for it to remain accurate for binary options. The second strategy is the market behavior model. Usually, stock market traders use this, studying historical charts to determine whether a stock price is likely to go up or down. Again, this is a good model for predictions, but not for binary options because they move so quickly.
What Belsky did was take the strengths of both strategies and combine them to create the Blended Model. What this means is that news item predictions are cross-referenced with historical charts and data, to give a far more accurate prediction than either of those two strategies could do individually. The model uses a range of other calculations and variations as well, which include news indicators, betting strategies, market behaviors, changes in the value of the asset over a historical time period, and more. It looks at all possible circumstances and, based on that, determines whether the asset is likely to gain or lose in value.
Yehuda Belsky is a highly respected financial expert and trader, and for good reason. His experience and his dedication to making trading a real possibility for everyday people are things that set him apart from others and have earned him the respect of market specialists as a whole. His honesty is another reason why so many people pay attention to what he says, and that shines through once more in his Blended Model. He warns people that, while his model significantly reduces the risk of binary trading, it does not remove the risk entirely.
SOURCE Yehuda Belsky