[dropcap]I[/dropcap]n the past, the dream of making big money with shares and securities did not fail a few. There are many reasons for this: one trader may have bet on the wrong stock horse, another may have sold at the wrong time and the next may have miscalculated or lost track of the market. Trading is anything but complicated: It only depends on the right strategy.
Trades – an always speculative business
However, it should first be pointed out that there can never be a 100 percent secure trade. This is simply because securities trading is always a speculative transaction. However, the transaction can always be worthwhile: High returns offer additional income. So-called binary options have turned out to be a special gold mine: Yields of up to 90 percent are possible. More information here.
Binary options: The fast money
Binary options are a relatively new financial instrument that allows investors to benefit from both rising and falling prices. Binary options are already possible with only a small amount of capital. In a price, an investor either bets on “call”, the rising price, or on “put”, the falling price. So if a trader bets on “call” and at the end of the term the price has actually risen, he has already made a profit – he is thus “in the money”. How much return a trader receives in this case has already been determined; in most cases it is between 65 and 85 percent of the bet. If, however, the price has fallen although a trader has tipped on a rising price, a loss transaction is recorded and the investor loses his complete stake. Binary options are therefore merely the directional decision of a price and even a falling price can help an investor to make a profit.
Day trading as a daily investment
But binary options are by no means suitable for everyone. If you don’t want to take such a high risk, it’s better to use other trading strategies. Day trading, for example. This is just as fast and short-lived as speculating on binary options. As the name suggests, positions are opened and closed within the same trading day. The aim here is to profit from even minor price fluctuations. Although day trading also entails risks, they do not differ from trading risks, which can also occur over longer periods of time. However, price fluctuations over one day are usually much less than over a longer period of time. Another risk factor in day trading is reaction time: Especially when trading securities over a short period of time, it is important for a trader to be able to react quickly – the trading software used should therefore also function flawlessly.
Swingtrading – more money on your account in a few days
So-called swing trading also makes securities trading possible over only short periods of time – usually one to four days. This strategy also aims to generate profits from price fluctuations. A position, for example a stock, is only held for a few days before it is sold. With this method, too, it is essential to keep a close eye on changes in the value of various stocks. Well-designed swing strategies often help traders make profitable use of short time intervals. However, some conditions are also necessary for a trader to succeed in swing trading: traders must be able to check charts and data quickly. In addition, historical information helps to verify the right time to buy and sell. This way, traders can score with their experience in this process – for newcomers, on the other hand, it could be problematic to analyze data quickly enough.
Developing the right strategy
If a trader is too insecure or needs support, so called brokers can help with words and deeds. There are a few points that an investor should pay attention to when choosing the right broker. For example, it is important that a broker provides a certain level of security and a free trial account. In addition, awards help to identify a good and reputable broker more quickly and to separate him from the black sheep on the market. If you already have several years of professional experience and some awards, you may offer more security than a newcomer without such awards. In this case, the term “security” means, among other things, the official supervision under which some reputable brokers stand.
