Binary options simple investment or risky gambling?
Binary Options is a relatively new product on the market of financial instruments. Its biggest advantage is high affordability and simplicity of investment. Binary Options gaining wide acceptance particularly in those people who had never been in contact with the financial markets, becoming a kind of ladder to more sophisticated forms of investment. Many people are not successful after several attempts, ask yourself the question “What to do to make a Binary Options.” In this thread we will just this subject and in simple 5 steps will show how to dramatically increase your chances of success in this field.
Demo – his first steps on the road to investing in options you should direct the virtual account. Until recently, almost no broker had this type of service, but fortunately at the moment many of them allows customers to use the virtual account. In time, perhaps all brokers option should offer the possibility of testing as it does on the OTC market.
“Do not waste your money in the learning process of investing in Binary Options
Type of investment – fundamental thing before choosing a target broker is targeting its way to specific assets and more specifically the choice of which option you wish to specialize. A common mistake when investing in Binary Options is entering into all kinds of instruments offered by the platform. This malfunction, which in most cases leads to a zero deposit. If you want to be successful then you need to focus. Why type of investment is more important even before the selection of a broker will describe in Section 3. Remember that in life and in the stock market are the highest paid professionals in the field.
Each particular type of Binary Options requires a unique approach to the subject:
• Separate investment system
• A separate investment plan
• Another analysis
• take the opposite Money Management
• Specific financial instruments on which works best.
“We specialize in a narrow field. Do not try to play all the available instruments and types of Binary Options. ”
Broker – any of the brokers available for individual customers has its own strengths and weaknesses, aside from service platform thing that is worth noting is the return on investment.
For example, one of the brokers offering the return of Option One Touch of up to 670% while the competing broker offers only 100% return on investment, despite the fact that the action of the Option One Touch of these brokers is different, there is no doubt in the more profitable to invest in this particular kind of option.
However, the second with brokers offer a high rate of return on ordinary Binary Options in the amount of 85% and first on the same Options offers a 75% return, the difference is noticeable.
Each even a small difference in the rate of return on investment is a milestone towards profitability. Even a small difference in the return from the perspective of dozens of positions makes the average strategy becomes very profitable, and the other side a good strategy with a low return on investment is not very effective.
Following the items above, the novice investor greatly increases their chances of success in this form of investment which are Binary Options. Naturally, this is not all the knowledge you should learn to make “real” money, however, by following these simple steps, the investor will be directed to the best path toward powerful profits.
It may seem that in this case Binary Options are only apparently simple because you still need to not put a lot of work. Yes of course. Their simplicity is not that one can simply click the red or green and make money. Their simplicity lies in the elimination of the most difficult aspects of trading which is the proper definition of the level of maximum loss, choosing the position in which The same stop loss will be smaller than the potential profit.
Added to this is the correct selection of the size of positions – and playing on different currency pairs and to contracts for the shares of the different stock exchanges in different currencies it can be a headache. One pair has an average daily volatility of 100 pips and the other at the level of several thousand pips. To pip has a different value, so you need to choose an appropriate position. In addition, there are different costs of transactions should therefore calculate the ratio of volatility / cost and choose a pair with the best ratio. Much of this is true?
A Binary Options in the absence of transaction costs, we need only determine the direction (or to what level has reached the price), we do not have to worry about counting the maximum loss risk is very easy to calculate because we risk an adequate sum. 1000zł have known that 100 PLN to 10% of the risk, which is more than enough and reasonable risk 1-3% or 10-30zł a transaction – simple. While on Forex,, futures, we must wade through conversion pip the currency of our deposit, determining loss, the required margin. In addition to the stock exchanges and contracts we are daily exposed to vulnerabilities that can occur at the session.
Just imagine kilkunasto rate gap eg. For KGHM in the opposite direction. Just to the collapse of copper prices in the night or a random phenomenon in the mine. If we have open contracts for this company, we might as well be zeroed account of not having any effect. What more can we be forced to replenish the deposit!
Sometimes I hear opinions that Binary Options is gambling. So stepping blindly into Binary Options, the poor management of capital is a gamble. Just like opening a large position in the Forex, futures contracts on equities or indices and play the stock market without any analysis of the company or the chart, not to mention such a popular playing the “bankrutach.” However, approaching the option seriously, they are an instrument like any other and not having anything to do with gambling.
In the next article we have specific strategies and ideas play on Binary Options.