One of the things that makes people happy is financial independence. Short term trading makes this promise, but it is a very tricky promise, and most people that jump in headfirst end up losing a lot of money very quickly. This is obviously something that you should try to avoid. That means dumping huge amounts of cash into something that you are unprepared for is something to stay away from. Knowing this, a lot of traders begin with just a little bit of cash, and then find out that they have lost that, too. It doesn’t matter what sum you start with, it’s how it all ends.
If you are new to trading, or unsure of what you are doing, start small. Binary options brokers allow you to do this more so than any other type of financial broker. Brokers do not necessarily want you to do this; there is a reason why they have larger bonus packages for bigger initial deposits and even better account types. However, for your own good, it is better to start small and save money, then put a ton of money into this and lose it all. Do what feels right if you were to lose it all. Free cash and awesome perks don’t mean much if you lose thousands of dollars to get those things and then cannot keep them. Start small and build on that, not on promises that are not certainties.
The other perk that comes with binaries is that you don’t need to trade a lot per session to make this worthwhile. Instead of risking thousands of dollars to make double digits figures on the hour, you can risk as little as $10 to $20 per trade and still make a decent amount of money every hour. Most binaries have a return of 78 to 80 percent for even something that is open as little as 15 minutes when your predictions are correct. Find a great pay rate to make this happen. Even if you trade $10 successfully twice every hour, you are still making $16 per hour. Now, do that eight hours per day, and you are up to $128 per day. Five days a week, 52 weeks per year equals over $33,000. And you can do all this safely with a minimum deposit. You just need to be safe and smart about how you proceed.
Work Your Way Up
You don’t have to make $10 trades your whole life. Let’s say you start with a deposit of $250. $10 trades are fine here, assuming you are being careful and making a steady profit. You won’t be right every time, but you should be right far more often than you are wrong on most days. But once you turn that $250 into more, you will want to consider changing your risk amount. Only increase your risk size equal to the tolerant pecentage. The more money you have in your account, the less helpful the $8 profit becomes. Experts agree that in most cases, you will want to risk 1 to 2 percent per trade here. So once you pass the $1,000 mark, you can start risking up to $20 and be safe. The bigger your account gets, the more you can safely risk and not worry.
The Big Difference
The difference between trading binaries and other assets is you can gain more off of less risk. In the stock market, you would need to risk $100 and have the stock you invest in go up by more than 8 percent in order to get this after fees. In binaries, you can earn the same amount off of a 0.01 percent change in your favor with only a $10 investment on your part. The math speaks for itself. You can risk far less to earn the same amount in a tiny fraction of the time. Or, you can do things the harder and slower way and earn far less per hour. The choice should be extremely easy to make.
It is true that you can realize just partial losses in the stock market and not in the binary market. But even a partial loss on a huge amount of cash is usually more than a total loss on a very small amount. And even when you do take a very small partial loss in the stock market, you are still responsible for the fees to end the trade. If this is a typical selling off of shares, it will probably cost around $15 for a small sized trade. Add that to the buy fees, and anything else that is tacked on, and suddenly a loss of a few dollars suddenly becomes much more. As you can see, even a small loss in the stock market can become a big one quite easily. These fees should always be calculated when trading.
The best way to avoid risk is to risk less. It’s common sense, but the less money you put out at any one time, the easier it is to control any loss of income. A trade of $10,000 can easily spiral out of control, but if you only put $100 into a single trade, even if you lose the whole $100, it is only 1 percent of the prior example. And the $80 you would profit from an 80 percent return on a $100 binary trade is equal to a stock moving 0.8 percent–which is actually a big day for most stocks. In other words, binaries can give you big results with little upfront risk on your part.