If you have ever traded the stock market, you are aware that it’s truly hard to make a consistent profit, and there is a perfectly good reason for this.
Truly, as a way to generate a profit trading stocks not only you want to be sure the cost will proceed around in a specific direction, but also, you have to be right regarding the size of such movement, because if you go long on a stock which is trading in $5 and it goes up to $5.05 you won’t even have enough to be responsible for commissions if you’re olymp trade trading with $500 accounts.
One of the issues is that in order to create a profit not just you must be about where the purchase price is going, but also about just how far is it going, and also the fact of the matter is that determining the direction of the cost within a specific time frame is relatively simple, but assessing accurately how much is it going to proceed is the hardest portion of this equation.
Add the fact that each time you enter and exit a trade you need to pay a commission of approximately $1 to even $15 per commerce, and you are already $14-$30 down on a commerce the minute you set it.
If you are trading using $500, then you also make a fantastic trade (meaning you successfully predicted the price movement as well as its magnitude) you might have gotten lucky and snapped a 10% gain in the price of the stock in just a couple of days, which are really wonderful commerce.
However, it’s unlikely that you’ll consistently snap 10% gains on a particular stock, because just what will often happen -even if you’re very accurate predicting the marketplace movements- is you may make a fantastic share of mistakes, as well as when you are right, the stock will not always move as far as you would have expected in the leadership you had intended.
Accordingly, inorder improve your chances to be profitable and growing your accounts, the ideal approach to trade the stock exchange is through binary options. Why?
But because binary-options permit one to trade in smaller sizes without having to be concerned about commissions, you can achieve returns around 70%-80% on each trade, and also in order to do so that you merely have to be about the direction of the price, whatever the size of the movement.
Truly, whenever you exchange binary options (also called “nothing or all options”) the payout for each call or put option is fixed, meaning that unlike any traditional options, your profit will always be 70 percent-80 of the invested amount irrespective of how many points in the money you’re, provided that you are in the money even if it is by $0.001.
On the flip side, binary-options offer the advantage that they are able to be traded hourly, meaning that you can buy contracts that die within 60 minutes thus letting you realize 70%-80% profits fast (some thing simply not possible to achieve stock trading in the conventional fashion).