What assets are perfect for a newcomer?
There is a lot of material about binary options on the internet including articles for the novices who are a little unconfident about themselves as traders and don’t know what to start with.
But are these articles really useful?
Most of them are quite abstract and too general, and elusive information can’t really help anyone. It just scrambles your brains even more as the authors mostly just plow the sand. Why I am sure about that? Because I also was a novice. And also because I regularly receive a bunch of letters where people ask me for some help – that proves that a lot of articles placed on the internet just make no sense.
I decided to write this brief but concrete article because I remember myself at the very beginning of my way at times when I didn’t know what to do and had no one to ask for help. That’s why I want to share my experience with you and give you a hand so you do not make bitter mistakes.
Linda Ainsworth asks in her letter:
“Seems like binary trading fits the newcomers perfectly. But why is it so? What are the main criteria and what are the factors which make b.o. trading so easy and acceptable for everyone? What exact assets can I trade as just gaining my experience with b.o.?”
Well now, let’s shed some light and help Linda and others to feel comfortable in binary trading.
Novice traders should pay attention to the least liquid assets because these instruments are easiest to learn the trade with. The first affects the relative fluency of price movements and less noise, which simplifies the process of candlestick patterns recognition and gives more time to prepare for the transaction. Under described criteria perfectly fits commodity market and especially tools like oil, gold, platinum and others, depending on the conditions of your broker.
Another great advantage of trading using derivatives – it’s the access to the market of shares and indices, one of the most popular types of traditional investments. If you always wanted to join the very real stockbrokers then binary options is one of the simplest ways. Whereas in the transaction on the stock exchange you have to buy the entire share, in case of binary options you just buy a contract with certain conditions of implementation. This moment simplifies the life of the beginning analyst greatly because in the forecasting of binary options serious errors are often made.
Also, you have the opportunity to trade a wide range of indices such as: Dow Jones, Nasdaq, S & P 500, DAX 30, Nikkei. During the analysis of the indices you should take into account the weight of each instrument included in the basket, as the index price can be affected by every member company. Also, the capitalization of the index may exceed the GDP marks of some countries, therefore, the general economic situation in the country is an important factor.
Because of its complicated predictability, trading currency pairs requires a particularly cautious approach. It is believed that the most popular pair to trade is EUR/USD and a little less popular – GBP/USD. However, their main advantage and at the same time the disadvantage is that these pairs have relatively high liquidity and a higher number of different views and projections.
In general, trading binary options is definitely a godsend for all short-term traders, as it allows them to receive up to 80% profit per trade. And the fact that the profitability of certain types of binary options can be up to 500% makes trading binary options an extremely profitable kind of investment.
Binary options market can safely be called the Mecca of professional traders and the joy of those who are just starting their “Silk Road”. While gradually gaining popularity, binary options offer the most modern and logical trading environment. Low entry threshold and simplicity of analysis allows the beginners to accustom quickly and potentially big profits and access to the most popular stock exchange attracts the experienced traders either. Finally, a flexible risk management allows you to develop a reliable trading system quickly, exactly corresponding to your trading style.
Beginners should start their trade with the most predictable assets – the commodity market and in particular tools such as oil, gold, platinum and other, depending on the terms of your broker.
That’s all for now. Got any questions? Just ask the expert!