Trading binary options can seem deceptively simple, but leaning too far into that notion can blind people to some of the risks that often accompany this type of trading.
If you’re interested in taking the binary options path, it’s critically important to understand exactly what you’re getting into and setting appropriate expectations.
Will trading binary options enable you to buy a villa in the South of France next year? Probably not. Will they allow you to quit your full-time job and finally start on that novel you’ve always wanted to write? Don’t count on it.
The good news is this type of trading can serve as a great supplement to your other trading strategies and personal financial initiatives.
Here, we’ll take a look at what binary options trading is all about and you can decide whether it’s right for you.
I personally do not trade options. However, learning options trading basics can help you decide if you want to try options trading and to succeed if you do.
I want to start with options trading basics so you don’t get confused. I know that the jargon and strategies required for trading can leave some people intimidated, so I’m going to break it down for you.
Options trading is a little-understood sector of trading. Some traders are quick to dismiss it as a waste of money, whereas others find it too risky to pursue. However, as you’ll learn in this post, when chosen at the right time, options trading can allow you peace of mind and potentially unlimited profits.
I’m going to cover some of the fundamental key terms and strategies of options trading basics so you can follow along.
Companies aren’t just whole entities. They’re made up of tiny parts called shares. Each share represents a certain percentage of the company, and shareholders own those shares.
When you invest in the stock market, you buy shares — essentially pieces of paper that entitle you to a portion of the company’s profits if it makes money. Whether you make or lose money depends on the stock price.
For instance, if a company’s stock is trading at $14 per share and you buy 1,000 shares, you’ve invested $14,000 in the company. Should the stock shoot up to $18, you’ll make money. If it sinks to $12, you lose money.
Investors buy shares of stocks because they want to turn a profit. If they’re like me, they might invest in small companies for hours or even minutes. Others hold on to more expensive stock for months or years.
Regardless, everyone who invests in the stock market trades shares. But what is a shareholder and how does the process work?
Forex stands for foreign exchange, but I’m not talking about students here. Instead, I want to help you learn how to take advantage of forex trading just like you would when trading stocks.
In fact, forex works a lot like the stock market. The only difference on the surface is that you’re trading currencies instead of shares.
Another difference lies in volume. On most days, trading volume exceeds $5 trillion. It’s a highly liquid investment pool, which appeals to many investors.
But what is forex trading? And how can you take advantage of opportunities in the market?
You might know that I’m partial to penny stocks, but I’ve also researched many other types of investment vehicles. Each has its own unique set of rules, expectations, and risk levels, so I urge you to learn about them all.
Today, I’ll cover what you need to know about forex trading.
What is a financial advisor? And why should you turn to one for help?
You’ve heard that old saying: “A lawyer who represents himself has a fool for a client.” The same goes for making financial decisions.
If you’re not educated in areas like investing and money management, you could make a serious mistake that costs you all you’ve saved. Turning to a financial advisor can help you make smarter choices with your money.
After all, you want your cash to work for you — not against you. Here is what I would tell someone if I were counseling him or her face-to-face.
What an absolutely crazy few weeks it’s been as the slow summer trading I was praying for just doesn’t seem to be coming true as there are Supernovas galore nearly every single day lately…as I write this I just made roughly $2,000 on today’s big spiker, Black Box Corp (BBOX) and will gave a detailed video lesson this weekend for subscribers of my newsletters here. Continue reading
Stocks are nothing more than pieces of paper — whether physical or virtual. They represent real money, but on their face, they’re just contracts.
You probably know that I don’t like risk. When I play the stock market, I want the greatest rewards at the lowest risk. I suggest that you take the same position.
When it comes to stock futures, my principles remain the same. But what are stock futures? And how can you trade them wisely?
What Are Stock Futures?
Stock futures are different from traditional stocks in that they take place in the — you guessed it! — future. Trading stock futures means agreeing on a price for a stock, whether to buy or sell, and putting an expiration date on it.
With literally thousands of stocks available, where can you find the best trade ideas? This is a common question for day traders, whether they are brand new or long established veterans…and my top trading challenge students and I know EXACTLY how to find them.
Become a Professional Trader?
So, You just got done binge watching movies like The Big Short or Wall Street (the original of course), cruised through a few hours of video on youtube learning about Institutional Trading and now you have your eyes set on becoming a rich Wall Street professional trader. If you want to become a Wall Street titan, the next Gordon Gekko, I might not be able help you. You need to understand there is a BIG difference between a retail trader (like me, on a beach) and an Institutional Trader (suit and tie Wall Street type) However, if you want to learn what it takes to become an Institutional Trader trader versus a penny stock trader like me, keep reading and start drinking a lot of coffee, you’re going to need it!
This is definitely not your traditional guide on how to become a Wall Street trader. Basically, I’m going to outline the steps that one might take to go on the traditional route…then I am going to offer the non-traditional route I’ve taken. Then, I’ll let you make the decision! (hint.. choose the one that offers more freedom)
Download a PDF version of this post as PDF.
Trade Penny Stocks During The Summer
It’s pretty funny to admit, but I didn’t even realize I haven’t had a trading loss in over a month as we head into Summer 2018 and I’ve had some truly awesome picks like buying SNES at .44 before it hit nearly $2/share the next day! The best time to trade penny stocks during the summer is early on.
I’ve been studying the stock market nearly 20 years now and I’ve also been teaching for over 10 years not too!
And the funny thing is I used to take summers off since there can be some slower trading, but the last few years have been insane with plays galore! And the even better news is that because the best plays coming about less frequently, mixed in along with the lack of trading volume, summer trading can be VERY profitable for a short-period of time if you know the key indicators that matter vs. those that do not.
Download a PDF version of this post as PDF.
And so over the past few years I’ve successfully adapted to summer trading and I want you to adapt too so I’m giving a free webinar HERE on June 21st and if I were you I would register HERE for it ASAP as I think we’re limiting it to just 1,000 people…
Here’s a video I made today explaining a little bit more on this subject: Continue reading