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Why trading binary options

The first question new traders should ask themselves is what type of trading is the best fit for new traders with little or no financial background. From our experience, we can conclude that the answer is a very straightforward answer, binary options. So why trading binary options?! Binary options are a simplified way of trading with extremely high profit rates. If you are serious about trading, binary options is the most promising trading method that can enable you to create the financial future you wish for.

In binary options the traders know in advance (predefined payout) the profits they get when they win and the risk they take if they miss. This is why it is called binary options because there are only two possible outcomes to the trade. In order to become an expert trader, it is crucial you learn and improve your trading skills. You can use the different articles and tutorials from the education section to get started and learn about tools, strategies, and the different binary options trading methods that will enable you to take educated decisions and bring you closer to fulfill your financial potential.

Everybody knows that there is a great potential of making a lot of money in trading. It is important to understand that trading in the stock exchange, for example, can be very confusing and complicated and can cause losses if you are not an expert. Binary options is a simplified form of trading and is specifically adjusted to people who want to trade but are still learning and improving their trading skills.

Look at this graph: (notice that the graph progresses downwards)
Facebook chart (start) – why trading binary options

This is the chart of facebook’s stock for June 1st 2012 (taken from Yahoo! finance). As you can see the general trend is tending downwards.
Facebook chart (trend) – why trading binary options

In standard trading you need to predict the value of the stock to make sure you make a profitable transaction after you cut the various fees. If we want to make a quick profit in the next 30 minutes, in standard trading we need to predict the value of the stock at 2:15 PM. Can you predict the value of the stock?! (Write down what you think the facebook stock rate will be at 2:15PM)

When trading binary options you are only required to specify if the stock goes up or down. So?! Will the stock go up or down?! (Write down your prediction)

Now let’s see what happens in this case if you traded the regular way or in binary options with one of the recommended binary options brokers.
Facebook chart (result) – why trading binary options

In regular trading we look at the value, so the facebook stock’s value was 27.4 at 2:15. Did you predict it? If you did, congratulations, you could have won 1% return on your investment (1$ for every 100$ invested).

In binary options trading we look at the trend (up or down). The stock continued to go downwards. Did you predict it? If you predicted it like most people do, you could have won 80+% return on your investment (80$+ for every 100$ invested).

Trading binary options is a good starting point not just because of the simplicity in trading but also because you can start with much smaller investments. Usually investment banks require an initial investment of tens of thousands of dollars in order to qualify and manage your portfolio with them.

It is obvious that the more you invest the better conditions you get and the more you earn when you have a successful trading. If you put a coin in a savings account you will only get fragments of a coin after a year. If you put a lot of coins you will get better interest rate and at the end of the year you will have many coins in addition to the coins you invested. All investments accounts work this way including accounts you manage with binary options brokers.

In binary options the initial investment doesn’t have to be tens of thousands of dollars. You can invest more money over time when you gain more experience and with every deposit your financial potential increases as you have more money to trade with.

We suggest that your initial investment will be between 400$ to 5000$ (depending on the broker and your available funds) and to progress from there with time and with gained experience. Practice and improving your skills take time and therefore you need to take into consideration that in the beginning you trade to improve your skills and therefore there is a chance you lose some of the money when you get your practice but this is only temporary until you get your practice and learn how to better trade with binary options.

Improving the profitability of your binary options investment account takes time but this is definitely a realistic way to start and gain experience and profits with the financial world.

After you read why trading binary options article, you can proceed and read our binary options tutorial to better understand binary options or check our guide on how to choose binary options brokers.

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