As everybody knows: I read a lot and I am interested in a lot of different topics. One of them being financial trading and assets. To me it is very important to let my money work for you. I have been way too lazy in the past and did lose a lot of money (in terms of not making more out of it). One day in 2012 I decided that I need to put an end to this. And I started to read a lot about financial markets, products, investment strategies and so on. The problem is that it is all pretty boring at the moment with interest rates this low. Only stocks seem lucrative to me as long term investments.
But only in the long run. Buying stocks means low profits as well with an OK risk. This combination makes them still one of the best investments today because everything else is even worse. With cash you will lose money because of inflation. And with bonds the yield is so low that it may even be negative. That means you pay interest that you can lend (a state or large corporation) your money. WTF? That means that these bonds are supposed to be more secure than plain cash? Crazy times.
Anyways, what I have been doing a lot in the last two years was trading with binary options. These are very, very simple leveraged trading tools with a high risk high payout structure. Actually you are just betting on a certain asset like the Dow or EUR/USD to either go up or down, then you buy a put or call option and wait between 60 seconds and a few minutes, hours or days. Its up to you to choose.
Now, it looks like binary options are somewhat a gamble. And yes, you can really gamble with them. You can click on put or call like a monkey and chances are 50/50 that you will win or lose. But then you should go to a casino and not trading with assets. In a casino you can at least win a big jackpot and thats not possible with binary options.
What I am doing is the following. I am analyzing assets without too much fluctuation that are somewhat reliable and consistent. Then I am looking for trends that must be pretty clear. When I found a trend Im just riding it relentlessly. That means with several options with expiration times of just a few minutes. So when I spot a long term trend that goes on for 4 hours and Im trading with 5 minute options I can make 48 trades where I will win between 30 and 40. Thats enough to get some serious profits. This sounds very simple but its not. What I need to do properly is spotting those trends and also recognize when there is a shift in trends.
Before you can do that too you need to make a lot of research. It took me over a year to finally trade profitably. These are the costs of it. But then you will have a system that is working reliably. There are a couple of resources for binary options newbies you should check out. For English and Ukranian readers I can recommend BinaryTradors. Thats a great site about the basics. And also basic but for Hungarian visitors is this one: binarisopciok.org. But then, the party begins: you need to read a lot about technical analysis and how to read charts properly. This is your biggest task and that is where your profit is actually coming from.