Financial markets are gaining in popularity over the years. Moreover, trade has become a common practice abroad, and every third American is somehow familiar with investments and trading. Personally, I began my journey in the world of finance with Forex and CFD, which I have no regrets about and am ready to share my experience with you. So let's get started.
Earnings in the financial markets
Various Exchange and financial markets, as a result, and you can get income in completely different ways. Before we move on to forex, we will consider each of the markets in general terms, in particular, how you can make money on them. This is necessary in order to understand why Internet trading, which I chose for myself, will be so beneficial for any trader. Informative article, how did the stock exchangeand exchange robot, be sure to read.
The most famous part of the financial world is stock marketWhere buy and sell stocks. The purpose of these securities to provide the owner of the company in the property. As a result, the more you share some of the company, the greater proportion of it you own.
A large proportion pays big dividends, which represent the company's profit distribution between the owners of the shares. Unfortunately, the dividends are paid is not always and not in full, as the organization is required to have capital for investment or unplanned expenses.
As a result, the main way to generate income is to buy shares with their subsequent sale at a higher price. In practice, this is as follows. Below is a price chart for Facebook shares from the Nasdaq American Stock Exchange.
As you can see, prices are rising every year, allowing us to buy shares and wait for profits over time.
Purchase and sale of shares of a number of disadvantages:
• needs a large initial capital for trading;
• complicated procedure of registration and opening a brokerage account;
• large commissions on securities transactions;
• complicated scheme for making transactions on the exchange.
In addition to the stock market, there forward marketWhich is made of futures sales. This instrument is a contract of sale of goods or securities at a specified price. Its main purpose - it is insurance against sharp price fluctuations during the period of financial transactions.
As an example, consider the futures on the euro with the US Commodity Exchange in Chicago CME.
As you can see, the profit from futures achieved in a similar way that creates a lot of drawbacks:
• again require large capital for trading;
• Opening a brokerage account is a lot of problems, as well as in shares;
• Again great commission;
• transactions too complicated.
We turn to the more modern markets and instruments. The next step Forex marketWho managed to win a significant number of traders with the ability to trade with minimal investment. On the Forex market made buying and selling of one currency in exchange for another. As a result, all of the tools presented in currency pairs, for example, Eurodollar (EURUSD), the Japanese yen and the US dollar (USDJPY), and others.
In addition, the Forex market is the so-called spot market, which made sale of precious metals such as gold (XAUUSD), silver (XAGUSD) or platinum.
Profit achieved at the expense of buying a currency with its subsequent resale at a higher price. Leverage is used to increase the income. For example, using the shoulder to 1 500 100 with a deposit of $, you are actually making a transaction in the amount of $ 50000.
For example, take the chart of gold (XAUUSD).
By analogy with the stock and futures trading profit would be achieved due to the difference in price.
The Forex market is less significant disadvantages in comparison with the previous two markets:
• a spread;
• the need for a strong price fluctuations to earn;
• Difficulty with miscalculation of risk and stop orders.
Finally, we go to Binary Options. Option - a contract that is within a specific period of time gives the right to buy or sell an asset at a certain price. There are options on currency, stock, precious metals and commodities. Initially, investors use options as insurance against adverse outcome of the transaction on the shares or currency, but now this tool is often used by itself.
Options earned its popularity by the fact that profits on them does not depend on large market movements. In fact, buying, for example, touch-raising options, you get a bonus of 70-90% of the value of the option, even if the price will go in your favor by only 1 point.
In other markets 1 point would not even have paid for the spread or commission on the transaction, not to bring a huge profit.
Consider the graph Eurodollar (EURUSD).
As you can see, the price has not changed much, but more headway. By purchasing an option, we would still have earned a well, and the usual transaction currency would have been at a loss.
The conclusion is as follows:
• stocks and futures require too large investments and have many shortcomings in terms of complicated procedure of opening deals and huge commissions;
• Forex currency market is more affordable, but, unfortunately, spreads and is highly dependent on the price changes and the availability of the trend;
• binary options - the perfect choice for the trader, because there is no commissions and spreads, and you can earn, even if the price went just 1 point.
Exchange of money on the Internet
Another aspect of earning on the stock exchange is the ability to earn income from home. Perhaps this is one of the key benefits of this work. In fact, you can go on vacation to the sea and right on the beach with a laptop to make a lot of money. This option is a dream for many people, but unfortunately they are afraid to start.
Among all the possible ways to make money on the Internet, trading on the exchange is one of the most profitable. The amount of earnings is simply not limited. You can start opening deals for only $ 1, then for $ 10, for $ 1000 and so on. In this case, the percentage of profit depends only on your skill, which must be constantly developed.
Trading in options on the Internet was made possible immediately. Many decades ago, the transaction carried out by telephone or telegraph, and before that to buy the securities could only exchange building. In the meantime, the exchange was not a building transaction carried out directly on the many famous street - Wall Street in New York.
In order to become part of the new history and start earning right on the Internet, you need first of all to choose a reliable broker. This step is very important, since much depends on the selected company, which will offer you a variety of bonuses and Additional servicesIn particular, training and various competitions.
Initially, you definitely need a mentor, the easiest way to get it from a broker. An organization can choose, guided by the rating and reputation among traders that will be a key criterion. Among other aspects it is worth considering the following:
• The organization that regulates brokerage activity. As a rule, it can be CySEC or FCA. These regulatory authorities have earned their authority and protect the interests of traders for many years.
• Minimum deposit is also an important selection criterion. Not everyone has enough money to start trading. Some brokers provide an opportunity to get started with only $ 250, others only the minimum amount of $ 10 or non-existent.
• The size of premiums on options. In most cases, the remuneration on options is in the range of up to 80 90% of the cost, sometimes there are extraordinary or even 95 110%. However, be careful with large bonuses, as you can often stumble on deception. It is better to once again double-check the company and not to trade a large amount.
• The presence of bonuses, and quality education. Typically, many brokers, in particular 24option , try to stand out in this very aspect, and it plays into the hands of a novice binary options trader. You just need training, and deposit bonuses will ease the monetary burden at first.
The first time it is better to practice on a virtual demo account, rather than risking real money. This approach will give you confidence in the future transaction, as you will be able to test all of your trading ideas. It is also a pilot or skydiver make training flights or jumps, that you will agree, it is essential to the present case.
I also advise you, as an experienced trader binary options, keep a diary of transactions and personal statistics. This will give you a huge competitive advantage over other traders. You can keep track of when and at what time, earn more, and when they lose. What are the options, for example, on the currency pairs you can not trade well.
With the help of statistics, revealing their weaknesses, you will be able to improve their trade tenfold. For example, many traders trade exception very helpful during the Asian trading session (night-time Moscow time). Other trade improved markedly after the exclusion of stock options of cross-currency pairs, or gold, because they have very sharp and unpredictable fluctuations.
To sum up a little of all the above:
• There is a completely different financial markets with its own characteristics that you need to know before you start. The stock and futures markets, where trading stocks and futures, too demanding for the initial capital, have large commissions and complicated process transactions, therefore, not suitable for beginners. Forex Exchange market is easier to use, but it depends on the spreads and strong price movements. The best choice for a beginner - this binary options.
• Earnings on the stock exchange on the Internet has many advantages, for example, you can make huge profits by trading options on the sea beach or elsewhere. Binary options provide unlimited opportunities to earn money without any limits.
• At the initial stage should pay attention to the choice of broker, assessing it according to several criteria. Beginners are very important first steps to choose a worthy mentor. A great addition would be different deposit bonuses, reduce excessively heavy load when starting investments.