Dear Investors and Traders,
I welcome you to the exciting world of online trading!
If you are reading this, you must be ready to embark on the great journey of binary option trading. You are keen to invest in a financial education and you are looking to generate money through the trading markets.
Before you go any further on your journey, let me share a little of the wisdom of Benjamin Graham, one of the most influential economists and investors. Graham urges us to create a fundamental distinction between investment and speculation. He argues that “an operation of investment is one which, based on analysis, offers safety and adequate gain, and anything that does not meet this is speculation.”
What does he mean? Graham’s point is that to be a successful when trading, we need to make informed choices based on proper analysis. Don’t just guess and speculate on the direction of an asset. Study it, research it, understand it.
I encourage all my clients, like I encourage you now, to approach binary options as investors not speculators. You’ll enjoy higher returns when you actively engage in the markets and understand the rules of trading.
Perhaps the highlight of my day at Banc De Binary is working with young professionals and entrepreneurs because these guys love to be smart when it comes to investing. They want to learn the tricks of the trade even though they are still at the age where savings are less important than wages. They are happy to take risks and are not deterred by setbacks.
While there is a great advantage for the young capitalist in beginning their education and financial experience early, I would argue that there is no such thing as starting too late. I urge those who are novices in the financial markets, whether young or old, not to waste your effort and money trying to beat the market. Instead, study and respect the markets. Be open to learning new strategies. And most importantly, make sure that you have a broker on your side who can provide tailored educational materials.
Once you understand the general principles of trading, you need to consider each specific trade like an investor, not a speculator. An investor approaches the analysis of assets with a business mindset and makes intellectual decisions. Will the value go up or down with respect to the current price? Is the asset currently undervalued or overvalued? The beauty of binary option trading is that you only have to determine the direction of the asset. Trading is far simpler than in forex or traditional stock trading where the exact price points matter.
Analysis of political events, stocks, and charts, will help you to decide the market direction of an asset. Make sure you understand the asset’s worth, just as you would know the value of the goods, product or service you produce, buy, or trade. Although in online trading, you are often driving your business with your broker’s recommendations, it is still you who ultimately oversees and manages your investments. So it is better to apply care and long-term money management strategies.
When you make trade decisions based on calculation not optimism, you should have confidence that your judgement is solid. And confidence in the financial markets is the single largest virtue after adequate knowledge.
After all, a strong market trend is not synonymous with security. Binary options, like all investments, involve a degree of risk, and even the best of us do not get it right 100% of the time. However, with knowledge and confidence, you will not be hurt by a loss. When your data and reasoning are correct, you can trade with confidence in your decisions and with the belief that next time you could be in-the-money again. You are investor, not a speculator.
My friends, achieving satisfactory investment results is easier than people think, but should never be taken for granted.
Invest well!
Ben Franz
Ben Franz is one of Banc De Binary’s Senior Account Executives. For further trading tips and signals, follow @bdb_benfranz on twitter, or email him directly at [email protected]
