Increasing Capital Returns

All traders are in the stock market to make money. The gains made from trading stocks in the stock market are referred to as capital gains. The amount of money a trader makes from the stock market depends on his ability to choose potentially profitable stocks and knowing exactly how to increase/ maximize capital returns.

There are many forms of financial instruments and types of asset to trade in, all of which offer different exposures to risk and volatility. It is important that traders should determine their own risk appetite and plan their trading activities accordingly as the higher the risk, the higher the reward. For traders that have a larger risk appetite, binary options have emerged as a viable financial instrument within the world of high return investments and are thus an ideal way to increase your capital returns, whatever asset you decide to trade. The trading principle behind binary options means that if a trade is successful, significant returns are possible in addition to your initial trade capital.

In terms of assets, stock options are a popular way of maximizing capital returns because they provide higher returns when compared to normal stock trades. Traders who are able to accurately choose stocks that will appreciate, can make returns that are 10 to 15 times more than if they were just trading the stock. Successful stock option trading requires in-depth knowledge of choosing the right stock and judging its direction over a period of time. Traders using stock options, therefore, need to be able to confidently and successfully use technical analysis tools as they are key to making decisions that will allow them to increase their capital returns.

Trading binary options is an excellent decision as the profit potential per trade is higher than comparable instruments which would require excessive leverage in order to gain a 70-80% return per trade. This makes the instrument ideal for a wide range of incomes and portfolio sizes. A good binary options broker such as Banc De Binary offers traders multiple time-frames and asset classes and with the right amount of discipline and dedication considerable returns are possible.

If you want to increase your capital returns, as well as reduce the risk of losing invested capital, it is important that you learn how to understand and apply appropriate strategies and the best time to apply them in the course of your trade. It is also important to manage your investment properly. It is one thing to make huge returns, but another to be able to manage the returns from it effectively, hence money management is key.

As we have seen, with a range of assets and tools available, binary options have proved to be the ideal instrument for traders to increase their capital returns. All traders should in addition, ensure they enlist the services of a regulated broker such as Banc De Binary to assist with all aspects of their chosen trading strategy.