Learn How to Make Successful Trades in Binary Options
Learn How to Make Successful Trades in Binary OptionsJune 2, 2012
A friend of mine who was a legal consultant for one of the more prestigious banking institutions called me and asked me if I could design an investment portfolio tailor-made to his needs. Now, usually this would not be a big deal, however this particular friend has helped me out many times in the past with the kind of information that you just can’t get anywhere else. Nothing illegal mind you, this guy knows how to say things without saying them if you know what I mean… So I stepped up and asked him a few initial questions concerning his financial situation and how much he would be ready to invest, for how long, and what level of risk he is interested in.
I convinced him to fly over because I realized this is not the usual trading portfolio. I have known this person for about 10 years, he has always been extremely careful about how conducts himself, but after a few drinks and a late dinner I understood he had over $1,000,000 in open positions with 5 active broker accounts, one of which was handled through the Credit Swiss Wealth Management Department. I told him I wanted to manage that money and that I could increase his profits by approximately 2.7% – which was a conservative estimate.
Despite the significant amount of alcohol this person consumed, he still managed to pull out a pen and paper, and ask me to tell me what stocks I plan to invest in, and what is my investment strategy. I decided to be completely transparent and tell him everything.
First of all I surveyed the current markets and set a few facts on the table:
1. The current crisis in the Eurozone does not seem to be getting any better, this means the EUR will be devalued and the USD will make gains in the short foreseeable future.
2. Investing in commodities, with specific emphasis on Comex Gold is a recommended long term investment strategy.
3. Looking at emerging markets, I showed him how I was willing to take a little more risk than Credit Swiss and invest in stock like PCL on the Set (Thai Equity Index). I took out all my charts and analysis tools which included candlestick analysis, Bollinger Bands, and historical data analysis I crunch into my special little SPSS program.
4. I took out my top ten stock for long holds which included AAPL, XOM, NESN and GOOG among others.
5. Since binary options are a relatively simple form of financial betting, I also advised to invest in binaries as part of the investment portfolio, but kept it down to 15% of the total investment scheme due to the high risk involved.
Altogether I spent 40 minutes advising about how to make gains using some of my previously proven trading techniques. The interesting thing is that usually people talk about getting rich or making millions trading options online, in this case it was very simple to see that this person was already extremely rich and was interested in making more money for himself. He just wanted to see how the pros do it, and I was there to explain how how its done. Obviously he was interested in the high-risk elements, so we ended up having a tutorial session about binary options and how day trading has become a part of growing trend. We even registered a demo account at one of the binary sites and I gradually saw that he understood how there was money to be made here.
Technically speaking, there is no way to bullet proof any stock portfolio if you want to make serious cash investing online. You have to take some kind of risk and manage it, this is particularly true with digital options. Trading strategically will definitely guide you to a successful path, however your ability to be a technical trader and understanding the groups of technical indicators such as the cup and handle formation and Bollinger bands along with your ability to collect and assess financial news properly will ultimately lead you to be a successful trader and very soon you will need to find out ways to legally hold on to your money and eventually you will also open companies in offshore locations for tax reasons.
If you feel you are ready to start trading binary options and would like to make your initial purchase at a recommended broker, simply click here.
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