There are various trading methods available for investors. Some of these include: trading stocks and equities, commodity trading, forex currency trading, trading securities and bonds, binary options trading etc. Not all trading methods offer immediate returns and most of the investments require significant turnaround time to generate profits. This article discusses 3 quick and effective trading methods for the impatient which are listed below,
Intra-day trading with Stocks
Day trading is one of the easiest methods to make money quickly, but is also risky at same time. Intra-day trading refers to purchasing and selling stocks within the same day and investors use leveraging options to enhance their profits. They try to make profit out of the small movements in prices of certain volatile stocks or Indices. It can be risky for people who don’t have enough knowledge on technical indicators since it will be difficult to predict the market trends without using them. You should choose stocks based on their volatility and liquidity. Volatile stocks will have better price movements and offer a better price range for day traders to operate which means increased profits. Also stocks that are more liquid are often day traded since they offer tighter spreads and are usually cheaper. Traders make use of fundamental and technical indicators to forecast price movement and also for deciding the right stocks to invest in. Candle-stick charts, bar charts, momentum, Patterns, support and resistance are some tools and techniques which are useful for day traders. Experienced traders make use of intraday candle-stick charts or Level II quotes to find out suitable entry points for their day trade. Also day traders should place their orders using stop-loss technique in order to limit the losses in their trade.
Forex Trading
Forex trading is also another quick and easy method to make money for the impatient traders. It involves exchanging one currency over another and is usually traded in currency pairs. The most popular and widely traded currency pairs are USD/JPY and USD/EUR. Forex is the most liquid and biggest financial market in the world with trading volumes extending beyond 3.2 trillion USD per day. Forex market is the only market which is open on 24/7 basis where currencies of different nations are traded. Forex trading can be done through either spot market or futures market. Spot market is where currencies are purchased or sold based on their current price, whereas futures market is based on contracts designed to sell a particular currency type at predetermined price and future date. Forex markets allow leveraging which helps traders to boost their financial gains by trading with less capital. Forex retail markets allow traders to leverage as much as 250:1 which can be highly profitable and extremely risky at the same time. Extreme liquidity and possibilities of high leverage causes the temptation for all traders to try their luck with forex trading.
Binary options trading
Binary options are one of the easiest and fastest trading methods for beginners without any market knowledge. Binary options are financial instruments which allow investors to make profits by capitalizing on the market fluctuations. The trader has to speculate the price movement of an underlying asset which could be anything like stocks, currency pairs, commodities or market Indices. As the name implies binary options can result in only two possible outcomes, either the trader wins the trade by correctly speculating the price movement of an underlying asset and earns up to 80% profit or his prediction goes wrong and he loses the trade. Following certain simple strategies with binary options trading can significantly increase the profitability of traders. Traders should carefully follow the market trends by watching the market news regularly and using various technical indicators. Unlike traditional stocks or commodity trading where the traders have to wait for years to gain their returns, trades performed using binary options are very quick and usually last only for 5-10 minutes. Hence binary options are an ideal choice for impatient investors who are looking for fast and simple methods to make money.
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