Binary Options Stock Trading. If you are one of stock market predators you most probably know how many stories people invent talking about this profession. Even nowadays only minority understands what stock market trading is about. Hopefully this article will help you to figure out the way this business works and get a clear image of stock trader’s role in the market.
Who is Binary Options Stock Trader?
Stock Trader is a person who sells/buys securities on the market depending on their current price. This mechanism works in the following way:
You are buying companies’ securities hoping that pretty soon their price will go up. If your prediction was right your next step is selling the securities to other traders and getting your profit. Sounds quite simple, right?
Just for you to know that securities are not limited only to stocks, they also include bonds and other financial instruments.
Let’s say that one Apple stock will cost you $1000, then if you buy 10 stocks you will have to pay $19 000. After a while you may decide to sell some stocks that luckily became $200 more expensive. That’s why if you decide to sell all stocks you have you will get $3 800 of pure profit. And now let’s imagine that instead of 10 stocks you bought 100… This is the way trader makes money.
Another way of making money at the stock market involves taking stocks from companies as a loan and selling them at high price and buying back when their price falls.
For instance, you can sell 10 Apple stocks for $1900 per stock, when the price falls you buy same amount of stock for $1800 per stock. Then you take your profit (about $1000) and give Apple its stocks back.
No one can tell you the future that’s why be ready to win and lose at the market.
The only thing to remember is to analyze the market and try your best in making predictions, because at the end of the day your profit is the difference between your wins and losses.
There are 2 types of Binary Options Stock Trading techniques for you to master: fundamental and technical one.
Fundamental methods makes you study the company on its own including its financial potential and possible prospects in the future.
Using technical method you concentrate mainly on the consistent patterns of price movements at the market.
Stock trader’s craft is a job that makes you strive for profit but at the same time it’s highly rewarding.
At the same time you should remember that market has its own rules, that’s why if you know the rules you can easily predict price movement.
What a stuff of un-ambiguity and preserveness of precious familiarity concerning unpredicted emotions.