Making money trading stocks is harder these days given the continuous intervention of governments and central banks. These deep markets and government policy institutions have great sway over the movements of the equities market today. As a result less well capitalized investors seek other investments to make their fortunes.
Options Trading as a Way to Make Money Trading Stocks
Options trading is the investment du jour for traders looking to get high returns on investment from small investments. The key to making big money trading options is by controlling large quantities of stock without having to put up all of the money needed to actually own those shares. One drawback of the options trading market is the vast number of firms holding contracts which ultimately become worthless.
Investors new to options trading quickly find that if they don't invest in blocks large enough, gains get swallowed up by transaction costs. Thus day traders of options typically need to put at risk at least a minimum of a thousand dollars at a time to make it worthwhile. Day trading robot programs and high frequency trading servers have made profiteering in options trading considerably more difficult than in prior years.
How to Trade Options with Minimal Capital
Trading binary options offers people with little money to trade with the big boys, and likewise forex trading allows enough leverage to make currency trading worthwhile. While both of these markets require very little money to start, the forex market truly should be left to the professionals, given its complexity and the extremely high leverage involved (more info on forex margin accounts).
Trading Binary Options
People familiar with European options trading will be familiar with many of the characteristics of a binary option. A popular difference between European options and binary options is there are no fees or commissions trading binary options. Because yields on binaries are in the range of 60% and up even a small $200 trade can earn over $100 a day.
Learn More about Making Money Stock Trading:
Day Trading Options For the Highest Return Investments
Forex Binary Options Trading
Trading Strategy Binary Options - Scenario for a Successful Binary Options Strategy
Forex Margin Examples