Tag Archives: Stock Market

Binary Options Investing for short term profits in greater scale

If you have your interest in trading in the stock market or investing stock options, then you might want to think about a possible alternative. This is called binary option trading. In this trading, you first select an asset, like a stock index, and individual stock, a commodity, or a currency pair.

Next step is to figure out a time frame, say for example, from one hour till the end of the trading day. The last step is to finalize on how the asset will move. If you feel that it will move up by the end of the time period, you will select a call option. Alternatively, if you think that the asset will move down at the end of the time period, you will pick a put option. Then you decide on how much you will bet or the investment you will make.

The interesting thing about binary trading in www.BinaryOptions.net is that you can start your trading with an exceptionally small amount and here, you always have the fixed amount of risk. You won’t see the risks fluctuating here. The maximum thing that can happen is that you might lose the entire amount that you have bet on an individual trade, but nothing more than that. This is quite different from some other types of options and commodities trading, where you trade on a margin, and may be subject to a margin call, if the investment goes against you.

You can usually expect a 70% return in binary options trading. So, within one hour, you are able to make 70% return on your investment. Online brokers do not charge any commission for trading binary options. So you won’t have to minus that from your returns.

Binary options trading seems like an easy task to estimate whether the asset will go higher or lower in one hour and you can expect a 70% return.

By looking at the recent trends, you can reach to forecasting. Though the trends can change anytime, but still, they are a reliable way to predict prices in the short term. You will know many other technical analysis strategies that can be used besides trends. It is recommended that you first practice on paper before risking real cash.

Before you start investing your money, check the system and verify its performance to make sure that you are putting your money in the right direction.

The Downfall of the Sub-Prime Market

Considering how prices dipped for housing in both 2007 and 2008, it was not difficult to see what was on the horizon. Smaller price tags enticed potential home owners into making their first purchases. However, the credit histories of these buyers weren’t always quite up to snuff, so to speak. Borrowers either had loads of credit card debt or simply did not have enough money to cover their monthly payments. Whatever the reason, the evolution of sub prime lenders had begun, and, in hindsight, one did not exactly not need a crystal ball to predict the results.

Sub Prime Lending

When new home buyers started to enter the market, many were not the ideal applicants for mortgage loans. Most did either not have good credit history, had previous bankruptcies, high credit card balances, or other blemishes on their credit records, making them less than ideal applicants for home loans. However, sub prime lenders offered home loans to these applicants despite these issues. In offering these loans to borrowers that could not acquire them elsewhere, lenders were able to charge much higher interest rates that borrowers were going to have to pay back.

What Happened?

There are several things that happened in the sub prime market in 2007. The year began with higher values for homes, leading people to want to sell their home quickly. Homeowners put their homes for sale on the market at higher prices, but with the slower economy, people were not buying homes as quickly as they previously were. Consumer confidence was progressively lowering, meaning that people were less than likely to purchase a home because they saw it as a financial risk.

Subsequently, more people wanted to buy homes, but they did not have the money to do so. This is where subprime lender enters the equation. These lenders jumped in and helped these high risk borrowers get into the housing market. But since these borrowers didn’t have the financial skills to manage the high and ever-changing interest rates, they often defaulted on their loans, causing the sub prime lenders to lose a lot of money.

The increased number of foreclosures on homes drove the housing market even further into the buyer’s market as sellers were unable to sell their homes for the actual values.

What Happens Next?

There’s no way to determine what will happen next in the unpredictable housing market. As the supply of available homes begins to diminish, homes will increase in price causing the buyers to be less likely to make risky loan arrangements – like those in the subprime and reverse mortgage market. It is very important, however, that the problems of the housing market aren’t exacerbated by policies made on the federal and state level. Nor should the government undermine the ability of moderate-income households to access mortgage credit and homeownership.

Small markets making big profits

Many of us feel that if you are working in a bigger market, there is a more chance of making large amount of money. The fact is that it’s not always true. If you are comparing it with McDonalds or Walmart, then it’s something different. Well, look at the size and extent of their business. They are seen in almost all local markets. They have expanded in almost all corners. In fact, few stores are in my area only. They are just nailing the local market.

Few years ago, I started to work in the real estate brokerage business in NYC. I started with one big commercial company. They told me on the first day that if I follow their program, I will have more chances to succeed, but if I applied my own way, I would fail.

Since, I didn’t have any experience, so I started doing as they said. They told me to pick something on which I am skilled. They offered me the options of leasing office space, retail space, industrial space or selling investment properties. I chose selling investment properties.

They connected me with two other people who had experiences in selling small to mid sized properties. The program was like you have to work for a 20 block market, take the initiative and know every property owner, provide them with free market info and work exclusively marketing properties for sale.

I was given an area where I had 350 five to six storey buildings. I was supposed to contact each owner by phone every six weeks or eight contacts by phone per day.

Within 9 months, it so happened that I was well aware of the market. After eighteen months, I had a busy schedule and started to dominate my market. Within 36 months, I was in a better situation to control the market I had. I had every lead and in most occasions, I was the listing broker for over 50% of properties for sale.

I realized the fact that those who didn’t follow the program failed fast. I also found out from others experience who had 500 to 600 buildings delivering poor performance. I was working with 350 buildings and I was doing well.

When new agents came in and started to focus on their own market, they started working together on properties outside their specialty. This resulted the sales to go up.

I was going through this feeling that we are working like farmers who worked in a small plot of land. When it was the time of harvest, the wind blew the seeds into the adjoining land and it started to grow there. The plan works in every market, every specialty.

I am now moved on to e-commerce and I am applying the same strategy. I work on a highly focused market, but my specialty is low. I have a very easy chance to expand my product line but I always want to focus on the same thing and sell it more. I am used to selling 4 products.

I have got lots of appreciation from my customers because they feel that I know my business and my market. And that my services offered to them are great.

I also blog and this is helping to bring in positive results. I find other bloggers kind of embracing me because of my specialty.

I am trying to focus on the market of decorative concrete floors. I have started to build up relationships with furniture bloggers, carpet bloggers, concrete countertop blogs, others who focus on hair salon design and others that blog about developing restaurant floor plans or provide cleaning resources. The list goes on.

Business doesn’t matter too much. It’s the individuals only who need to focus on the market and that is the most critical part. Large markets are profitable when there is a collection of individuals working small markets. Concentrate on the small market and that’s how you build up a big company.