Insight from a veteran market trader on why trading in the overal Dow Jones Industrial Average with binary options is better than trading directly.
Top 10 Reasons to Trade the DJIA Index
1) Binary options offer the investor far more than trading on the regular DJIA. One thing which they offer is that you don’t have to rely on the Dow Jones to be doing well to generate capital gains.
In regular trading, investors are at the mercy of the market because stocks have to be going up to earn a real return on investment. If people start pulling their money out of stocks and assets, for whatever reason, people who stay in are going to suddenly be losing money.
Of course, every day sees many trades coming and going on every single stock there is, but with binary options, you can invest even if the trend is downwards and make just as much profit with it going one way as with another if you predict the trend correctly.
Here are the top ten reasons why you should be trading Dow Jones indexes with binary options:
2) The ease and low entry barrier to entry of trading binary options are a great way to invest your time and money because you can enter the DJIA without a lot of money.
As you might know, entering trading on the markets costs a lot of money – a lot of money which most people don’t have. That’s one reason why most people can’t, or don’t, trade. Since some shares can cost even hundreds of dollars a piece, most people don’t have that kind of money laying around to become an investor.
In fact, one of the dreams of most people is to have enough money to finally invest one day. But with binary options, you don’t need to be rich to start. Anyone can do it. It only costs a few dollars to get started at most. You can even spread it around a bit and get going in your investing in just a few minutes.
3) Diversifying your portfolio is what everyone tries to do when investing. That’s because you minimize risk this way. If you lose on something, you won’t be losing it all. But doing that with the Dow Jones market is extremely difficult.
And why? It’s because it costs so much money to do. Most people only have a couple of assets in a few companies at most. They can’t afford to do more than that.
But with binary options, you can spread yourself out as much as you like. It only costs a few dollars each investment into an option, so with twenty dollars, you could be investing in half a dozen companies, and you can make much more return on your investment than with regular investing.
That’s one way that binary options are so much better overall for investors and why you should give it a try like the rest of the professionals have been doing.
4) Predicting trends is hard to do, whatever your market. But one thing is for sure: it’s much easier to predict overall trends than to have to predict one single trend in one company over a long period of time.
That’s why it’s better to invest in binary options and why many professionals have been doing that since the last few decades. The reason is that it’s easier to see trends in a few minutes sometimes than over the long term.
A few years in investing can be an eternity and anything can happen. And when something does happen, it’s likely to see your money gone more often than not. Investing is a risky business, and binary options were created to minimize the risk on the Dow Jones index.
It was created for professional investors by professional investors, which is why it’s proven to be so popular.
5) Investing in the DJIA is very risky sometimes. Far riskier than investing in binary options. And why is that? Well, one of the reasons is that investing in the Dow Jones index can lose you hundreds or thousands of dollars if something goes wrong.
And in investing, things can and will go wrong. So the question is: would you rather lose hundreds or thousands if something goes wrong, or only a few dollars? And if your next question is about how much you’d get out of investing in binary options, then you should know that at IQ Option, you can get far more percentage ROI than simply trading on the market. In fact, you’ll never, ever, see the kinds of percentage returns on asset trading in the Dow Jones as you will in binary options. That’s because it’s a system which was created to minimize risk for everyone concerned, including the trading companies.
6) Why not go with a system which was created by professional investors? The fact is that binary options were created as a means to minimize risk and trade regulations which tie up the professionals. It was created by professional investors for professional investors.
For decades, only professional investors could trade in binary options instead of the Dow Jones index. For decades, they held it for themselves. And only recently was it opened up as something for the general public.
But this also has a benefit, because you know that it’s been tested and tried as a system for decades before being “released” to the public. With such a tested system held to the highest financial expectations and standards, you know you’re dealing with a level of professionalism at IQ Option which is unrivaled in almost any other system which you can use to invest.
7) On the best binary trading platforms, they will give you far more return on your investment per trade than at the DJIA. Binary options offers huge returns, up to 80+% per investment. You’ll never, ever, see that sort of ROI on any asset profit at the Dow Jones.
Investing is fun, but it’s about making money and you want to make as much money per trade as you can make. If not, why invest in the first place? However, you won’t get those kinds of returns at the Dow Jones index.
You will, however, get money on assets traded on the DJIA when you trade in binary options at IQ Option. That’s because you’re trading in options on assets and not on the assets themselves.
You risk far less, you make far more. That’s exactly what every kind of trader wants to hear. And that’s why it’s become so popular to trade in binary options in the last few years.
8) It’s easier than trading on the DJIA. In fact, it’s so easy that it only takes about a minute to get set up at IQ Option. A new IQ Option trader simply goes to the front page, makes an account, and can start trading in binary options right away. And if you don’t want to start trading even a dollar here or there to test it out, why not simply take advantage of their free testing grounds?
Anyone can trade with “play money” to learn how it’s done before you spend even a single dollar. It will cost you nothing and you can’t say that about trading on the Dow Jones index.
After all, why start trading on something you’ve never tried before with real money when you can just do trial runs until you understand the system? You’re not there to lose money, after all. You’re there to make it.
9) Binary options are the best way to stop investing when things go wrong. I’ll explain: When something goes wrong when you’re trading on the Dow Jones, you can lose a lot of money. We’re talking about thousands, or even tens of thousands, of dollars.
Naturally, people don’t like to think about it, but that’s the fact: investing is a risky business. However, with binary options, you can trade in DJIA assets for only a few dollars a piece.
And the fact is that you’re not putting all your eggs in one basket at once. You’re trading a few dollars at a time, knowing exactly what you could lose if something does go wrong, and you know it ahead of time.
It means you’re not risking your house, your car, or your shirt every time you invest in binary options. It also means that if an investment goes bad, you can stop for the day and not worry too much about it.
10) Investing on the DJIA is not easy. In fact, it’s complicated. There are a lot of regulations and many problems with investing, which is why it’s mostly only professionals who do it – or people who don’t really know what the risks are.
That’s why binary options were created: to get around all of that and try to simplify the process and make it far less risky. There’s very little risk in losing a few dollars here and there, even if you’re losing a hundred dollars in a day.
That won’t even buy you the price of most shares on the Dow Jones index. But with binary options, that’ll buy you many investments in many companies over the whole day, if you want it that way. It’s also far less complicated because the process is so simple that anyone can do it. That’s another reason why so many people have chosen to invest in binary options at IQ Option.
DISCLAIMER: Futures, stocks and options trading involves substantial risk of loss and is not suitable for every investor. The valuation of futures, stocks and options may fluctuate, and, as a result, clients may lose more than their original investment. The impact of seasonal and geopolitical events is already factored into market prices. The highly leveraged nature of futures trading means that small market movements will have a great impact on your trading account and this can work against you, leading to large losses or can work for you, leading to large gains.
If the market moves against you, you may sustain a total loss greater than the amount you deposited into your account. You are responsible for all the risks and financial resources you use and for the chosen trading system. You should not engage in trading unless you fully understand the nature of the transactions you are entering into and the extent of your exposure to loss. If you do not fully understand these risks you must seek independent advice from your financial advisor.