Financial Independence with Trading
What are your long term financial goals? On the broadest level, most people have the same goal: to become independent and have the freedom to pursue your interests without having to worry about money. Of course, for the bulk of us, this means having a flow of money coming in that will be more than adequate to cover the expenses that will add up.
If you are the kind of person that likes a big project, or likes the “do it yourself” concept, taking charge of your finances to realize your dreams can be a fun and exciting adventure. It will be difficult, for sure, but all things that are worthwhile are a challenge.
It helps if you have experience and a ton of money to work with, but most people don’t. Instead, you might have set aside $1,000 and have no experience. You could put that money in a mutual fund, and in twenty years, you will hopefully have earned a couple extra thousand bucks–hardly enough to retire on. Or, you could be active with your money at Anyoption and find stocks, indices, and commodities to focus on to grow your cash on your own much faster.
Most people find that an active, short term approach increases risk in theory, but grows your money faster. More money in a more timely fashion is always better. The stock markets as a whole usually grow by about 3 percent each year, but top traders can earn around 10 percent on a consistent basis year after year. Many independent day traders crush this number. Binary options are geared toward day traders, but because they are not as heavily restricted as the stock markets, and much more accessible than Forex trading, many traders like the freedom that binary options give you. Also, they are perfect for new traders without a ton of money. The trades are short in nature and limit your time exposure risk. A traditional day trader always has to worry about timing executions and ending them perfectly, but a binary trader has that matter already decided for them before they begin. It’s a great way to force discipline upon your trading if this is difficult for you, too. Many experienced traders thrive here because of this fact.
The end result, though, is that when you want to enjoy your cash, there will be a lot more of it. Obviously, not everyone makes money in the markets, but there’s no reason why you shouldn’t if you put in the honest effort needed to be a success. The long term repercussions of increasing your profit rate are huge. Let’s say you start out with $1,000 and don’t add anything else to your funds. At 3 percent interest, about what you’d get from just placing it in a fund that matches the S&P 500 index, you’d have $1,349 in ten years. At a 10 percent interest rate, you would have $2,707–more than $1,000 extra. These numbers will vary based upon your own situation, and how much extra you decide to contribute each month, but you get the idea. One is passive and has minimal results, the other is active and does much better for you in the long run. That’s a huge difference, and it is a very realistic difference for you to experience if you do decide to take charge of your financial well being. Again, it’s not for all, but for those that like challenges and doing things on their own, it is a great way to grow your money faster once you find the right method of trading for your situation.