Online trading of the financial markets has now become one of the most popular ways to make money on the internet in Ghana. However, there are several ways through which you can trade the financial markets, online. One of such is binary options trading. By way of introduction, binary options trading basically involves speculating on the potential price movements of assets listed in financial markets.
Practically, when you trade binary options, you are betting on the potential direction that you feel or speculate that the asset price will move after a specific period of time.
When we talk about “assets” here, we mean liquid financial instruments whose prices move quite fast. Such instruments include stocks, cryptocurrencies, commodities and currencies. Although less common, we may also have bonds, ETFs, indices, and many others.
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Speculating in the financial markets can either take the form of investing or trading. However, before we continue, it is quite important to properly define and explain certain terms such as “financial markets”, “investing” and “trading”.
In binary trading, you really are not into investing in the actual assets or instruments listed above. What you just want to do is see the way that the prices will move. These movements in prices happen almost every second, because of what is known as liquidity.
The prices of the assets – stocks, commodities, cryptocurrencies, indices – move either up or down. To speculate properly, it is recommended that you conduct some analysis. Upon making the analysis, if you believe that the price will move up, you go for a BUY trade.
However, if your analysis tells you that the price will go down after the lapse of the time set, you go for SELL trade. If the analysis turns out right, you make a profit. If it turns otherwise, you lose a fixed amount of your capital.
It must be said that binary options trading is quite easily one of the most profitable ways to trade and make some good money from the financial markets. This can be the reason why it is very popular amongst Ghanian traders.
This can be said to be a result of the really high payouts that traders get when their trades go in the right direction. Typically, when your predictions turn out right, you get paid some percentage of the amount you put up as risk capital. This percentage can be as high as 75% or even up to 90%.
Comparing this to the returns you get from other investments, it is actually very juicy and profitable.
However, we have to note that as much as binary options trading can be profitable, it is as well highly risky. It is not uncommon to see traders who lose almost all of their capital.
The financial market is a platform through which persons can get to buy and sell financial assets. Financial markets serve as avenues through which speculators can profit from financial assets. The financial assets, in this case, include stocks, bonds, cryptocurrencies, commodities, and many others. In finance terms, there are two major ways through which persons can go about profiting from the markets, and those are through investing and trading.
When you invest in financial assets, it means you basically purchase the assets for the longer term. In this case, you purchase the underlying assets themselves. That is, you purchase the stocks of say, Apple, Facebook, Netflix, Alibaba or Google to hold for some considerable amount of time. The same thing applies in the case of cryptocurrency. Investing in binary options cryptocurrency Ghana means buying the actual coins to be kept till their prices increase. This is the traditional way to speculate in assets listed on the financial markets.
On the other there is trading. Trading involves buying and selling quickly – in fact, within the space of hours or days. And with the advent of technology, the modern way of trading does not involve you purchasing the actual or underlying assets. All you are interested in is the movements in the prices of these assets. You do this through what are known as derivatives.
There are many advantages of trading as against actually investing. Trading allows you to bet on both the increase and decrease in prices. When you invest – that is, purchasing the actual assets – the only way you can make returns from the asset is if its price goes up; otherwise, you will be setting yourself up for a loss. However, if you are trading, you have the ability to profit by going long (buying) if the prices go up; as well as going short (selling), when the prices go down.
Opportunity for earning/profit – There are massive opportunities to earn from trading as against investing. Typically, your returns from each movement in price of the financial asset is increased significantly because of what is known as leverage.
Binary options are financial instruments that allow a trader to speculate on the direction of prices of assets in the financial markets. Here, you will decide whether you expect the market to go up or move down, and then you place a bet corresponding with that decision. If you believe the market will move up after a fixed time period, you go for a ‘BUY’ trade; but if you believe the market will go the other way, you choose a ‘SELL’. If your prediction is correct, you are paid a fixed percentage of the capital you risked, say between 75% to 90%, or even more. If however, your prediction turns out incorrect, you lose a specified portion of your capital.
There are significant risks attached with trading binary options, and a good number of traders do lose some or all of their trading capital. To however become a consistently profitable binary options trader in Ghana is quite simple, although not easy. You have to adhere to some rules including quality risk management, developing and sticking to a trading strategy as well as getting quality trading education before venturing to trade the markets.
There are several benefits attached to trading binary options, some of which are outlined below:
Limited Risk and Good Risk Management Capability
Binary options online can be traded using minimal amounts of money. This means that you can risk as much or as little as you can afford to. Furthermore, you are empowered to properly develop a risk management system. The way binary options works is that you are well aware of how much you stand to gain as well as the amount you may lose when entering a trade. Such risk management capability can really not be found with other forms of trading the financial markets.
Minimal Entry Requirement
The ability for binary option traders to trade small amounts at a time makes it a greatly affordable way to trade online. Many brokers allow you to make small minimum trades from as little as $10 (or even less), which means you can trade as little or as much as you want.
Higher Profit Potentials and Short Expiries
Expiry periods for binary options trades are much shorter compared to other channels to trading the financial markets. Expiry periods can range from as short as 1 or 5 minutes up to a week; with most other methods of trading, you don’t have such fixed expiry periods. Even where they are fixed, they are usually long. It is commonplace to see expiry periods of as high as 2 months.
This ability to quickly trade in markets for a short period coupled with the potentially high return rates of between 75% and 90% means that with a few quick successful trades you can make substantial profits.
Multiple Tradable Assets and Ability to Trade Anytime
Binary Options gives you the ability to trade several financial markets cut across different geographies. This helps you beat the limitations of timezones, as you can trade one market when the other is closed. With this, you can easily tailor trading to your lifestyle.
Simple Method of Trading
Binary options brokers have taken the initiative to make the process of trading binary options as simple as possible. All you really have to do is upon conducting your research, you select the market you want to trade, the amount you wish to risk for the trade and the direction in which you think the price of the asset will move.
You then go on to choose the expiry time, and wait. With this simple process, you can be on your way to making substantial profits if your trade turns out correct.
One other major advantage that trading has is its accessibility. In the past, participation in the financial markets was mainly the exclusive preserve of institutional investors – such as hedge funds and mutual funds – as well as ultra high net-worth individuals. The average individual retail investor was not able to really participate. This is because there was a high barrier to entry. Purchasing the underlying assets was usually expensive. For instance, to purchase just one share of Amazon Inc costs over $2,000. Many retail investors could not profit from Amazon’s stock. Also, purchasing just one ounce of gold costs more than $1,800 while one Bitcoin could go as high as $10,000. However, with derivatives trading, retail traders can bet on stocks or whatever asset at all, not only when their prices go up, but also when their prices go down. This is still due to the concept of leverage that allows you to control large positions by commiting just a fraction of the capital.
There are however downsides to trading as well. For one, it is extremely risky; there are high chances of you losing your money. In fact, statistics state that there are more traders that lose money than those who make money. It is not far-fetched to see traders who lose the entirety of their trading capital. This is as a result of the same leverage. Just as leverage can work for you, it can also work against you.
Nevertheless, with proper trading education, a good trading plan, and a well-followed risk management Strategy, you should turn out well profitable.
There are several channels to go about trading the financial markets through the use of derivatives. One of them is known as Options.
An option is a contract to buy or sell financial assets – stocks, indices, forex – at a particular price, during a specified period upon payment of an amount, called Prime.
As an option buyer, you have a right, which you can use for a specified period of time until the maturity of the option.
It is important to note that option contracts, as their names indicate, are optional, that is, until the expiry date, the buyer of the contract has the option to buy or sell the underlying asset at the agreed price. If the market conditions are favorable to the realization of the expectations of the buyer, then he will decide to exercise his should to the purchase or sale.
Before you think of signing up or undergoing any registration process with any broker, you must be assured of the credibility of the broker and the quality of its brokerage platform. The trading platform you choose to register with must possess some cogent features; otherwise, you should not go for it. This is because there are as many binary options platforms out there as there are brokers. However, not all of them are worth getting registered with. If you go for the wrong binary options platform, you might be setting yourself up for real losses.
We have made our choice as to the broker and the brokerage platform or software upon which we choose to conduct our binary options trading. However, before we can make any trade at all with the binary options broker and on the platform, we have to undergo a registration process to get signed up to the broker’s trading platform.
There are a number of features and qualities which almost all good binary options platforms share. Some of them are summarised below:
The trading platform must support fast and efficient execution of trades.
The platform must display up-to-date and accurate live prices of assets traded on it. If prices displayed lag even by a few seconds, it can lead to significant losses in the ultra-volatile world of financial markets trading. Your trading platform of choice must be set-up in a way for you to be able to properly measure the risks involved in each trade you wish to execute. This can help you avoid significant losses.
Each trade you enter must be based on a reasonable basis. This reasonable basis should however arise from carefully done analysis. To be able to properly conduct analysis, you need the right tools. For technical analysis, you need charts, oscillators and indicators that can help you reasonably forecast the likely movements of the price of the assets you are trading. On the other hand, to conduct fundamental analysis, you need access to live news, events and expert analysis.
Your trading platform must provide you with all these and more.
Red flags to watch out for when selecting a binary options platform
While you look at the upsides in selecting a binary options platform of choice, you should also look at potential red flags that help you avoid the wrong brokers. They include:
You have to research properly to ensure that your binary options trading platform of choice meets the above criteria. Once you have decided that, you can then proceed to the registration and login stage.
Upon registration, your binary options get opened and from then you can launch your trading.
We have to note that there is no single or uniform registration process for getting signed up to binary options trading. Each binary options broker largely has its own formula for registration, although more often, the processes tend to be similar across many binary options brokers. Where to Sign Up: For many brokers, you can sign up through any of their trading channels – PC, or binary trading mobile application.
For others, you have to go through their website, to undergo the registration process. Nevertheless, no matter the channel that is used, there are generally two ways to go about registering with binary options brokers.
There is the Registration Form option. On the binary options broker’s mobile app or the website, you need to fill out certain details about yourself so as to enable the broker to assign a trading account to you.
With many brokers, you only need to submit your email and name to get an account opened. You will be asked other information and details about you much later. Usually, they will ask you to verify your registration by clicking the verification link in the mail they send to the email you submitted.
Typically, however, this type of account is significantly limited as to what it can be used for. Usually, with this type of account, you really only can have access to a binary options demo account. If you want to trade with your own money and get a live account, you may need to do further verification.
However, with other Brokers, they demand such information right at the registration point. Such information you will need to put down include the generic full name and email address; your country of location and specific address, phone number and other information that the broker deems fit to ask.
Also, some brokers give those who wish to register the option to sign up via social media. Thus, if you have a Facebook account, you may wish to sign up via your account. Much later, you will be asked to submit some verification documents such as your national identity card or driver’s license or International passport.
To login, you simply need to go to the site and input your email and password. Alternatively, if you used Facebook, you can login through that as well.
There are two types of trades in options trading: call options and put options. A call option allows the buyer to purchase a certain amount of underlying asset for a period and at a price agreed upon in advance. When the buyer exercises his call and asserts his right of purchase, the seller of the call is obliged to deliver the underlying assets at the price fixed in advance.
A put option, on the other hand, allows the buyer to sell a certain amount of underlying asset for a period and at a price agreed upon in advance. When the buyer exercises his put and asserts his right of sale, the seller of the put is obliged to buy the underlying asset at the price fixed in advance.
The above binary trade system is the traditional, common options Trading system as is done in the United States. However, this traditional form of trading options is really common with large institutional fund managers with only a few wealthy individual traders involved. This is mainly due to the level of formality involved.
Binary trading involves some reasonable level of risk. As such, the government largely regulates its trading; that is, some laws have been made guiding the way options trading is done. Such laws cover a number of areas, including the minimum amount of capital required before one can start trading options.
There are several ways to go about trading options; and new, innovative methods are being developed as time goes by. One reason for this is because the original and traditional method of trading options as described above is really only available in the United States, and less in other parts of the world. One of such innovative ways is via the use of binary options.
Binary options are financial instruments that allow a trader to speculate on the direction of prices of assets in the financial markets. Here, you will decide whether you expect the market to go up or move down, and then you place a bet corresponding with that decision.
If you believe the market will move up after a fixed time period, you go for a ‘BUY’ trade; but if you believe the market will go the other way, you choose a ‘SELL’. If your prediction is correct, you are paid a fixed percentage of the capital you risked, say between 75% to 90%, or even more. If however, your prediction turns out incorrect, you lose a specified portion of your capital.
There are several ways to go about acquiring this knowledge. First, you can read blogs and websites like this one to get the general overview of the financial markets and how you can trade them with binary options. However, we have to state that the level or amount of knowledge that you can gain from these is limited; in that, they can only teach you general knowledge of binary options trading, they cannot teach you how to actually trade – that makes analyses and enter trades.
One great way to go about getting this crucial knowledge of how to trade is via trading courses, either free or paid ones. Free courses are great; especially if you are just starting out and want to understand how the market works. You can also learn some advanced trading techniques from them as well.
Places from which you can get quality free courses include your broker’s education platform, as well as education websites like Udemy.
However, it has to be stated that you can only learn so much from free courses. To learn advanced, profitable binary options trading, you might have to sign up for paid courses. This is because, ideally, almost no profitable trader will teach you his strategies for free.
Still, you must be careful; not all paid courses are credible. There are in fact a number of binary options trading education scams out there.
These scams manifest in the form of a person advertising you to pay to enroll for his trading course – and it ends up that the course is filled with basic materials and knowledge that you can easily get for free.
In order to avoid this, you should properly conduct some research by checking for reviews of whatever paid course you are interested in. Furthermore, we strongly advise that you practise for some time on a demo account. The demo account is a risk-free way for you to practise whatever your trading skills and strategies.
Finally, it is recommended that you commit to constant practice and review of your trading from time to time.
Binary options represent a very profitable way for you to profit from the movements in global financial assets and instruments. In fact, it is one of the most profitable. Can you become a millionaire trading binary options? Yes, it is very possible. At the same time, it is very difficult. There have been quite a number of persons who have achieved that feat all over the world, and also in Ghana. But it takes long periods of efforts, commitment and diligence. We can go on to list binary options millionaire success stories in Ghana.
However we believe that their stories are not as important as the principles and mindset that created such success stories. Listed below are some of those beliefs, mindsets and principles that most binary options millionaires both in Ghana and across the globe imbibed:
Never Depend on Luck
We have to state it; there are a number of persons who have had streaks of profits from the market, even if they were not knowledgeable enough. Some of these persons record good profits for a while, but more often this doesn’t last. You can witness profits for a considerable amount of time after which everything goes bust.
To stay profitable in the market for a very long time, and to put yourself on the path to becoming a binary options millionaire in Ghana, you have to subject yourself to proper trading education.
Binary Options trading is no talent; it is a transferable skill, and to get better at a skill, you have to dedicate quality time, attention and practice.
Reasonable Expectations from the Market
One surprising mindset of millionaire binary options traders is that they don’t go into the market looking for big breaks. Of course you can make serious money, in fact running into millions from binary options trading. However, you shouldn’t expect to make all that money at once.
Having high expectations from trading will lead you to overtrade, thereby exposing you to major risks.
Successful traders go into trading with realistic and reasonably achievable goals, and once they clinch them, they leave the market.
Cutting Losses and Proper Risk Management
Just like everyone else in the market, binary options millionaires also record losses; however what separates them from the pack is that they do well to cut those losses and not get emotionally attached to them. Similarly, they use proper risk management for all the trades they enter, and as such minimise those losses.
*CAT- Central African Time.
It is common knowledge that binary options trading is a very profitable way to speculate on the movements of prices of assets listed and traded in financial markets all over the world. In Ghana and all over the world, there are countless numbers of persons who are milking the markets and bagging good profits on a daily basis.
However, although binary options trading is profitable, it is quite difficult to come across such profits. You may have probably heard that a vast majority of traders lose money to trading. In fact, some traders are perennial losers. That is, their losses outdo their profits. Statistics generally put the percentage as high as 60%; or even 90% in some cases.
That is why, when you visit binary options broker’s websites or other promotional materials, you see the notice that trading in binary options is risky and not suitable for all.
So how come some traders are recording successes while some are perennial losers? We have to state that most times, what differentiates the winners in binary options trading and the rest is the adherence of the successful ones to certain principles and attributes.
For one, successful traders do develop a trading plan. By way of definition, a trading plan is a written piece containing the ways through which you plan to make your trades. It generally contains all the principles that guide your trade. What do you look at before making a trade? What requirements must the market fulfil before you enter the trade? How long will you hold the trade? What factors must be present for you to close the trade?
These and more are what you include in your trading plan. As you will agree, the importance of a trading plan cannot be negotiated.
One crucial benefit you get from drafting a plan and disciplining yourself to abide by it, is that it helps you avoid mistakes that are avoidable. This as a result will help you record only minimal losses. The human person is prone to a lot of errors, but a well-written trading plan will properly guide your trading.
Then, the successful binary options traders generally adhere to and comply with basic risk management strategies. Trading the financial markets – either via binary options or through whatever means – is risky. But it is up to a discerning trader to work out ways to significantly minimise those risks, so as to protect his account.
Nevertheless, despite the fact that binary options trading is legal within the country, you still have to be careful as to the types of binary options trading-related services that you pay for or subscribe to.
This is all because Governments all over the world do not have legislation to properly protect traders who are their citizens or prevent them from falling into the hands of scammers. The binary options services you subscribe for are usually not based in your country. A good instance is found with binary options brokers. They are spread around the world, and can be found mostly in places like Cyprus, St Vincent and the Grenadines, Malta amongst others. None of them is located in Ghana.
Thus, it will be quite difficult for any government to bring them to book any time they commit any manipulation against their own citizens.
By “legal”, we mean is binary options trading allowed by law within Ghana. Or in other words, do the laws and regulations of Ghana allow Ghanian traders to engage in binary options trading.
Despite the popularity of binary options trading in many countries around the world, it is still not available to traders in some countries. This is because their governments have banned its trading. It has to be stated that binary options trading is still mired in controversy as some do not accept it yet as a form of trading. Countries that have banned binary options trading include the United States, Japan, Australia, Canada, Russia, North Korea, Syria, Belgium, Iran, Israel and notable others.
In the above countries, there is legislation by the government specifically stipulating that binary options trading cannot be done within them. As such, binary options brokers are forbidden from providing their services to residents of those countries.
However, in many other countries, there is no express government law banning binary options trading; and this automatically translates to the fact that binary options trading is fully allowed in those countries. Such countries include almost every other country that is not listed above. They include the United Kingdom, most of the European Union, many countries in Africa, Latin America and the Middle East. Ghana is one of them. As such, binary options trading is very much available for Ghanian traders.
You can see evidence of this right in your device play store. On the Google Play Store (if you are using an Android OS device) and Apple App Store (if you are making use of a device powered by the iOS), you see that many binary options trading mobile apps are listed therein.
As you might have seen severally, there are a lot of scams in binary options trading. This is chiefly one of the reasons why some countries (as discussed above) have totally banned the trading in binary options.
Many traders have found themselves in bad situations due to scams. However, this is not enough for you to stay away from binary trading, as there are a lot to gain. You only need to be able to spot the scams. The scams take manifest in various forms, notable of which are listed below:
Binary trading signal scams exist in the form of phonies promising to send you daily winning signals to trade the markets. They tell you that with their signals you can make extraordinary amounts on a daily basis, in the region of 200% or more returns daily. They pose as expert traders with several years put into the craft, claiming that they have discovered “secret” methods that can give you maximum winnings every day. You should never fall for this because it is quite difficult to do signals in binary options.
A growing method of scamming people under the guise of binary options trading are investment scams. Here, persons pose as professional and experienced traders; they ask you to invest your money with the promise that they will help you make exponential returns. They are getting quite popular and more aggressive on social media of recent. Usually what comes out of this is that they take your money and you don’t get to hear from them anymore.
This is by far the most popular form of scams you will find in the binary options space. Fake binary options brokers entice you to open binary options trading accounts with them, with promises of benefits that cannot be found anywhere else such as risk-free trading and high payouts, amongst others.
What happens is that they take your money and then that will be all. Alternatively, they set up their brokerage platform in a way to make you incur losses consistently, so that they can gain.
To avoid this, thoroughly research any broker you choose; and then getting recommendations from persons who have used that broker in the past is important. Some notable brokers that accept Ghanaians include IQ Option Ghana, Olymp Trade Ghana, Deriv.com Ghana, Binary.com Ghana, amongst others.
A trading bot is a software that enters and exits trades without you being physically involved. Many scammers pose to sell “profitable” bots, whether binary options robot Ghana or cryptocurrency trading bot Ghana, of which many might not deliver promised services, may not be the right choice for you or might even be a scam.