Ways To Shift Your Marketing Strategy from Binary To Forex
Ways To Shift Your Marketing Strategy From Binary To Forex
Because of some the controversies that are surrounding binary options trading of late, such as the closure of one of the older brokers due to a suite of factors—from client complaints to lawsuits—there is some uncertainty about binary options trading itself. This has led some people to wonder if binary options trading is really for them, especially if they’ve had a bad experience with a trader, and feel like they want to try something else.
Forex trading, or trading on the foreign exchange market, is one possibility for people that got their start in binary options trading. There’s a bit of overlap in the way that these two financial products operate, which can make for a less difficult transition. But if you’re thinking of shifting your marketing strategy from binary options to Forex trading, there are a few things you should know to make that transition easier.
A Common Root
Forex trading actually preceded binary options trading, but both of them fall into the same general style of investment. They are a form of speculative trading. People already familiar with binary options trading know that this means the result of a trade isn’t about purchasing an asset and reselling it. Instead, “speculating” or predicting how an asset’s price will perform on the market, and making a trade based on that prediction is the way it works.
There’s some superficial similarity to betting, in that regard, but where betting is largely a gambling practice that may or may not be legal, both binary options and Forex trading are legitimately transacted in the world markets every day. Both of them are also conducted largely using software. This means that binary options traders that are already used to making trades themselves that don’t require the services of a broker, or commissions or other service charges can still enjoy the same lower costs for trading as before.
One big change that some binary options traders will have to adjust to if they want to make the switch is the focus of interest. While binary options trading covers traditional stock markets, commodities and even the Forex market itself, Forex trading, as the name implies is much more focused. If you’re not already familiar with the world of currency pairs and how the various currency markets work, you will need to start doing your homework. Binary options traders that focused on Forex markets to begin with will already have a head start in this regard, since the more serious, successful traders will have studied all these factors.
While studying the currency market can be complex, it is still a focused discipline, meaning that you can devote more time and quickly come to grips with it, since it’s devoted to a single topic. Once you learn about currency pairs, you’ll need to study up and ultimately decide on which pairs you’d like to focus your efforts. After that, there’s still the matter of following the economies and currency markets of the countries involved in your concentration.
Look At The Software
Both binary options and Forex trading use software to make trades, and this ultimately puts the responsibility of trading on the user. In most cases, however, the software used for binary options trading is not going to be the same used for Forex trading. This will mean that traders wanting to make the switch are going to have to learn the new software, in addition to the new conventions and strategies for trading.
There are some occasions where a particular type of software may actually include trading features for both binary options trading and Forex as well. However, that simply means additional functionality is included, and there’s still going to be a learning curve, as the exact same trading factors, conventions and functions won’t be carrying over from one to the other.
Keep Things Small
As with binary options, Forex trading doesn’t require a huge amount of capital in order to start trading. This lower “price of admission” is what has made Forex trading so popular with people all over the world since the 1990s. It played no small part in influencing the creation of binary options trading. It’s strongly encouraged, once you decide to make the switch, to keep your trades modest. If you’re the type of person that learns by doing, then make sure your education isn’t an expensive one that costs you money you can’t afford to lose.
You should also learn the timing of Forex trades. Binary options traders sometimes had the luxury of making trades in as little as a minute. It’s not going to be the same thing with Forex trading, so again some patience will be required learning this new system and making mistakes that aren’t too costly.
Formulate Your Strategy
One thing that may require a bit of extra care when it comes to Forex trading over binary options is controlling your losses. In binary options trading, you will always know what your loss is, because your loss is simply your investment itself. If you traded $1000, you will lose $1000 should your prediction prove to be incorrect. Forex trading does not have this same automatic “limit” for the losses on a trade. You can still control the loss and stop it from spiralling out of control, but you need to exercise more care in doing so, by defining your stop loss and profit margins.
Study different Forex strategies and trading techniques and formulate your own trading plan. Instead of relying on the fixed returns you’re used to in binary options trading, you’ll have to start defining your own limits. In Forex trading, you can keep a trade going and it may, in time, continue to generate profit, but it can also turn into loss. You have to start learning the strategies that will let you know when to stop trading and pull back before the losses escalate. You’ll need to start defining your boundaries for how much you’re willing to spend—and potentially lose—on trades, in addition to formulating tactics for profit.