Exploring My Options
As I’m getting older, I’m finding myself with a bit more money in the savings account and a willingness to take a few more risks to make that money work for me. When I was younger, living what seemed like a life destined to remain paycheck-to-paycheck forever, investing was never an option. Now that I have money lying around to play with, there are many different things I want to try in terms of investing. I’m already making max contributions to my 401K, so retirement isn’t a reason for me to play the stock market. Honestly, I just want to have a little bit of fun, learn a few things, and hopefully see a decent return of investment.
Something I’ve discovered that I really like is trading using binary options. According to this, it’s a bit closer to making a wager than it is buying a stock or a currency, but the rewards are higher (and the risk is greater). Whereas most people buy a stock and let it sit, binary options trading is a bit different. Instead of buying a stock, you choose where you think a stock will be in a certain timeframe and, much like meeting the spread on a sports bet, you either win big or you lose your wager. For example, if I am watching stocks, and I see a stock that I believe will move up (or down) twenty points in the next eight hours, I purchase a binary option stating that “stock xxx will move up/down xxx amount by 5:00PM” or “stock xxx will close at 120 a share by noon tomorrow.” I buy that option for a set amount, and then if I’m correct I get a predetermined payout. If I’m wrong, however, then I lose the amount I used to buy the option.
It’s definitely a bit more complex than simply buying a stock and sitting on it but there is more opportunity for short term gain. That’s what interests me. I’m not worried about what happens over the course of ten years with one of my investments. That’s why I have a 401K and an IRA. I enjoy short term investments that have the potential for big payout. There’s definitely a learning curve, though. At first I didn’t grasp how to properly trade using binary options and I did horribly. Now, however, I’m doing much better. It’s definitely been an awesome experience though.