In Control, but Not a Control Freak: What Should You Trade?
October 9, 2017
They say, being in control is good. Yet, being a control freak is bad. When it comes to trading, is control good or bad? And how much control is required? Today, we explore financial products, from binary options to stocks to forex, to see what should be your trading instrument of choice if you want to maintain control, but also value freedom, fun, and occasional spontaneity.
Betting vs Forex Trading
A while ago, Harborx ran a campaign ‘Be in Charge’ where we reached out to sports betting and gambling aficionados with a simple message: in betting you can rely on your luck, but forex gives you a bit more control as you get to rely on markets and market trends. Unlike betting, the forex market is ruled by proven trends and global events, with heaps of analytical knowledge traders can rely on. There will still be times when the markets will go against you, but more often than not, your knowledge, experience, and analysis will help you.
Binary Options vs Forex Trading
Binary Options is an interesting trading tool, where you bet currency pairs or stocks, trying to predict whether the instrument will go up or down in the near future. Binary options traders prefer it to forex as there is no waiting time: you win or lose immediately. In fact, this is where the name comes from -the word ‘binary’ stands for only having 2 options: win or lose it all. In binary options, you can bet on smaller amounts, as there is no margin requirement. When you place your bet, you’ve got 2 options: lose all the money you have placed or win around 80% of your bet in case you’re lucky. Pretty straightforward, isn’t it? Now, the main difference with forex lies in one important thing: control.
Once you have placed a bet in binary options, you have no way to get out of it. Not a good thing, if you’ve made a wrong decision – which, let’s face it, can happen to anyone! In forex, you can close your position manually anytime and cut your losses. And putting a Stop Loss helps you stay within the amount you’re prepared to lose. With forex, you still get the buzz, the excitement, if this is what you’re after, but you control your trade and your losses.
Stocks vs Forex Trading
Stocks are a popular instrument among many traders. However, due to a lower liquidity of the market, it is easier to manipulate. Some stocks also become an object of corporate manipulations, insider trading, and other issues. However, with forex being the most liquid market in the world, in addition to being decentralized, you remain in control of your trading decisions and less prone to outside abnormalities.
Summing up, currency trading is probably the best trading instrument for those who want to remain in control and rely on your own decisions while having the flexibility to secure your funds and control your losses. You can hold your positions for a while without the need of checking them every minute, and the latest features, such as Harborx Leaderboard and Missions, bring fun and excitement to your trading.
Risk warning: there is a high level of risk involved with trading forex, commodities, indices and other contract-for-differences. Past performance is not a reliable indicator of future results. You must be aware of the risks associated with trading directly or indirectly on margin. Please ensure that you fully understand the risks involved and do not invest with money you cannot afford to lose. Please seek independent advice if the risks involved seem unclear to you and refer to our full risk disclaimer.
This blogpost is brought to you by Harborx.com. Check out our website to see how your trading experience can be simplified.
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