About a year ago, my grandfather passed away and left me a modest inheritance. I’ve been hanging on it, trying to figure out what to do with it. Personally, I think it’s enough money that I want to learn how to invest it instead of just blowing it on something dumb with it. I guess I should say that it’s enough money that I feel I can have a decent return, but since it’s money I didn’t expect, I have a little room to play with it and to learn from it. I’m pretty young and have a lifetime of opportunity to stash some cash, but if I can learn how the markets work now, then I can use that to my advantage all throughout the rest of my life.
While I have a lot to learn, I’ve taken an interest in Forex trading, specifically binary options after reading about them on this site. Binary options interest me because there is a bit of skill and a bit of risk involved, but the payouts are much higher. Basically, instead of directly investing in a specific currency, you watch the market and learn patterns / trends. You watch the market and if you believe that at a specific date and time, a certain currency will follow a specific trend, and then you invest. For example, if I believe that EUR will be worth a certain amount at the end of the day today, then I buy a $100 option that the EUR will be worth xxx at 5:00PM EST. If it hits, I will get a preset amount of money back (sometimes as much as 10x higher). If it doesn’t hit that benchmark, then I lose my entire investment.
As I said, trading with Binary options carries a certain level of risk but for a person who watches the markets closely, more money can be made in a shorter period of time. Sometimes a person can invest thousands of dollars over the course of years to see a return that barely keeps up with inflation if he invests in the traditional Forex market. A person who tries the binary option can see a 100%-1000% rate of return in as little as a day, but on the same token, a guy can lose that much in a day as well. Forex trading using binary options is interesting to me solely because of the possibility to win big, which is why I’m definitely interested in learning more about it.