General investing wisdom states that short term events and fluctuations in the market do not impact your long term goals. This is commonsense, but it shouldn’t be a deterrent from your short term trading. We all have long term goals, whether they are to save enough for retirement, or to put a kid through college, or even to save up to buy a luxury property. These are big goals, and those that focus just on long term investing will tell you that the best way to achieve them is to set aside money every week or every month and use compound interest to your advantage. Through dollar cost averaging, the ups and downs in the market will be evened out and the power of inflation will go to work for you, growing your money slowly so that your long term goals will eventually become a reality.
As true as this advice is, it’s not the only way to achieve long term goals. By focusing on a succession of short term goals, long term goals can also be achieved. Yes, you do need to keep in mind those long term goals so that you can make sure that you really are on the right path, but a series of short term trades in addition to your long term trades can also help you to grow your money, and many people that do this find that they are able to surpass their long term goals much more quickly than they ever expected to.
There are a number of ways to do this, but many traders have found that binary options help serve this strategy the best. Thanks to their low cost of entry, they are perfect for people that do not feel comfortable placing huge amounts of money into a high risk trading account, but still want to see noticeable gains. You can open an account for less than $500 at many brokers, and minimum risk amounts per trade range from $10 to $25. Most people find this to be perfectly affordable. And although profits are small, the risk is small, too. You can risk $25, earn a 78 percent rate of return for a profit of $19.50 when you’re correct, or lose $25 if you’re wrong. With time, you will find that you are right more often than you’re wrong, and you can watch your profits steadily increase.
To put it in perspective, let’s look at how the short term impacts the long term. Earning an average of a 6 percent return on your long term investments, studies say that if you want to retire with $1 million at age 65, if you start at age 30, you need to invest $728 per month. The average 30 year old doesn’t have this kind of money through their employment alone, though. However, when you supplement your income through trading, this number becomes far more attainable. Let’s say you earn $1,000 per week at your job, and after taxes, bring home $750. After your bills are accounted for, you have $150 extra each week to invest. If you were to earn another $130 each month trading binary options (something that is very attainable for even tiny accounts), you can take that $150 you invest each week, multiply it by 4 for $600, then add the $130 you earn per month trading for $730. With this kind of an outlook, you suddenly are right on pace to retire as a millionaire. It’s a short term strategy that serves a long term goal. All you need to do is be a good enough trader to squeeze out a tiny profit each month. Even those that are pretty new to the world of finance or binary options have the ability to do this.