Binary Options Trading As an Investment Vehicle

It is human nature to try to make the most of our assets, including our financial assets. Apart from those people who have no ambition and throw away their money, the majority look for ways to increase the amount they have. They look to the future, and try to build enough resources to let them see out their retirement in a financially stable way.

One of the most common ways to try to build up cash reserves is to use existing cash to put into some kind of investment scheme. There are many different investment vehicles available, and one of the most popular ones in recent times has been binary options.

Like all investment schemes, there is an element of risk involved, but one of the reasons binary trading has become so popular is it provides an opportunity to make substantial profits over a relatively short time period.

Bad investments

There was a time when people were quite happy to leave their spare cash in a bank. They felt it was secure there, and that gave them such confidence that they did not worry too much about the poor rates of interest they were receiving.

Today, unless you have a very large sum of money to invest, putting your money in a savings account is like throwing it away, albeit over a long time period. Interest rates on standard savings accounts are now almost always lower than the rate of inflation.

That means that even though the dollar amount in your savings account may be growing year on year, its real value is actually falling. In other words, you can buy less with the amount in your savings account now than you could with the amount you originally invested. In the present financial situation, putting your money in a bank savings account has to be regarded as a bad investment. This is especially the case for long term goals, such as a comfortable retirement.

Why binary options trading is a viable alternative?

As already stated, binary trading provides a way to make decent profits over relatively short time spans. One of the key aspects of this type of trading is that results are known quickly, giving investors the option to take corrective action before large losses are incurred.

Later, we will look at how this type of trading compares to other forms of investment. First, it is important for the potential trader to understand what this type of trading involves, and how it is different from other more standard types of investing. The best way to do this is to compare this type of trading with stock market investments.

To make our explanation clearer, we are going to create a fictitious company called Ace Products Inc. whose stocks are traded on the NASDAQ. The company is doing well, and its share price has risen by more than a dollar in the last year to $7.95 today.

Stocks

Stocks or shares are issued by companies that have floated on one or more of the world’s stock exchanges, such as the NASDAQ or the London Stock Exchange. Companies issue shares at a given price, and anybody can then buy some of these shares. Shares are bought and sold through the stock exchanges. The price of shares is dictated by supply and demand. The more demand for a given the share, the higher the price will be.

When you buy shares in a company, you become a part owner in that company, no matter how small your share allocation is. That means you have a say, albeit a tiny one, in how the business is run.

Shareholders are entitled to vote at the company’s AGM, where they can take part in votes to appoint people to the board, and to approve the company’s annual accounts. Most people who have small shareholdings do not bother to attend the AGM to do this. They can appoint a proxy to vote on their behalf. If they do not attend and do not appoint a proxy, they assign the right to vote on their behalf to one of the board members.

If the company they have invested in makes a profit, the board may decide to issue a dividend. The company decides it has a surplus of cash that will be divided amongst the shareholders. Each share will have some monetary value, and the total payable to a shareholder is the share dividend value multiplied by the total number of shares he or she owns. When the dividend is paid out, most companies permit shareholders to reinvest the money by purchasing new shares, or they can opt to receive a cash amount.

For the purposes of our illustration, we will assume you own 1,000 shares in Ace Products Inc., which you bought 6 months ago at $7.25 each. The company has announced that it will pay a dividend of 2c per share. That means you are entitled to a $20 payout from the company. For simplicity’s sake, we will ignore brokerage fees and bid/offer spread (of which more later), but if you decide to sell the shares, you can now make a profit in your investment. Here’s how:

The Importance of Home Based Business Scripts

I was having a conversation with one of my business partners tonight, and the topic came up about home based business scripts. We were actually talking about how much of a struggle it is for new business owners to get on track in terms of getting over the anxiety to call their people to promote events, products, or services. My response was that it’s just a natural part of the sales process, and that people should get over it. We discussed various ideas and threw around some new ones to help people overcome the fear, but it all came down to home based business scripts.Without having home based business scripts in front of you to sort of act as a verbal guide, it’s mortifying to so many individuals who start a home based business that they need to pick up the phone and actually talk to people. I know many people who will actually take the time to come up with excuses just so they can get out of a call workshop or calling their people. It’s very sad, because if they only knew how much their friends, family, and acquaintances actually thought of them, then they wouldn’t be so fearful. The truth is, they rarely think of you, so why waste your time fretting over people who don’t even think that much of you?Do you ever wonder why movies have scripts? It’s because it doesn’t ruin the flow of the movie, because it allows the actors and actresses to follow a rubric so they won’t stall and create more “NG” clips. I think people refer to these as bloopers, but you get the picture. Home based business scripts are equally important when it comes to your own success, because if you had to “wing it,” you would probably be stumbling and bumbling and the exchange would be an utter fail with the customer or prospect, because they would soon realize that you have no idea what you are doing.I know that some of you are rolling your eyes, because you think that you are a superstar in the industry, and that you can make any call, without home based business scripts, and you’ll be successful. Well my friend, I can tell you this: superstars only come once in a lifetime. Everyone else learns how to be professional through scripted performance.Any good home based entrepreneur knows that the key to success is through duplication of teachable techniques that everyone can do. Establishing home based business scripts is one of those duplicatable techniques that can trickle through your organization. Flying by the seat of your pants is definitely not considered duplicatable.So what comprises really great home based business scripts? Let’s take a look:1) Good script packages cover almost every occasion possible so your new business partners always have a way to get in a conversation and get out with contact information.2) The script is clear, concise, and easy to follow without any real pre-coaching3) Scripts are made with ever-changing dynamics in mind, such like a decision tree, where different scenarios that are presented are already covered in the tree to guide the prospect through the conversation4) Scripts are so well-written that they don’t really leave any room for interpretation or modification of the wording. 5) Good scripts should have a setup and follow-up system before and after the script content, so the prospect knows how to open, and more importantly, CLOSE!6) Scripts are generally free of foul language or slang, so it removes any angst or ambiguity. 7) Scripts have good use of emotional language and trigger words that the prospects can identify with to create value.During that exchange with one of my business partners at the beginning of this article, I actually came up with some fantastic home based business scripts that are virtually fail-proof and get the job done every time. If you want to create your own scripts too, I would highly recommend it! It’s good practice, and it can help to improve your writing ability and imagination.If you are just starting out and want pre-made scripts, there are a number you can find online. Just figure out what works for you and is a script that you are comfortable using during a phone conversation. Anything you can do to make that experience easier and less nerve-racking is a plus.

Home Based Business – How to Earn Extra Money While Studying

Running your home based business while studying at university is a great way to make some extra money and to hone your entrepreneurial skills. You must have heard stories about some enterprising students who set up their home ventures and made decent money from them. You may be wondering how they did it.In the current grim economic times, students can ideally distinguish themselves by setting up and managing their own business. This will not only perfect their entrepreneurial skills but also make money in the same time.Distinct advantage:If you are a student and managing your home based business, it gives you a distinct advantage in the highly competitive job market. The home venture that you set up while studying at university can turn into a real business enterprise later. Let your student days be the groundwork for sharpening your business abilities.You will learn about cash flow management, marketing and managerial skills. At the same time you can later, if you wish, take up a corporate position since any employer will recognize and value the skills that you have developed. Although when people normally get the taste of business management, the normally do not tend to work for others.Developing the business idea:Many universities encourage their students to develop their entrepreneurial ideas and often there is a good support system for setting up a home based business. You might want to find out if your college has appointed anyone that can help you with this.You should consult and take guidance from other successful student-entrepreneurs. This will help you gain not only the start up experience but it will also translate your business ideas into real entrepreneurial programs.You don’t have to be a student on a business course to start and run your enterprise. By setting up your own ventures, you are also perfecting your managerial skills. People from all walks of life have shown their capacity to run successful businesses.Becoming creative:You need to pick up some creative ideas to earn extra money. With hard work and innovative ideas you can turn a home base business into a great source of income. If you have a burning interest in some hobby, think of cultivating it and converting it into a concrete business plan.Striking a balance:You may have to sacrifice a bit for running your enterprise while being a student. For example you may miss going out with your friends. Sometimes your business engagements will interfere with your studies especially during the exams. It may force you to cram for exams and work late into night to get through the course.However, a diligent student can manage it. It may be difficult initially but you will get used to it. You will be able to know how much time you have to spend on business and when you have to pay attention to your university course.Student-entrepreneur ideas: There are unlimited opportunities on the internet for students turned entrepreneurs. Your professors or staff may have some connections and ideas to help you establish your enterprise.All you need is to keep your mind open. There is no doubt that starting your own home based business needs a good amount of optimism. Students have the kind of optimism which is needed to get started. Your entrepreneurial ideas can become a great source of income while you study and even after that.