MaestroTrade Broker website: https://www.maestrotrade.com/
Investment in stocks of various companies is one of the most traditional forms of trading. To buy a stock and sell it on an increased rate is the simplest form of trading which can be done even by a novice. With stock trading in FX Option in realized that chances to earn profit is much higher in it as compared to traditional way of buying and selling the stock. It is not only convenient but can fetch you a good amount in small period of time.
Upper limit of the loss if fixed!
Best part that I loved the most while stock trading in FX option is that upper limit of the loss that can be booked by you is fixed. You know even before making the call that this is the maximum loss you can incur in a particular call. The loss amount cannot go beyond a limit and trader is more or less mentally prepared for that amount. And the good news is that there is no upper limit to the profits you can make. Your profit amount can go huge in real terms of work. Higher the movement of your stock in desired direction higher will be the profit booked by you.
Slow stocks can also make you earn money!
In traditional system of trading slow stocks may make you earn small profit or no profit at all. But what I observed in FX Option is that slow stocks can also fetch a good amount of profit to you. It is solely because of the fact that many trading platforms let you hold the call for the entire trading day. Slight movement of the stock in desired direction and you have booked a profit for yourself. Degree of movement in the stock does not have much importance in making profit.
Technical and fundamental market analysis!
As you start trading in FX option you will realize two type of market analysis can help you in making a successful trade entry. First type is known as technical analysis. In this kind of analysis you mainly analyse various charts, graphs, pie charts and other statistical data available on internet. This statistical data can help you in understanding the pattern followed by the stock or the companies with similar stocks.
Second analysis is known as fundamental analysis. This is mainly based on being updated with all the stock related news and studying the mood of the market. This analysis involves current market situation, economic conditions of the nation, recent economic or political news that can affect the index, crucial government policies or laws that can affect the price of the stock etc. All these information can play a crucial role in deciding the direction of movement of the stock.
I personally believe that any trader should not limit himself or herself to a particular kind of analysis. A trader should be flexible enough and follow combination of both the market analyzing systems to reach right conclusion.