Financial independence and trading: use the financial products that suit you

The Internet offers us unlimited possibilities for continuing to make money anywhere in the world while enjoying the pleasures of life.

As Jérôme said in his article Rentiers 2.0 ? The web gives us the opportunity to generate income anywhere, anytime. I can take a holiday in the tropics and still buy and sell stock if I need to. Thanks to smartphones, I can even do it lying on a deckchair sipping a cocktail.

And it's a dream come true to know that it's now possible to buy and sell any financial product, from anywhere in the world, simply with an Internet connection... But you have to be sure of earning enough money to support this lifestyle...

Investing money in the stock market is no easy task, and you need to know what you're doing and use the right financial products to perform well and win over time.

Getting back to basics: knowing yourself and your limits

Trading can be an emotional ordeal, and sometimes difficult to manage when you're putting your money into the stock market.

This is why we need to be as well prepared as possible to approach the financial markets with a positive and constructive attitude. The first thing to do is to answer the following questions: Why am I trading? What am I prepared to risk in order to do so? Then you need to determine your trading style according to your time horizon, your capital, your objectives, your relationship to risk, your money management, your psychology...

Psychology is an essential part of trading, and can strongly influence your performance. It is therefore essential to know yourself well, and to realize that your mind can sometimes play tricks on you in the way you approach the markets and manage your gains, but above all your losses. These psychological factors can also have harmful effects on your health...

Determining your trading profile: using financial products that suit you

There are different types of trading depending on your profile: day trading, swing trading, scalping...
Let's take scalping as an example.

This technique involves taking quick positions on a few ticks or pips, for example. The trader looks for small variations with numerous operations. But these small variations, cumulated at the end of the day, can add up to big gains.

With this type of trading, you need to invest with highly leveraged financial products. The feelings and emotions involved in intraday trading are not the same as for a trader with a longer time horizon. It's therefore essential to be prepared and know how to react in certain situations, such as when extremely high volatility causes spreads to widen. The spread is the commission your broker takes on a position you open and close: it's the difference between the buy and sell price.

THE binary options represent an ideal type of financial product for people wishing to invest over a particularly short period of time while controlling their risks - and therefore their losses. Indeed, this is a relatively simple financial product, since you have only two possible choices when you open a position: the price of the selected asset will rise, or the price of the asset will fall, according to the chosen time period. So, as soon as you open a position, you know exactly how much you stand to gain and how much you stand to lose at maturity.

You need to know the underlying asset you're investing in, to find out what could cause prices to fluctuate and thus increase volatility. If it's a currency: find out when the central bank is going to make a decision on monetary policy, for example. If it's a stock: find out when the company will publish its results. If investing in binary options is right for you, then you've understood the importance of recognizing trends in order to profit from them. There are, however, variations in types of binary call or put options we can offer you.

Make sure your broker is regulated

Be careful, however, when choosing your platform. The AMF constantly provides a list of unregulated brokers. So make sure that the intermediary you choose to trade your financial products is authorized to operate in France: consult the list of authorized investment services providers ACPR Banque de France.