No Risk Binary Option Trading Canada

Written by Canada Forex Portal
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Binary Options for Canadians is possible without risking any of your own capital
What if taking risk would only be comprised of taking controlled risk? What if you'd be able to enjoy the thrill and excitement of trading binary options without worrying about losing your entire capital?

Dave Barry has described risk taking beautifully, he's perspective certainly encourages us to believe that taking risk yields remarkable results. Having that said, there is another alternative to extravagant risk taking, in fact 2 alternatives – the passive and aggressive investment strategies.

Evidently, both strategies won't help you build Noa's ark, however they can in fact lower your investment's risk while maintaining high profits when trading binary options. How? It all has to do with specialized risk management.

Risk Management

Attaining extraordinary results in binary options trading doesn't solely depend on how brave you are, but how wittily you control and devise your bravery. Proper risk management, involving the distribution of your investment, will lead you to endure smaller losses wile aiming for larger profits.

In the past, I used to randomly invest in trades, only taking into consideration the odds of gaining profit while completely ignoring the risk I place my entire portfolio in. My irrational behavior has earned me some wins, although the closing calculations showed that my decision making was poor and unprofitable. And by unprofitable I'm talking about a loss of nearly $5,000 – that unprofitable!

The change, as you can imagine, has arrived to a super heart welcoming. After seriously probing the Net for appropriate solution to my uncontrolled risk management, I eventually encountered two remarkable strategies with which you can fully command your trading capital with – the passive and aggressive rules of risk management.
The Passive (5/15) and Aggressive (10/30) Rules of Risk Management
Fundamentally, the passive and aggressive rules are similar and only differentiate from one another in their distribution levels. I personally prefer applying the passive strategy (due to my previously foolish investments, cutbacks were inevitable); it primarily focuses on preserving your capital and at the same time generating profit.

The Passive (5/15) Rule

Despite the essentiality of the strategy, it is fairly simple to understand and implement. The numbers you 5/15 define the distribution method of your investment, or more accurately: the limited amount of investment you're allowed to invest per trade. Following the rules of the passive approach means that you're only allowed to invest 5% in 1 trade and no more than 15% investment of your entire portfolio in 3 different trades.

For example, last week I received some interesting and beneficial market analysis on Gold, Oil and Fiat which lead me to believe that I can profit from these 3 underlying assets. At that time I had a total of $1,000 in my entire portfolio.

Now, since I've already began applying the passive strategy and I was interested in trading on all of the 3 assets, I could only invest $50 (5% of my entire portfolio) on each asset. Ultimately, I invested a total of $150 which equals 15% of my entire portfolio.

To be honest, I didn't win it all, however I did win some and did protect myself from further loss. My predictions concerning the price direction of gold were incorrect, while the oil and fiat assets have indeed turned profitable, compensating the loss I suffered from the gold investment, and supplementing my entire portfolio with a clean profit of $85.

The Aggressive 10/30 Rule

Alike the passive rule, the aggressive rule of risk management helps preserve your funds from getting thrown away and at the same time enables you to earn larger profits, i.e., for the sake of a bit more risk, you're empowered to make more profit.

Your maximum allowed investment fee per trade, according to the aggressive rule, stands on 10% with a maximum of 30% of your entire portfolio. This rule grants you with greater investment maneuver ability and is intended for investors with larger accounts.

Recommendations for Applying the Passive and Aggressive Rules

Trading binary options is as risky as crossing a road; the odds are that you will reach the other end, though it's all a questions of how carefully you approach the challenge. Binary investors can either run across the road, endure more risk of getting hit by a car (lose their investment), yet reach the other end faster (make greater profit) - just like the aggressive rule.

Alternatively, you can cross the road slowly and carefully (stable investment with low risk) and reach your goal securely and profitably, just like the passive rule leads you to. In the end, you have to decide which of the two rules is more suitable for you; either way, they'll both keep your losses low and profit potential high.

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