Hi, in today’s article you are going to find out why I Keith Rainz stopped trading forex (currencies) and started trading synthetic indices also known as volatility indices such as Boom 1000 and V75.
But before I give you my reasons, in case you do not know what these synthetic indices are, let me explain them to you. These are synthetic indices from deriv broker also known as binary.com. Their synthetic indices are created using a cryptographically secure random number generator that has been independently audited for fairness. Natural events and disruptions have no effect on these indices, which are designed to simulate real-world market movement. Synthetic indices are available 24 hours a day, seven days a week, have fixed generation intervals, and are free of market and liquidity risks.
So what makes these synthetic special? or why did I stop trading currencies and started trading indices?
1 With forex, you can only trade in 5 days a week, but when it comes to these indices, you can trade 24/7, 7 days a week. This makes it good if you are a busy person during the week. You can make use of saturday and sunday to trade. So here indices win.
2 Synthetic indices have tight spreads as compared to currencies.
3 Since synthetic indices are not currencies, therefore, they are Free from real-world market and liquidity risks as compared to forex. Indices win here again.
4 Volatility indices are very volatile as compared to currencies. With indices, the price fluctuates a lot as compared to currencies. This is good for some traders and also bad for some traders.
5 Synthetic indices have four innovative trade types namely:
Volatility indices, Crash/Boom, Jump indices and Step indices as compared to currencies of which it only has one trade type
6 With synthetic indices, you only need technical analysis as compared to forex trading where you have to use both technical analysis and fundamental analysis. So if you are good at candle stick patterns or you have a good indicator, you can make consistent profits with technical analysis only because indices are not affected by natural events and disruptions and effects and are free of market and liquidity risks.
7 In my experience, I have found that it is easy to make money fast with these indices. With the smallest lot size of 0.20 with equity of $100, it is possible to make $20 per spike or drop or line or candlestick. But when it comes to forex, you need a lot of pips to make this amount of money. This also means that it is possible to lose all your money with few pips. As for me, I find this to be a good thing, atleast am able to double an amount within hours. Consider watching this video.
8 it is easy to scalp these indices as compared to currencies
9.If you are a busy person and you would like to make some profits by spending little time looking at charts, then these indices are for you.
10 The last advantage of trading these indices is that they have 4 trading types, so you can choose one and become good at it.