Day trading is a great way to increase the chances of growing your account, provided that you have a good trading plan in place.

However, even if that plan is a good one, day trading for consistent profits poses a great challenge, because when you set out to buy and sell stocks (or any other instrument) for a quick gain, not only must you be accurate at predicting the direction of the movements in price, but also you must determine exactly how far is the price going to go in that direction.

Certainly, if you buy a stock intending to keep it for a couple of hours and then sell it for a profit, it will not do you much good if you buy it at $10 and then you have to sell it at $10.15, because in that scenario maybe your will not even be able to cover the commission costs.

The fact is that "guessing" the direction of the price movement can be relatively easy, because there are many patterns that usually repeat themselves, and if you can recognize them you will likely be right most of the time.

However, the tricky part is knowing how far the price will go in that direction, and this is what can really hurt your chances of day trading profitably, because if the price does not move as much as you expect, you may end up getting returns that might not even be enough to pay for commissions.

So how do you go about day trading in a way that is easier and at the same time offers the possibility of higher and more consistent returns?

Well, instead of trading stocks, currencies or commodities, trade binary options on those assets. Why?

Because binary options can deliver as much as 81% returns within one hour -in a single trade- and you will not have to pay commissions, nor you will need to have a $10,000 account to start trading profitably.

In case you are not familiar with this product, binary options -also called digital options or "all or nothing options"- are a type of option where the payout is fixed, meaning that if your contract ends up in the money, even if only by $0.001, you will be paid a fixed return (which can be anywhere around 65%-81% depending on the underlying asset).

This options expire hourly as well as daily, so you can buy call or put options and realize a 81% profit within 60 minutes of having entered the trade, which is certainly a day traders dream come true.

But the best part is that in order to achieve this return you only need to determine the direction of the price movement and NOT the magnitude of such movement, so imagine that you where thinking about buying $1,000 worth of Intel shares at $20, well:

If you would have purchased $1,000 worth of Intel shares and the price would have gone all the way to $20.70 within a couple of hours, well, you just would have made $35 minus $14 in commissions, which means about $19 in profits.

On the other hand, if you took a $100 (not a $1,000) trade on Intel binary options, and the price went up not to $20.70 but merely to $20.02, you just would have made 72% (fixed return for this instrument) which means a net profit of $72 instead of only $19, and you just did that with a 2 cent price movement in your direction.

So as you can see, binary options are far simpler and definitely a more profitable way of day trading, because you can actually make more money with intraday trades by risking a less and without having to predict how far the the price will go, as just having a good idea of its direction will do the trick.

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