Myth # 2. Trading on OTC is not worth a risk
The majority of senior traders prefer not to stop trading and earning on holidays and weekends as well as during hours when the activity of the global financial market is suspended. Many users also combine trading with the main profession and are physically unable to trade during market activity on weekdays.
What should you do in this case? — Keep on trading on OTC, of course. Let’s review a few tips of successful trading at any time using OTC-contracts and making a profit 24/7.
What is OTC?
OTC (over-the-counter) trading is done directly between two parties, without the supervision of an exchange. It is contrasted with exchange trading, which occurs via exchanges. OTC trading occurs with currencies, commodities, financial instruments (including stocks), and derivatives of such products. OTC contracts are attended by international banks, international companies as well as liquidity providers (market makers). In 2008 approximately 16 percent of all U.S. stock trades were “off-exchange trading”; by April 2014 that number increased to about 40 percent. Today, approximately 2/3 of the total turnover of stocks goes through over-the-counter circulation.
OTC trading on Pocket Option
Pocket Option platform implements an innovative approach for uninterrupted trading any time of the day. General trading assets are available in accordance with the existing asset schedule https://pocketoption.com/en/assets, contrarily, OTC assets the rest of the time.
In cases when for some reason it is not possible to provide General assets to customers, OTC assets are automatically activated, thus providing a non-stop trading experience.
Why do some traders avoid OTC?
Despite of the obvious facts, some traders have a deep-rooted stereotype about the unpredictability of OTC asset price movements. This position is also actively broadcast by ignorant traders among beginners in the form of rumors and horror stories. There is no evidence of impossibility to trade successfully on OTC markets. The rules of technical analysis and money management are similarly applicable with minor adjustments for the type of asset being traded as well as the historical period of the price change. It is also necessary to take into account that the price movement does not depend on the movement of the general market price for a given asset; accordingly, making forecasts based on the exchange market is irrational. Instead, you should pay attention to historical data, analyze charts for the location of the strong trends, patterns, work with power levels, etc.
Conclusion
Do not fall prey to other people’s prejudices and misunderstanding of the basic principles of trade. Try and learn to make money on any asset available. Use a demo account for training and choosing the best trading strategy. After all, what could be better than the opportunity to earn while the rest are messing around?!
