The process of analyzing potential binary options trades should be two-fold, including both research of general market conditions, as well as price movement. These two forms of analysis are referred to as fundamental and technical, respectively. Although they are completed separately, the results of each should be combined in order to arrive at the best possible decisions when entering into trades. The following guide will provide the basics steps required to complete each type. [Read more…]
Now that oil has crashed 8 percent, is it really the worst that the crude industry will see in the United States? This is what many experts believe, but is it realistic to base your trading of this commodity off of this information? This is the worst selloff that crude has seen in about five months, but a barrel is still about $10 off of its six year low. While many believe that the worst is over for oil, others believe that there’s still a lot more downward pressure and that there’s a chance it will test the six year low and fall below $42. [Read more…]
Right now, the U.S. stock market is being torn by two different types of sentiment. One group of people believes that the market needs a breather and that a correction is right around the corner. The other group believes that there are stocks that will keep going up at the ultra fast pace that we’ve seen over the last couple years. There just might be enough of these people trading to help boost prices artificially for some time still. If you are able to pinpoint where these opportunities are, you can use that information to your advantage and increase your profit rate a little bit more. This type of trading approach requires a lot of research, but it will uncover areas of opportunity that not many others are cashing in on.
First, be warned that a lot of the stocks that have the biggest upside potential also have the highest amount of risk. They typically take the form of cheaper stocks; those priced at under $5 per share. Depending upon how you trade these, there may not be much of a reason for you to venture here. Some stocks have restrictions on how you may trade them. For example, it’s currently not legal to sell short penny stocks. This immediately removes half of your choices when it comes to making money. In other words, the trader that is going to be successful consistently in any market is limiting themselves if they take this approach.
Instead, you need to focus on bigger stocks. Again, you will find yourself limited, though. In order to make a profit day trading, you need to be able to front tens of thousands of dollars at a time in order to overcome any sort of variance that might occur. It is not something that the average person can do, or even wants to do. And, it is something that limits your profitability.
This is why binary options have caught on so quickly. They allow you to day trade, but with small amounts of money. They do limit your available stocks to just the biggest companies, but most traders would already be in this situation for reasons listed above. You can use all of the same evaluation strategies, but a lot of the technicalities that need to be overcome in the stock market are simplified here. It’s certainly not the same because of the trading platforms, but it’s a great starting point for smaller traders. As the industry grows, many pros are finding that they prefer binaries, even. Binaries are improving a lot, and traders are finding that they are more profitable than ever before.
The beauty of all of this is the fact that although the six year old bull market is gaining more doubters every day, there’s no need to let this hurt your trading potential because of self imposed limitations on what you can and cannot do. If you take a position on a stock, and the markets begin to drop, there may be limitations placed on selling short on a more comprehensive level, such as what happened after the 2008 financial bubble. Then, selling short was completely banned for a few months. If this were to happen in the stock market today, many traders, including hedge fund managers, would be in a rough spot. Binary options present you with an opportunity to keep these alternatives open and gives you room to make money on your own terms as they are independent of the stock market regulations for the most part. At the very least, having this as part of a backup plan opens doors that were not there before.
CherryTrade is a binary options broker based out of the United Kingdom. They are relatively new, but that has become the norm in this quickly evolving industry. Despiet being brand new, they have already shown that they can compete with the big names in binaries. Their primary focus seems to be geared toward newer traders, but this doesn’t mean that they are not able to supply the big established traders with the tools that they need for success. CherryTrade has become a top broker for a reason; let’s see what that reason is.
The first thing that you will notice about this brokerage site is the site design. It’s very sleek looking, and very attractive. This is a great thing, but doesn’t mean much as far as using the site goes. Luckily, the design is user friendly and simple to understand. This doesn’t seem like it should be a useful feature in a financial site–these are all about making money, right?–but with binaries, it is an important thing. If the site is smooth and quick to use because of a superior design, then the fast trades, like 60 second options, become a tiny bit easier to navigate successfully. This eliminates user error, and it will eventually increase the number of trades that can be made per day. Even if that’s only one extra trade per day, a winning trader will still benefit quite a bit over the long run. [Read more…]
Autotrading is a service that allows anyone to trade binary options without the need to complete any analysis or remain in front of their computer for hours on end. Once an automated system is set up and certain selections have been made, the only thing left to do is to monitor the progress and outcome of the trades which are executed, collecting any profits have been earned. The words, “collecting any profits” are key in that sentence, as not all systems produce the same results.
There exists more than one type of auto-trader. Even so, most perform the same base function of entering into trade contracts on behalf of the trader. The decisions of which trade to select, as well as the specific parameters selected, are made by the system itself. Any decisions related to investment amounts are made by the trader. Additional selections may also be made by the trader, depending on the setup of the system. This provides some means of control over the overall level of risk. [Read more…]
Headquartered in London, No1options (www.no1options.com) is a reliable and reputable binary options broker. Catering for all types of traders, No1options offers traders access to a powerful trading platform, a wide variety of global assets, a selection of advanced trading tools and much more. To ensure their traders are profitable, No1options also offers competitive payouts on successful trades as well as a variety of exclusive welcome bonuses. Added to these benefits is the broker’s Risk Free Trading program which enables a trader to trade without the risk of losing any money. No1options also provides its traders with access to an exclusive eBook series, eVideos, trading signals, one-on-one training and much more. Whether you are new to the world of binary options trading or an advanced pro, No1options has all the trading tools and features required to trade binary options effectively. [Read more…]
All who trade binary options will have access to a number of helpful strategies, techniques, methods, and indicators. Strategies often involve the processes of technical and/or fundamental analysis. On the technical side of things, it’s going to be indicators which are the ingredients that help traders identify existing price trends, after which this information can be used to forecast future price trends. Divergence is a tool that can help you with this.
At a base level, divergence reduces risk levels by allowing you to formulate more accurate predictions for your each of your trades. When used as a technical analysis tool, divergence may be used to help you narrow down any asset movement which would indicate an upcoming price reversal. Reversals are quite common, as no price can move in the same direction indefinitely. Whether you’re using it to identify price trends or reversals, any information which is going to allow for better price forecasts is going to be advantageous. [Read more…]
One of the best binary options trading strategies involves looking at major news events and forming a short term approach off of that info. It is a strategy that needs an understanding of trader psychology, and this takes some time to learn well, although for most, the basics are pretty common sense. Let’s outline a brief system for utilizing this strategy. Traders all over use this, but it is at its most effective when you use it with binary options and focus on major stocks. These are the assets most heavily impacted by news, so this is the best place for you to start.
First, pick a sector that you are familiar with. When it comes to binaries, there are many tech and energy stocks right now. Some brokers might offer major financial stocks, as well, but these are much more rare. Binaries are very limited when it comes to asset choice, and while this might seem to hinder you at first, this is a good thing for this strategy. It automatically limits your search and makes sure that you are looking at only the companies that will be the most impacted by big news. Also, remember that the stock market is huge, and this helps you so that you will not just be overwhelmed by trying to figure out where to start [Read more…]
An easy investing strategy involves looking at companies, thinking about where they will be ten years in the future, and if they feel like they will still be profitable at that point, they are a good long term buy and hold. This, however, is not how short term trading works. For the short term, the only thing that matters is movement, especially when you look at binary options. If you think that a stock will move ten cents in the next 15 minutes, a short lived trade could make you a lot of money if you risk enough.
This is why binary options are catching on so quickly. They present an opportunity to give yourself a safety net without risking anything extra. In fact, you can still make big profits and risk much less due to the high rates of return.
You can only use them with major and popular stocks, though, like Apple, Facebook, and Microsoft. [Read more…]
GOptions is a place for fast trading. They specialize in binary options, and as a broker in this field, they have become one of the world’s top names. Here, we will go over some of the reasons why this is, and how they can help you to use short term trading to profit over the long term.
If you’re new to the site, you will want to start here. They have a couple sections for beginners, mainly the FAQ and the How To Trade sections. This will walk you through how to open an account, fund it, select an underlying asset to trade, and finalize the trade. The FAQ will look at some of the most common questions you will have, and answers them in detail. And, if you’re brand new to trading in general, the dictionary will define the common terms that will become a part of your daily lexicon. [Read more…]
Reactionary trading is usually not a great recipe for success in the traditional markets. There are a few reasons for this, but first, we must correctly identify what reactionary trading is. It is executing trades after information has already been acted on. If there is data out there that the price of gold will begin to drop, reactionary trading involves selling off future contracts after prices start to drop. Data has come out, the market has begun to react, and the reactionary acts once it is clear what is happening. There will be solid gains when a great trader uses this method, but they will always be smaller than they could be.
The reactionary could be profitable if three stipulations are met. First, the reactionary must act as early as possible. They must hop on a trend as close to the beginning as they can in order to ride the profitable waves for as long as possible. Second, they must have a good and reliable method of telling when the trend will end. And third, the [Read more…]
Binary options traders crave control over their money–this is one of the big reasons why people come to binary trading to begin with. If you fit in with this camp, Grand Option (www.grandoption.com) is one of the best brokers for you. Not only do you have all of the benefits of a short term binary platform, you also get multiple features that you won’t find elsewhere. Let’s look at what makes Grand Option different, and then go over some of the basic info that you will want to have in mind before making a final decision.
What Makes them Different?
The biggest difference that you will notice right away is that Grand Option is extremely user friendly. For example, they have a feature that allows you to monitor more than one trade on a single screen. This cuts down on the hassle of switching back and forth to make sure that everything is doing what it’s supposed to be doing, and it saves you time to spend on things that will help you to generate more profits, such as researching trade. It seems small, but seconds add up and this is a big deal. [Read more…]
U.S. businesses are in a definite bull market right now, meaning that the overall trend for stocks is decidedly upward. And according to many finance professionals, this is still in the beginning stages. Since mid-2009, stocks have been creeping upward. On Monday, the S&P 500 closed above 2,000 points for the first time ever, highlighting this fact. Some experts think that this could go on for as long as another 15 years, which means that jumping into the markets now might still be a good idea, even though many indices are at record high prices. Just because they’re there now does not mean they are ready to come back down.
There are some issues with this theory, of course. Businesses are doing well, but the average American is not. There is a distinct dichotomy between these two things, and whether or not it can continue is debateable. Can businesses keep increasing in price if the average consumer cannot keep participating in the businesses themselves? [Read more…]
Winner-Option (www.winner-option.com) is a full service binary options broker based out of the EU. They are regulated by CySec and have much higher rates of return than normal brokers–especially highly regarded ones.
Where to Start
With Winner-Option, you will notice that there are many factors that make them attractive to the average trader. They have a welcome bonus of 100 percent, which is extremely nice since it instantly doubles the amount of cash that you will have available for trading. This is not a bad thing, but it shouldn’t be your first criteria for choosing a broker. You need to look at the things that will benefit you over the long term, such as high rates of return, asset choice, and exotic option and customization choices. Winner-Option has all of these things. They have an average rate of almost 84 percent per successful trade–a full five points higher than the industry average. Some trades go up to 85 percent or higher. [Read more…]
Political environments have a direct impact upon the financial markets. The effect can be more severe than others–depending upon the instance–but politics go hand in hand with the economy, and understanding this relationship can only lead you to making more money down the road.
Let’s look at a recent example so that we may see just how these two separate facets of life interact with each other. You’ve probably heard in the news about the Malaysian airline being gunned down over Ukraine. The threat of a war in this area has negatively influenced assets all throughout Europe. The European stock markets have dropped over the last week or so, and assets considered to be safer to Europeans have gotten stronger. Gold, the Japanese yen, and government bonds have all risen in popularity over this time. But because the Pro-Russian separatists have recently handed over the black box of the plane that was shot down–a signal of cooperation between different political beliefs in the area–the European stocks on Tuesday went up in rebound fashion. [Read more…]