Candlesticks Terms
Ever since they were discovered, Japanese candlesticks have become somewhat of a standard in chart analysis. The candlesticks display the same information as a traditional bar chart but in a simpler, more appealing and graphic manner that i...Read More...
Pair Trading
Pair trading is a market neutral strategy that enables a trader to profit from virtually any market condition – both trending and non-trending. This strategy involves the simultaneous matching of a long position with a short position in a...Read More...
Forex Breakout Strategy
To succeed in binary options trading, traders tend to utilize a variety of strategies in order to maximize the chances of their trades ending in the money. One of the strategies used is the Forex breakout strategy. This strategy, as the nam...Read More...
Average True Range Indicator
The average true range indicator (ATR) is a technical analysis tool that measures volatility. It displays the degree of volatility an asset possesses, and does not indicate the trend. The price range of an asset will simply be the differenc...Read More...
Common Binary Options Complaints
Binary options trading cannot be described as a perfect trading safe haven. Some brokers are often accused of scamming unknowing users or if correctly put, of enticing new traders and later swindling them of their investments. Most of these...Read More...
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October 23, 2014 admin
Candlesticks TermsEver since they were discovered, Japanese candlesticks have become somewhat of a standard in chart analysis. The candlesticks display the same information as a traditional bar chart but in a simpler, more appealing and graphic manner that is easily interpreted by a trader. Like traditional bar charts, Japanese candles are formed using the high, open, close and low prices of an asset within a specified time period. A typical candlestick will have a real body as well as shadows. The real body will be white or black depending on the open and close of the price. If the close price is higher than the opening price, then the real body will be white, and if the close price is lower than the opening price, the real body will be black. The shadows show where the price reached during a particular time period (the high and the low) [caption id="attachment_8061" align="aligncenter" width="300"] the high and the low[/caption]   As seen above, candlesticks are graphically appealing and they can be easily interpreted. Here are some of the common terms with regards to Japanese candlesticks: Spinning Tops These types of candlesticks have long upper shadows, long lower shadows but...
October 22, 2014 admin
Pair TradingPair trading is a market neutral strategy that enables a trader to profit from virtually any market condition – both trending and non-trending. This strategy involves the simultaneous matching of a long position with a short position in a pair of highly correlated instruments such as two stocks, currencies or commodities. Pair traders monitor the price performance of two historically correlated instruments. When the correlation between the two instruments temporarily weakens - one moves up while the other moves down - a trader shorts the outperforming asset and goes long on the underperforming one, betting that the "spread" between the two would converge over time. In pair trading, profit is realized from the difference in price change between the two instruments, rather than from the direction in which each asset moves. Hence, a profit can be achieved if the long position goes up more than the short, or the short position goes down more than the long. How to Find Pair Trading Candidates? • The first step is to identify a pair of instruments whose prices have the propensity to move together with good liquidity. Most binary options brokers offer a variety of pairs to trade i...
October 21, 2014 admin
Forex Breakout StrategyTo succeed in binary options trading, traders tend to utilize a variety of strategies in order to maximize the chances of their trades ending in the money. One of the strategies used is the Forex breakout strategy. This strategy, as the name suggests, is mainly used with Forex options or currency pairs. The Forex breakout strategy usually takes advantages of price breakouts in Forex markets and these price breakouts can be defined as market conditions that result from price action. The price action can either drop below the support level or rise above the given resistance level. To exploit such situations, a trader will need to be well versed in the successful implementation of this strategy to ensure that their trades end successfully and profitably. The Forex Breakout Strategy - How it Works Most forex traders tend to prefer this strategy due to its simplicity of use and effectiveness. Firstly, a trader has to choose the price they would wish to start trading at. That is, they need to select the strike price of the asset. This can either be done manually or by using a trading system and entry orders. The trades are only executable when the price selected becomes available. Fo...
October 20, 2014 admin
Average True Range IndicatorThe average true range indicator (ATR) is a technical analysis tool that measures volatility. It displays the degree of volatility an asset possesses, and does not indicate the trend. The price range of an asset will simply be the difference between its high and low during a particular trading session. A true range, on the other hand, also includes the previous trading session in order to assess whether the previous closing price was within the current range. The ATR indicator provides average true range values of a particular asset, which can give a comprehensive picture of a particular asset’s volatility. Traders use ATR to determine position sizing, placing stops and profit targets as well as anticipating price breakouts. Position sizing Position sizing is a critical factor that can determine the success of a trader. For a trader, it is very important to apply the correct position size for any particular asset you trade. Assets that have high volatility should be traded with low position sizes because of their erratic price movements. An example of an asset with high volatility is Gold. The choppy price movements of such assets can result in huge losses to a trader if the...
October 19, 2014 admin
Common Binary Options ComplaintsBinary options trading cannot be described as a perfect trading safe haven. Some brokers are often accused of scamming unknowing users or if correctly put, of enticing new traders and later swindling them of their investments. Most of these scam brokers tend to offer mouth watering bonuses on sign up which are simply irresistible. The most common complaints leveled against binary options trading are as described below. Scam Brokers Most of the complaints around binary options submitted via online platforms and print media are usually as a result of scam brokers. Some traders have even reported total loss of their investment capital whereas some have reported only partial losses as a result of scam brokers. Scam brokers tend to create trading platforms with a very short life span. After the end of the stipulated operational time frame, the broker pulls down the website, resulting in losses amounting to hundreds of thousands of dollars. Unsuspecting investors are subject to total loss in case a broker winds up their trading activities with an intention to steal the investments. It is always advisable to first check a trading platform’s lifespan and legitimacy before signing up ...
October 17, 2014 admin
LogoInformation is power, especially when it comes to dealing in financial investments like stocks and commodities. One of the best sources for financial news and market information online is Yahoo! Finance. While Yahoo! has struggled to hold on to its market share in the search engine business, its pioneering financial news section has remained the leader in providing solid financial market information and advice. Yahoo! Finance gives binary options traders all the tools they need to keep a close eye on the performance of various stocks and on the market in general by providing news, stories, analysis and real time performance updates. Yahoo! Finance Interface Yahoo! Finance is widely regarded as having one of the slickest and most user-friendly interfaces of all financial information websites available. The home page is dominated by global business news from both Yahoo! and well-respected syndicated sources such as Reuters, the Associated Press, Business Insider, Business Week and Bloomberg. There are also market feeds from the US, Europe and Asia; a portfolio manager and trend tickers for stocks, currencies, indices and commodities. Users can customize their feeds by adding the ...
October 12, 2014 admin
financial-tradingAlgorithmic or automated (auto) binary options trading, also called robotic trading, makes use of specially designed software that electronically reads market charts and graphs, assimilating the necessary information and making forecasts for binary options trading. This system theoretically allows you, the trader, to sit back while the auto trader robot does all the work. The practical application of the software used in binary options trading is, however not quite that easy. Empowering the Algorithm Robot Before allowing the robot to do your trades, you have to input all the parameters you would normally use when trading in binary options. This is all very well for the experienced or professional binary option traders, because they would typically have a tried and tested set of parameters that they apply to their trading activities and these are then loaded onto the robot. The big advantage with this is that a lot of time is saved in studying charts and graphs before deciding on trades; the robot does it all for you and can even place the trade automatically if instructed accordingly. The one drawback to this is that the algorithm does not take current political or economic ...
October 10, 2014 admin
Financial ConceptsBinary options trading is one of the easiest and the most profitable ventures. This is because a trader simply bets on the direction that the price of an asset will move, either up or down, rather than buying the asset in question. Technically, anyone can participate in binary options trading but knowledge of the concepts used in this type of trading is a must in order to enhance trading success. As you explore this trading industry, you will come across a variety of financial concepts so let us look at some of the main ones. Important Financial Concepts The main concepts used in binary options trading include: Expiry time -This is the time at which a trading contract is set to expire. Expiry times usually vary with the asset being traded and a trader’s preference and can be as short as 30 seconds right up to one year. Stock - This refers to a specific company’s stock which is available for trade on the stock markets and the binary options trading platforms. Examples include Google, Facebook, etc. Type of asset -This refers to which trading category an asset falls into. The most common types of assets available with most brokers are Indices, commodities, currencies a...
October 07, 2014 admin
binary options TrendOne of the most important lessons we learn as a trader is to always “trade with the trend.” This is sage advice as long as the trend remains strong. So how can you tell when a trend is strong, and when it is about to end? While it is highly profitable to trade in the direction of the major trend, if that same trend shows signs of weakening, then the probability of logging a winning trade drops drastically. How to Determine the Strength of a Trend A simple visual technique to determine the strength of a trend on any time-frame chart is to watch out for the intensity of price pullbacks. In case of a strong trend, a pullback would typically be smaller than the dominant trending wave that preceded it. During an uptrend, if a strong up move is followed by price retracement which is shorter in length than the prior up wave, then the trend is healthy and likely to continue for a while. In the chart below, after a protracted rise, price retraces, but only for a short distance, indicating that the upside momentum is still intact. As long as you see price action similar to the one below, keep trading the “long” signals because the odds are still in your favour. For a trend t...
October 06, 2014 admin
Weekend-optionsSome investors only trade binary options on the weekdays. These investors tend to look at weekends as their spare time. Others indulge in weekend trading and add additional profits to their portfolios. How is Weekend Trading Possible? Newbie traders may be asking the question "how it is even possible to trade in the weekend?". After all, markets are only open on weekdays, right? Wrong. Many markets are open for weekend trading. A few examples of these markets are listed below. - Some Middle Eastern markets open from Sunday to Thursday. - The FOREX market opens from Sunday to Friday. Generally speaking, the markets that are open on weekends are often located overseas. Traders based in the United States can make time zones work to their advantage. Another advantage to trading on foreign markets is that there is greater volatility. This helps traders make bigger profits. Why Should Traders Buy and Sell Binary Options on the Weekend? The biggest benefit of trading on the weekend is that traders are able to make money whilst most of the bigger financial markets are shut. Investors who trade binary options on the weekends are not limited to whichever market they use on the we...
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