Broker Blog

7 05, 2016

Apple’s Positive Sentiment Drops Sharply

May 7th, 2016|Markets|

Apple’s (AAPL) stock price has been moving downward for about a year now, coming off of a high of over $130, down to under $100. And although the stock has moved up over $105 at this moment, there’s not a very strong hold on this price, and investors are quickly losing confidence in Apple’s current price, even if it is already much lower than it has been. There are a number of factors pushing Apple’s price down, and these things don’t look like they will be changing soon. For one, Apple is currently in the midst of losing its grip on a huge marketplace in China. Thanks to current regulations, Apple has suspended its iTunes Movies and iBooks stores there, which is likely to lose the company millions of dollars. There are also issues with the new iPhone’s production. Basically, the biggest problem for Apple is that both customers and investors are losing enthusiasm, and that will only lead to more losses for the company in the coming months. When they announce earnings next week, we can get a better assessment on how much damage has been done, but until then, sentiment is markedly against Apple. That means future price drops in its stock are likely. […]

2 05, 2016

Using Analysts to Our Advantage

May 2nd, 2016|Strategies|

One of the primary duties of a Wall Street analyst is to figure out exactly what a company is worth. Then, if the total number of shares outstanding multiplied by the share price is lower than the actual value of the company, then buying the stock is the correct move. When the price goes above a level that the company is worth, then it’s time to sell the stock. This is the (very) basic reasoning behind how decisions on buying and selling are made, and knowing this is a great way to give yourself an edge in your own short term trading, regardless of whether you are trading in the traditional stock market, using binary options, or some other method. […]

18 04, 2016

Crude has a Big Day

April 18th, 2016|Markets, Strategies|

Oil recently jumped up by 6 percent, surprising a lot of traders that focus on commodities. Crude rose by $2.29 per barrel—6.15 percent—up to $39.55 per barrel on Friday, April 8th. There were a few major factors that contributed to the rise in prices, including the U.S. Federal Reserve’s comments on the economy, U.S. oil production, and an OPEC deal that seems to be limiting production by some of the major players in the oil production world, such as Saudi Arabia and Kuwait. The U.S. has cut its oil supply by 5 million barrels recently, which went well against analyst thoughts that there would be a build of over 3 million barrels. With less supply, prices can go up because of increased tension with demand. […]

5 04, 2016

Traditional Stock Options Shed Light on Binaries

April 5th, 2016|Markets|

When it comes to stock options, volume isn’t always a good thing. In fact, last week, of the five most active stocks when it came to options being exercised, three of the five moved downward. The smallest of these movers was by a loss of more than 9 percent. That was for the pharmaceutical company, Pfizer. The two other companies in the top five that lost value both dropped by more than 30 percent. Of the two assets that gained value, only one was a major company: Cisco. Cisco gained about 5 percent. The importance of looking at executed options when you begin your trading day is that options reveal what traders were thinking in the past. If an option is executed at a gain, that means that the company has increased in value. Remember, traditional options do not carry with them the necessity of being executed as binary options or futures do. […]

29 03, 2016

Oil Prices in Ten Years

March 29th, 2016|Markets|

Crude oil is still at the heart of economic turbulence in the U.S. and the rest of the world. And despite the fact that OPEC countries seem to be coming to terms with the struggles that they are facing, and causing, in some cases, not everything is what it seems to be. To get a better understanding of the potential in this economic warfare, looking at the politics and the economic impact behind everything is a must. First, let’s start out with what’s happening in the United States. The U.S. does produce oil, and they do have reserves, but because of increased consumption, the domestic oil production is not keeping up with demand. This means that reserves are being depleted, and that means that there is a possibility that the U.S. could run out of oil. It’s not likely, but if things do not change when it comes to consumption in the coming years, it could happen. This would once again give OPEC nations the upper hand, and their ability to manipulate prices would once again drive the price of crude up. […]

15 03, 2016

A Long Term Guide to Your Trading

March 15th, 2016|Markets|

It’s probably not a surprise to you that your finance goals should change as you get older. A 20 something should be allocating their investing money in a very different manner than a 50 something should be. With this in mind, how does your short term trading play into your overall finance goals? This is a great question, and it’s something that all traders should be considering. There is a lot to gain from trading, but if it’s not approached correctly, then you could be setting yourself up for failure—which defeats the point of trading in the first place. As a general rule, the younger you are, the more risk you can afford to take. This is the method that the best money managers in the world use, and therefore, you should be attempting to duplicate the strategy, too. The closer to retirement you are, the less risk you can afford to take. This mindset should be kept in mind as you start thinking about your overall trading strategy. […]

2 03, 2016

Focusing on Goals

March 2nd, 2016|Psychology, Strategies|

Every trader has different needs, and knowing yours can help you to become a better trader. The first thing you should do as you start out the year trading is to pinpoint what those goals are and move them into your long term strategy. Every trader, even the ones with the shortest term focuses, should have long term goals, and if you don’t, perhaps this should be where you start. By identifying performance goals, you can ensure that you will be one step closer to achieving favorable results. Looking at certain benchmarks can be a good start, but don’t be too concerned with how your portfolio performs against major indices like the Dow Jones Industrial Average or the S&P 500. […]

24 02, 2016

Using Unpredictability to Your Advantage

February 24th, 2016|Strategies|

When markets turn downward for a prolonged period of time, it is easy to believe that a bear market is in the works. That is the impression that many traders and investors have right now thanks to what is happening within the U.S. economy. The threat of a bear market is often enough to drive prices down even further as investor unload positions that will be weighing them down over the coming months as the market struggles to right itself. However, anyone with experience can tell you that bear markets are only really identifiable in hindsight. According to the generally agreed upon definition, a bear market occurs when general indices have dropped by 20 percent or more and stay that way for at least two months. That is considered the entry point to the bear market. And regardless of everything that has happened in the last several weeks, the U.S. economy is not quite to this point yet. […]

10 02, 2016

How to Use Short Interest

February 10th, 2016|Markets, Strategies|

Momentum and trend are two of the most useful tools that a binary options trader can use, and that means that short term traders of all sorts should be evaluating these concepts before each trade that they make. One simple way to figure this out with stocks is to look at the short percentage that has been taken out. If there is a large amount of short positions taken out, this indicates that large hedge funds have started moving against that company, and even if that company doesn’t have weak technical, it could move momentum downward, and this could reverse the trend of the stock’s price so that the stock starts dropping more steadily. […]

20 01, 2016

The U.S. Inflation “Problem”

January 20th, 2016|Markets|

Inflation hasn’t really been a huge issue over the last several years in the United States. The dollar, although becoming stronger in other countries, hasn’t really changed much in the United States, and many investors are taking notice of this. This is especially poignant for retirees that have been told for years that they need to account for inflation. The payoff has been that their dollar is holding its value far better than what was expected. This might not continue, though. Starting in the late 80s, though, every time that the unemployment rate has hit a bottom, the inflation rate has skyrocketed. Inflation is a legitimate issue as it decreases the buying power of the dollar. […]