How to Manage Risk

Managing risk is a huge subject, and it is impossible to cover completely in a single blog, or even a hundred blogs. But even if we look at it on a limited basis, risk is important to address. It impacts everything you do when you’re trading, and if you know what to expect, you have [...]

February 27th, 2017|Strategies|

Retracement Price Action

The retracement price action trading strategy relies on technical analysis, and has proven to be very helpful when trading currency pairs. It also works very well as a binary options strategy. You can also use it with other types of assets, but not always with the same success. If you’re going to use this trading strategy, be sure that you know how to use it and what to look out for. Application of Price Action In order to use this strategy, you will need to have an active graph or chart going for the asset in question, preferably a candlestick chart as this will help reveal the most amount of information to you in the smallest amount of space. […]

December 28th, 2016|Strategies|

Technical Info on Trading the Trend

Trading the trend is by far the most popular binary options strategy out there, and for a very good reason. When you are trading with a trend, you have a slightly higher chance of a successful trade, especially when executing short term trades. Binary options can already have a thin margin of error, and giving yourself even a 1 percent better chance of being successful can be the difference for some between losing a lot of money and being profitable. Hopefully, you are already a very successful trader. Even so, this little tutorial will prove to help you boost your profits when applied correctly. Knowing exactly when to enter a trade even when you are going with the trend is a little bit trickier than it seems. Anyone with some experience can tell you that no matter what the trend says, you will still be wrong once in a while. That’s just part of the oscillating nature of markets, and when there is a definite expiration point placed on your trades, like what we see in binary options, then you are creating a scenario where you could be wrong, regardless of what the trend says. […]

November 29th, 2016|Strategies|

Trend Following EMA

Exponential moving averages are often used as the starting point for trend following systems, and when it comes to trading binary options, following the trend will be your best course of action more often than not. Using a broad reaching EMA isn’t enough, though. Here, we will show you how to look at EMA, and [...]

June 27th, 2016|Strategies|

Short Term Trading for a Long Term Goal

General investing wisdom states that short term events and fluctuations in the market do not impact your long term goals. This is commonsense, but it shouldn’t be a deterrent from your short term trading. We all have long term goals, whether they are to save enough for retirement, or to put a kid through college, or even to save up to buy a luxury property. These are big goals, and those that focus just on long term investing will tell you that the best way to achieve them is to set aside money every week or every month and use compound interest to your advantage. Through dollar cost averaging, the ups and downs in the market will be evened out and the power of inflation will go to work for you, growing your money slowly so that your long term goals will eventually become a reality. […]

May 24th, 2016|Strategies|

Using Analysts to Our Advantage

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. […]

May 2nd, 2016|Strategies|

Crude has a Big Day

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. […]

April 18th, 2016|Markets, Strategies|

Focusing on Goals

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. […]

March 2nd, 2016|Psychology, Strategies|

Using Unpredictability to Your Advantage

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. […]

February 24th, 2016|Strategies|

How to Use Short Interest

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. […]

February 10th, 2016|Markets, Strategies|