September 21, 2016
Experience is an important ingredient to success in any kind of investment trading. However, it is not the only thing that will enable you to trade successfully. Even if you have never trading in any financial market before, you will be able to quickly understand what is involved in this type of trading and start making successful trades. In essence all you need to do is calculate whether the price of an item will go up or down. Some of the best traders use the simplest strategies for binary options trading and have excellent results.
Long Term Investing
The most important part of binary trading is to learn which of the available strategies best meets your needs and risk tolerance. Once you have established this you will be able to refine and improve your technique and obtain consistent, favorable results. When first starting in this industry it is best to stick to an area you already know something about and to stick to one asset type:
Trading with the Trend
One of the most straightforward approaches is to look at a price chart and see which direction the price is current moving in. If the general trend is up then place a call option, if down go with a put. Most traders place a trend line alongside the chart; from this you should be able to pick a price that the asset will not reach and utilize the no touch trade strategy.
When the market is particularly volatile you may be expecting some rapid rises and falls in price. This chart will highlight when these events are likely to happen and allow you to trade accordingly. Alongside the usual price movement trades you can opt for a one touch trade where the asset drops (or rises) significantly and hits your expected price. This is higher risk but can be lucrative.
Sitting on the Fence
This is also known as straddling and is another good technique for a volatile market. Instead of trying to decode which direction a market is likely to move in you place two trades; one for it to go up and one for it to go down. The profit on either of these trades should cover the costs of both trades and generate a small profit. You are effectively decreasing your risk.
This is very similar to the straddling technique. However, with this strategy you need to place both trades, up and down, at the same time. You are guaranteed to get one of the trades right, but unlike the straddling technique you do not have a chance of getting both right.
This technique is very similar to the reversed risk approach, and serves to protect your funds and reduce risk whilst still generating a small profit.
An important strategy which should never be overlooked and works well in conjunction with any other technique is the analysis of the general economy and the specific situation of your chosen company. You will then be able to assess what the price is likely to do on the strength of the company and the economy.
We also suggest you to check 15 minute binary options strategy in order to rise the profitability of your trading.
Tags: Best Forex Trade
, Foreign Exchange
February 16, 2016
It may surprise many to know that nearly eighty percent people who go for forex trading burn their fingers badly before deciding to quit trading of forex currencies. So, you’ll need to be extremely careful when trading forex, lest you should also fall in the category of those who failed. The causes of failure are many, though some of those are common among those who failed. Despite this abnormally high failure rate, forex trading presents the opportunity of making considerable sums of money. Nevertheless, it is quite challenging to become successful trader. It demands plenty of hard work, dedication and appropriate learning. Some traders at XFR Financial fail to devote the required amount of time and the type of hard work it necessarily requires for being successful. Forex trading is not the way of making money for you if you aren’t willing to invest the time and hard work it entails.
Essential Qualities of any successful trader
Here, hard work implies studying and learning various aspects of trading for being a successful trader at XFR Financial. You can’t take this type of trading as a hobby. Consider this like any other professional job that needs to be taken seriously. It should be pointed out here that during the early stages you should aim at learning the tricks of trade and not at making money easily and quickly. You should know it is a very volatile market. So, instead of experimenting and killing time, you need to understand its fundamentals and gain confidence before entering this market. Make sure to draw your plan and stick to that. You are most likely to become successful in due course of time provided you continue to consistently put in hard work.
Money Management through XFR Financial
The two most important things that you have to learn include managing your funds and emotions. One of the most important factors causing most traders to fail is lack of control over emotions like greed and fear. Often, after having suffered financial loss in the market, traders start believing that they have the capability of making the market reimburse the loss they suffered. This type of approach frequently causes them further losses and they fail miserably. Managing your funds or remaining financially disciplined is another essential feature for becoming a successful forex trader and you’ll find XFR Financial helpful in this regard.
Financial discipline simply means setting firm limits for your trades as per the volume of finances available with you. The plan should be to gain money without undue exposure to risks. This limit for good traders is up to two percent, though a number of traders stretch it up to 10% of their finances. You should understand that a significant advantage of exercising financial discipline is that you are always left with some money for trading the next day or in future because you don’t lose all that money in making a few trades on the same day.
If you take care to follow the above mentioned steps given by XFR Financial, you are most likely to succeed in your efforts of making decent amount of money through forex trading. You should understand that it takes time to become successful. You would know there are no short cuts to become successful in any profession and forex trading is no exception. You should continue to be disciplined at all times and don’t try escaping hard work if you like to be a successful trader by making considerable gains through this form of trading.
, Currency Trading
, Foreign Exchange
January 5, 2016
Clued up Brokers
Because of the changing nature of our world, also the way we do business, new innovations are necessary to show us the way we trade stocks, forex, commodities and bonds. Using trading platforms, which are computer software programs used by traders and brokers, investors no longer have to place telephonic orders; these days web-based and mobile trading platforms allow the trader to place his orders with the broker.
It goes without saying that you want a trading platform that provides real-time data from the markets you trade in, a trading platform that connects you to your broker instantly. Check with him/her that the trading platform he/she offers, is compatible with your computer/mobile system. Many brokers today understand the need to inform their clients about the best mobile apps for trading, apps that employ advanced trading tools to make the traders’ experience so much easier and up to the minute.
Online trading is becoming more and more popular as technology advances and can be used with great ease for any form of trading and from anywhere in the world. When you deal with a reputable broker, he/she will offer you a trading platform either for free or at a discount, provided you keep a funded account with him or her, an account which requires of you to execute a specific number of transactions every month.
Always compare what is available in the market. Be sure you get the best trading platform for your needs by talking to experienced professionals such as CMC Markets .
Ask yourself the following important questions:
If, for instance, your preferred trading is in forex, the platform must allow you every detail relating to issues such as real-time as well as historical data. The trader wants to have all information at his fingertips when he places his order with his broker.
It all really boils down to comparison, finding the broker that offers you the most reasonable, advanced platform to trade. You want to deal with a broker that has his/her fingers on all the pulses. Also when it comes to innovation, someone who will let you trade from anywhere, at any time, from whatever device you are using.
, Foreign Exchange
January 2, 2016
Charting is very important in any form of trading in the financial market. It ensures that trade is carried out analytically. Charting technique is also used in Binary options’ trading. Anyone who wants to trade forex and make a good sum of money must make use of charting techniques. Thus, a decent knowledge of charting techniques is very essential if you must succeed as a forex trader. Trading binary options can serve as your sole means of income and employment and yield enough for your sustenance if you know how to make use of charting techniques.
For you to be able to chart in binary option, you must have thorough knowledge of charting technique. This article talks about candle stick charting technique and how you can use your knowledge of candle charting techniques to trade profitably.
What are Candle stick charts?
Candlestick chart are made up of collection of candle sticks. Every one of the candlesticks stands for a price action for a particular time period as shown in the example below. Our example illustrates the daily price action for EUR/USD currency pairs for 10 days trading time period.
Candlestick chart colours
Each candle stick of the candlestick chart is colored. The color depends on whether there is a rise or fall in price action between its opening or closing time. The widespread color used for a rise in price also known as the bullish (up) candles is the green color while the most frequently used color for a fall in price also known as a bearish (down) candles are the black and red colors.
The coloring system makes it easier to see in an instance if there is rise or fall in price action on any particular day. It also lets us know the degree of rise or fall of the price action for ach particular day. Apart from providing this information, the candlestick chart also offers the trader a few more aid to successful trading.
The candle stick tells the trader the open price; the high and low price and the close price also known as the (OHLC) for each specific time period. This varies a bit. It depends on if the candle is bullish (up) or Bearish (Down)
Why Candle Stick chart is very effective
The candlestick chart provides more information than the basic chart. It is made up of nodes which indicate either the opening time or the closing time of a unit. It can as well tell the trader if the time period is positive or negative. Red color on the candle chart shows negative while green color on the other hand indicates positive time period. Candle stick charting is an excellent and highly effective binary options trading technique.
To be successful in binary option trading with candle stick chart, you need to understand that the Binary options trading with candle stick method is completely different to trading with other trading options like the Forex or commodity market or stock market trading.
Candlestick Charting gives you a good start
Binary option trading is very good but unless you make good predictions, you won’t be able to make money with binary option. This is exactly what the candle stick chart will do for you. The candlestick charting is a good help to traders both those who are new in binary trading and experienced traders. It can help experienced traders to make a fresh start. It thus helps you to make use of the modern charting technique for trading. Candle stick charting as well possess a number of the best tools of technical analysis. With candlestick charting you can also make use of a few mathematical tools like the moving averages or stochastic.
Candlestick Charting is a stepping stone for successful trading
Take your time to learn and understand chart candlestick patterns. It is the most helpful analysis. It offers a trader some secrets to successful trading like a multiple indicator system, a price indicator system for supply and demand, a successful trading skill in addition to a system that evens out a risk.
A good number of the trading signals obtained by these systems have been established to be roughly 80% to 100% precise and correct. It is not all trading platform that has the software used in candlestick analysis. Thus, you can decide to choose charting software that can be used to track the unit you are trading on.
Why software is essential in binary Option trading
Trading binary option does not require buying and selling. A good number of traders of Binary option are of the opinion that binary option trading is much more different from trading from other platforms. The one most significant part of binary option trading is the trader’s ability to predict price movement of a specific equity. The use of software in trading comes in handy here. It assists the trader to make predictions of price actions.
, Foreign Exchange
October 13, 2015
Take a seat
The stock market can be a confusing place for a newbie. While it’s true that you learn as you go along, you need to come into trading having some basic knowledge of how the market runs and how to play it. At the very least, you should be able to define some common terms so that your investment portfolio manager doesn’t have to speak in a certain way to you…if you get what I mean.
So this is a simple guide into first time investing with all the fancy terminology and great tips. You certainly won’t become a billionaire by sticking to this simple guide but you certainly won’t lose your hard-earned money, and that’s a pretty good deal, right?
Stocks and funds are not the same thing. A stock is a share in a company that you can buy, hold and sell in the market or privately. A mutual fund consist individual investors buying into different companies together. It is managed by a team of professionals.
If you don’t want to manage your investment, then a mutual fund may be the way to go but then you could also hire a certified financial planner to manage your individual stocks, at a cost of course.
Trading and investing are also slightly different terms. Trading refers to the actual and frequent buying and selling of stocks or funds. Investing, on the other hand, has to do with a long-term approach so the movement of stocks or funds is not as frequent.
Have a plan
No one has money to waste in stocks so you need to have a clear plan going in. You need a CEO and a CFO for the planning and budgeting respectively. This doesn’t mean you should hire people. The point here is to emphasize the need for a vision and a plan as well as a budget and more importantly a reserve fund, in cash, to take care of any emergencies. The reserve fund will help you not have to sell the investment before time, or worse, get into more debt.
Get the capital
Part of plan is to know what you are going to invest i.e. where the cash is coming from. Saving may take too long to make the kind of investment you are thinking about so consider using your 401(K). Most employers have it and it’s pretty easy to have it as your investment capital. Some companies even have ‘classes’ over lunch explaining how it works and would even match your investment dollar for dollar. If you start early, you could have the retirement of your dreams!
Set up a brokerage account
You will need to get a brokerage account with a credible, licensed firm that will conduct your trading and manage your account for you. This is not for free of course, so you will be funding this account. The money will be in the cash portion of the account and used to settle orders. Stocks bought and commissions are debited from this cash, while stocks sold, interest and dividends are credit here as well (which you can withdraw).
Now you’re ready to start the business of buying and selling; and that’s a whole other class. Good luck!
, financial planning
, Stock Market