The Dow Theory was created over 100 years ago and was based on a whole series of editorials written by Charles Dow. Although times have changed and trading methods have moved on, the theory still remains valid for binary options traders and others. Six Principles The Dow Theory has six principles that define its theme. [...]
For most forms of investment, you need to look not just at what’s happening now but also where things are likely to move in the coming future. You want to be aware of whether inflation is rising or falling, if interest rates are likely to go up or down and how the economy is faring [...]
Instability is generally something to be avoided because it causes uncertainty and a lack of confidence. For an economy, this can result in high interest rates and a falling currency while commodity prices can be driven up and stock prices can fall. Binary options traders, however, can view instability as an opportunity to make profits. [...]
Binary options trading can present plenty of opportunities to make money but it can also create dangers for the unwary. Being able to recognize market conditions and trade accordingly is a big advantage because markets can perform very differently over time. Volatile Markets The biggest opportunities often arise when the markets are volatile but these [...]
The only time many people come across foreign exchange is when they go away on vacation. Going to a foreign country might mean buying travelers’ checks and getting some foreign currency so they have something to spend while they’re there. As a result, they’re only interested in exchange rates and how much they’ll get for [...]
For people who haven’t traded before, any sort of trading can be a little daunting. Novice traders often focus on the negative aspects by looking at what they would lose if things go wrong. If they do that, they may miss the opportunity to make big profits because they won’t trade at all. Limited Risk [...]
Many fundamental analysts look at earning per share (EPS) for a company when trading binary options in its stock. This can provide guidance as to how stable the share price is and may indicate a rising or falling value when comparing averages over a number of years. Calculating Ratios Once you have established the EPS, [...]
If you follow a particular company for binary options trading, it’s vital that you have as much information as possible so you can accurately predict the way its stock price will move. A combination of technical and fundamental analysis is normally recommended and, for the latter, a company’s earnings per share (EPS) is a measure [...]
If you’re a binary options trader, you often have plenty of things to watch out for company results and announcements if you’re trading a company’s stock, economic forecasts when trading an index and news items if you’re interested in currency pairs or just about anything. Adverse Weather For certain assets, you also need to keep [...]
Many people like some certainty in their lives. They have a daily routine that hardly varies and find comfort in the way many things are predictable. Binary options trading isn’t like that because traders rely on a degree of volatility. If they can predict the way a price will move by a certain time, they’ll [...]
