Showing posts with label trading. Show all posts
Showing posts with label trading. Show all posts

Sunday, April 14, 2013

The Economist is a Vital Binary Options News Source

editorial cartoon of margaret thatcher
"The lady is not for turning" ~ PM Margaret Thatcher

Why Maggie Thatcher Read The Economist



In the world of binary options trading, information is key. And one of those best placed to give you that information is The Economist magazine. 

The Economist is one of the most well known and respected names in journalism and is read by every single serious investor the world over - and for good reason. Their articles not only deal with financial news, but with the overall global picture of the world economies out there, which is a positive boon for any binary options trader. 

You can’t go wrong reading The Economist magazine every chance you get.

Sunday, January 22, 2012

Why gold is a popular binary options trading asset

Gold prices have been pogoing up the charts
Gold is, in general, quite volatile. For this reason, it can make for a great choice with trading gold binary options. With its volatility, gold tends to fluctuate a great deal in price in a short amount of time. This, of course, is exactly what you want to see when you are trading binary options. The more that the prices fluctuate and the higher or lower they go, the more likely you'll be to make correct choices for the investment in binary options. This means that, assuming you are correct in your prediction, you can make great gains on the money that you invest. For this reason, when you trade binary options, trading gold is certainly a choice that many people make. It's worth looking into the gold binary options choices and seeing if they are right for your needs.

Monday, January 9, 2012

Ten Precious Metals stocks worth looking at when you trade binary options

Here's a list of Top 10 Precious Metal stocks, sorted by highest dividend yield for all you binary options traders out there looking for a worthwhile online investment to take action on.

Along with it is a cartoon video clip of the Top Ten Plus One binary options comic strip panels created by a busy trader during breaks from his internet investing work.

Thursday, December 15, 2011

Politics and economics and how they affect the ways of doing business as a binary options trader

One of the common ways to tell people things secretly
With binary options trading, the political and economic landscape in the world is extremely important. You aren't trading binary options in a vacuum and making a prediction about what you simply think will happen with gold or oil or stocks over a certain time period. You are, rather, taking a look at a given asset based on what you see happening in the world around you. Is the market at the moment moving stronger or is it weakening? Is it a bear market or a bull market right now? How has gold done in the last 30 days, looking at each 24 hour period? These are all ways that you should look at the asset at hand to make a prediction for binary options trading success. All of this will help you to improve your chances of doing well. And it will make it much more likely that you will, as you look at the big picture around you.

Tuesday, November 29, 2011

Academically speaking about binary options affiliate programs

Never underestimate the power of second-hand income. With just a few clicks, new clients of binary options investment platforms can add significant income to the bank accounts of affiliate program members. By passively referring new investors to the trading platforms offered online, the affiliate members can earn real gains for their efforts of bringing on board new traders of binary options. The financial tools that make binary options trading possible have existed for a few decades, but the easy to use affiliate programs that are now available have only been developed recently, and this means that the sector’s potential is still largely untapped. Affiliate program members of these platforms have the possibility to bring on tons of new traders, thus making the potential for financial growth enormous for affiliates.

Sunday, October 2, 2011

Down to the basics - binary option basics

I know that I have spent much time blogging here with tips and quips for trading binary options in a better and more uniform fashion, but I have gotten some letters from readers recently that show me that perhaps I need to explain what binary options are in greater detail, before I get into the nitty gritty of how to squeeze out more profits.

Binary options are trades which are made using the Black-Scholes formula and they basically let you invest on a very "Yes, No or Not Sure" type of decision making basis. For example on a high/low binary option, you have the choice if an asset will go up or down at the closing time 15 minute away, or you can simply not place any position. This binary aspect of the trading is what makes these options so unique. To properly learn how to trade binary options, you should just create an account and place bets of small money till you fully understand how the system works.

Monday, September 26, 2011

The Black-Scholes Flaw

Maze of Binary Options Choices
The Black-Scholes Valuation formula is unique in it's regard to how it calculates binary options for trading. It has several assumptions that are programed into the model and there-in lies the problem. One of the primary assumptions for the Black-Scholes model for trading binary options is that there is access to risk-free capital. For many years this simply meant that gov't bonds were needed to secure risk free lending for this portion of the formula. As of around August 2011, the US credit rating was lowered from AAA to AA+ - this lowering of the credit rating effect binary options in that now rather than borrowing at a risk free interest rate, they have to pay the higher interest rate of less-safe bonds. The trading of binary options goes on and functions as usual, but rather than using US bonds, they are using German, or European instruments.

Monday, September 19, 2011

Binary Options Trading Art - Maze of Fun Funnel

Fun Funnel Maze - Binary Trading Artwork
funnel-maze-yfrimer-binary-art
Maze of a funnel system, sort of like a pinched bulls eye. Made this while at the same time trading binary options online and utilizing my creative abilities to remain calm during busy trading periods. I think this little tip is one of the best ways to improve your game while trading binary options

A few people I have recommended this to have come back to me with questions about what to draw and how to better draw. While I do have some tips on that matter, they are missing the point. Its best to just draw what you enjoy so that you can remove some focus from the binary options trading, but don't over focus on the drawing as it can serve as too much of a distraction when you look at it that way.


Monday, August 29, 2011

Where to get more info on binary options trading history and background:

Fischer BlackCo-Founder of Binary Options Formula
As a seasoned trader of binary options, I often get asked about tips and recommendations. The problem is that I can't answer such a question with a simple answer, however, I can say with certainty that if you educate yourself on the matter, you will see stronger profits when you trade and you'll understand what you are clicking rather than just pressing buttons and hoping for the best,

The first order of business is that you should learn the history of binary options trading as well as familiarize yourself with the Black-Scholes binary options valuation formula.

Once you have mastered this information, then you'll be better equipped to read the graphs and understand which binary option trades are good trades and which ones are riskier. Such information is way more important than the short term "which stock is good" or "which way is the market headed" questions, who's answers have an expiration date of RIGHT NOW.






Sunday, August 28, 2011

Basics of Black Scholes model





Fischer Black
Black Scholes is the basis for all binary options trading, online or off. Once you understand the formula for calculating the prices and closing values of the traded option, it becomes far more clear how to use this information for realizing profit and minimizing risk and loss. Although the formula does not allow for certain gains, it does mitigate the chances of loss and also helps traders "wrap their heads around" the mechanics of the market so that they can use that information to yield a profit or hedge losses. Unlike stocks, bonds, currency and all other forms of trading, binary trading incorporates all those instruments into a very simple YES OR NO type of decision that the trader can then decide if they want to take or not. With the proper emotional conditioning and expanded understanding of the markets' behavior, a trader can double, triple or even greater expand his profits.

Myron Scholes
One of the main aspects required by the Black Scholes Valuation Model is that they must have "frictionless" meaning they do not incur any fees, as well as being one that does not offer dividend and that can be sold fractionally. The process of purchasing such an share would make it very difficult to repeat as who buys "half" a share or any portion of a share other than a whole, and in addition, who will sell you and buy from your shares without charging as how would they afford their own costs. Binary options solve all these issues by combining all of them into a nice tidy unit that they sell as a binary option. While they may loose out on places that otherwise earn them fees, they pass on the savings to the traders, whom they make money from on the difference of profit vs loss.


Monday, August 22, 2011

Tips for trading binary options online:

Think before you click. Trade Binary Options Smart
Tips for binary options trading:
  1. Trade online, only use binary options trading platforms that have real-time updates and don't charge a commission.
  2. Use sites that offer binary trading with the possibility of closing your position before it expires and still making a solid return - utilize this capability to hedge your risk and make lost of small, profitable trades.
  3. Do not start making large trades when you are below your starting point with the hopes of re-couping your losses.
  4. Do not trade if your mindset is not that of a small-gains and reserved approach.
  5. If you loose several trades in a row, then stop trading for a few hours. Do not try and regain your losses quickly.
  6. Analyze graphs and only trade on positions you have a clear picture of. Utilize the various forms of options for different market behaviors
  7. Don't be afraid to take chances, but don't take the chances with large wagers.
  8. Practice reading graphs, review the trades that end in loss so that you can learn from your mistakes.
  9. Keep up to date on the news, especially for political events that effect the price of oil and the stock markets.
  10. Learn the graphs of the financial data and learn to differentiate between a correction and a trend.
Don't be left in the cold. Learn before you trade



Obviously these tips alone are not going to enable you to suddenly become a wealthy binary options trader. But by learning the trends and patterns that keep winning overall, you can be in a better position than starting out cold. Educate yourself about financial betting and general binary options trading and enable yourself to succeed in the volatile marketplace. Don't be discouraged if you have a few losses, the main thing is to learn how to read the market and apply it when it counts.








binary options trading tips - source

Top Ten Reason trading online is better than in-person:

Click and Trade - Online Binary Options Trading
Top Ten List of The Top Reasons that Trading ONLINE is better than In-Person.

Top Ten Reason trading online is better than in-person:

We have all heard and seen the hype about trading online binary options, but we may have forgotten why it is so appealing. This entertaining list reminds us.


Top Ten Reason trading online is better than in-person:

  1. 3 words: Much Shorter Commute
  2. In-person trading: pants mandatory. Online trading: pants optional
  3. Binary trading from home gives you a bit more free time to tan your pasty white thighs.
  4. You can trade your binary options even while you get called in for jury duty.
  5. Less focus on commute, more focus on lunch
  6. Always fun to answer "where do you live? and "where do you work?" questions with an identical reply.
  7. You can't watch TV at the office.
  8. Better trading patterns when you sleep late everyday.
  9. How else are you going to become a binary options trader?
  10. Because you only do online binary options trading so that you don't have to go to work.




We hope you have enjoyed this top ten list. Please visit back regularly to check out the latest news and updates about online binary trading the world around it.





Sunday, August 21, 2011

When will gold pop already?
The higher gold climbs the more intense the debate between bulls and bears, those who think the yellow metal has a long way to run and those who say this is a giant bubble that is going to pop, and soon.Here are five reasons the bears are calling the current run of gold -- up 27 percent since Jan. 1 -- a bubble, and thus something to avoid.

1. Basic economics. The World Gold Council in a recent study said that in the second quarter total global demand for gold declined 17 percent, on a year-over-year basis. But despite that decline the price of gold rose about 25 percent. At some point supply and demand have to come back into balance, say the bears, and when they do it would be best to be out of gold.

2. If it looks like a bubble ... "People believe that gold is a hedge against uncertain times. In the long run, gold prices have kept pace with inflation. People are flocking to it", says Lloyd Thomas, an economics professor at Kansas State University. "But in 2000 the price of gold was $300 an ounce. It has gone up six-fold since then, and it might go up higher than what it is right now. It's gone up too fast -- it's a bubble." 
Thomas compares the current gold market to the U.S. housing market. People believed, as they believe now for gold, that the housing prices would continue to increase. But ultimately, they fell more than 30 percent in most 
American cities.


"The same thing could happen to gold; it's not risk-free. In the last 10 years it's gone up 17 percent a year, but the price of things we purchase has only gone up 3 percent a year. That's unsustainable. It's my own opinion that gold prices will collapse -- I just don't know when", he says.

3. Soros has left the building. Billionaire George Soros as well as Eric Mindich cut their holdings in the SPDR Gold Trust, an exchange-traded fund, in the second quarter as prices rallied. You may not understand algorithms, econometrics or 200-day moving averages, but almost anyone can imitate winners.
Major professional money managers are also starting to get worried. Wells Fargo is warning its clients, including wealthy ones, that gold is grossly overbought, a "bubble that is poised to burst." Said Wells Fargo analyst Dean Junkans: "We have seen the economic damage" of past bubbles and "feel compelled to ring the warning bells."
"There could be substantial risk to gold once the fear that the world is coming to an end subsides," Junkans told Reuters in a telephone interview from Minneapolis. "We are worried about the downward risk."

4. Investor naivete. "Trees don't grow till heaven. I think buyers need to be beware we are in a 'caveat emptor' market," Jeffrey Rhodes, global head of precious metals at INTL FCStone, a brokerage, told Reuters.
"My problem is that people are buying gold and they don't understand why they are buying gold and that's a big problem and that is a classic symptom of a bubble," said Rhodes.

5. What is your pain tolerance? Even if you don't think gold is a bubble, it certainly is a bull market, and bull markets often end dirty and messy, and take years to recover from. Think the U.S. real estate collapse and all the attendant carnage that erupted in 2008 and still hasn't been repaired, among homeowners or bankers. The same could be said of property markets in Ireland and Great Britain.




Want to hedge against the Gold Standard? Try trading binary options.  


Thanks to the source for the article on Gold Ready To Pop

Wednesday, August 17, 2011

Top-Ten Funniest Explanation of What are Binary Options

Hysterical Binary Options Trader
List of Top-Ten Funniest Explanation of Binary Options

Binary options trading is the hottest thing since margin-investing and CDI's - except way more legitimate and totally legal. Not everyone is 100% sure what is a binary option or what it means to trade them. Below are the funniest explanation that we have gotten so far. Enjoy.





 

Top Ten Funniest Explanations of
What are Binary Options:

10) Stocks that perform magic by using confusing math.
9) Commodities that make you money when they loose money

8) Investment instrument that let you pry open the markets value
7) Piggy bank for those that have science degree in math.
6) It is the equivalent of Diet Coke for the investment community, all the fun and no calories.
5) It's that thing them investment-boys are doing these days.
4) I don't know, I can't even figure out how to use Facebook.
3) Is that trading stocks in Morse code?
2) Binary option is when a person trading stocks has to think like a computer.
1)Have no idea what it is, but sure have fun trading them.




Laughing Binary Options Trader






We'd like to thank this site for the top-ten list of funny explanations for What Are Binary Options

Thursday, August 11, 2011

Some common info on what are binary options:

Binary option (From Wikipedia)

In finance, a binary option is a type of option where the payoff is either some fixed amount of some asset or nothing at all. The two main types of binary options are the cash-or-nothing binary option and the asset-or-nothing binary option. The cash-or-nothing binary option pays some fixed amount of cash if the option expires in-the-money while the asset-or-nothing pays the value of the underlying security. Thus, the options are binary in nature because there are only two possible outcomes. They are also called all-or-nothing options, digital options (more common in forex/interest rate markets), and Fixed Return Options (FROs) (on the American Stock Exchange). Binary options are usually European-styleoptions.
For example, a purchase is made of a binary cash-or-nothing call option on XYZ Corp's stock struck at $100 with a binary payoff of $1000. Then, if at the future maturity date, the stock is trading at or above $100, $1000 is received. If its stock is trading below $100, nothing is received.
In the popular Black-Scholes model, the value of a digital option can be expressed in terms of the cumulative normal distribution function.
Click here to read the full Wikipedia article on Binary Options




A binary option is aBinary Options Trader - Worried and stressed fixed return option because there are only 2 possible outcomes which are fully realized at the onset of the contract
A binary option is a contract which gives the buyer (known as the owner) the right, but not the obligation, to buy an underlying asset at a fixed price within a specified time frame.
The items being traded are known as underlying assets and they could be a range of products: currencies (e.g. USD/JPY), commodities (e.g. Oil, Gold), stocks (e.g. Microsoft, Coca Cola) or indices (e.g. Nasdaq, FTSE 100). The fixed price at which the owner buys or sells at, is known as the strike price.
When trading binary options, the buyer of the option chooses whether he thinks the underlying asset will hit the strike price by the selected expiry time – this could be at the end of the nearest hour or the end of the day, week or month.
The owner places a call option on his binary option trade if he thinks that at the expiry time the option will be higher than the current price. He places a put option if he thinks that at the expiry time the option will be lower than the current price.

Want to try and trade binary options on your own, visit http://optionsclick.com

Thank you to this source for the info on Binary Options

Tuesday, August 9, 2011

US Credit Rating Cut by S&P

Equities

Wall Street’s Thursday woes led to a steep drop in Asian markets on Friday. The Nikkei fell 3.7% to 9305, and similarly, the Kospi dropped 3.7%. Oil-related stocks were hit hard, following a steep drop in crude oil. Australia’s ASX 200 tumbled 4% to a 2-year low, and the Hang Seng shed 4.3%. China’s Shanghai Composite fared better than most, losing just 2.2%.
European markets extended their losses, as the FTSE fell 2.7%, the DAX dropped 2.8% and the CAC40 decline 1.3%. The oil and gas sector fell 3.4% on concerns about economic growth, and Royal Bank of Scotland tumbled 6.9% after reporting a loss of $1.1 billion.
US stocks swung wildly, as the market digested an upbeat jobs report. The Dow initially opened up more than 170 points, and from that point dropped more than 420 points before reversing to close up 61 points. The S&P 500 closed down .7% and the Nasdaq ended with a loss of .9%. For the week, the S&P 500 fell 7.2% and the Nasdaq dropped 8.1%, their steepest losses since November 2008.
Binary Daily Analysis
Dow Swings more than 400 Points
Priceline shares jumped 9% on strong earnings which beat forecasts.

Treasuries and Commodities

After the close, S&P cut the US credit rating to AA+ from AAA, a move the White House labeled hasty.
The Crashing Trader
Treasuries sold off, as rumors of the credit cut weighed on fixed income. 10-year notes fell 1 12/32 to yield 2.56%, and 30-year notes plunged 3 11/32 to yield 3.85%.
Gasoline futures jumped 2.5% to 2.8052, while crude oil inched up .3% to 86.88, recovering from an earlier drop down to 82.87
Metals continued to decline, as silver fell 3.1% to 38.21, gold dropped 7.20 to 1651.80, and copper lost 2.8% to 4.117.

Currencies

The Euro surged 1.4% to 1.4290 as Italy announced steps to react to the country’s debt woes. The Pound gained .8% 1.6391, and the Yen advanced 1% to 78.42, while the Swiss Franc and Canadian Dollar closed little changed.

Economic Outlook

Big Ol' Dollar Sign, USD
Non-farm payroll data showed the US economy gained 117K jobs in July, far better than the 89K forecast, and the unemployment rate dipped to 9.1%. This was the first upbeat jobs report since April.
Consumer Credit jumped 7.7% in June, a positive sign of consumer confidence.


An emergency meeting was held over the weekend between global financial officials, to address the debt troubles facing the US and Europe.


We'd like to thank this content for the source info on this economic update Visit What Are Binary Options to read the source article on this

Monday, August 1, 2011

Casino vs binary trading

Are binary options like gambling?

 

I have heard several times from people that when you are buying and selling Binary Options, your are basically gambling. While this may be the case for some people who have addiction issues, they are both quite different. 

Casino games are based on luck and binary trading is based on real market conditions. This is not to say that casino's don't also involve skill or that binary trading doesn't experience luck, but the basis for the trades and exchanges of the two are very different. 


The thing is that casino games are designed for users to win in order to keep them entertained and binary trading are based on which ever direction the market swings, So not sure which one is better.




Monday, July 25, 2011

The Black Scholes smiling graph.

As you are probably familiar with, the Black-Scholes model is the basis for Binary Trading, a new form of derivative investment that enables you to make money based on your accurate prediction of how the market will perform.

dV=\left(\mu S \frac{\partial V}{\partial S}+\frac{\partial V}{\partial t}+\frac{1}{2}\sigma^{2}S^{2}\frac{\partial^{2} V}{\partial S^{2}}\right)dt+\sigma S \frac{\partial V}{\partial S}\,dW.
This means that you can make good money by accurately predicting that a stock or other investment will go down in price, will remain the same, or will reach or drop to a certain level. While in the past, stocks would only be of use to an investor if they performed well (or in the example of a short sale, performed poorly) - but the Black Scholes model allows for "Binary Trading" meaning that you can hedge the market based on all-or-nothing positions, meaning you make 85% (or so) profit if you are right and loose 100% if you are wrong.

\Delta S = \mu S \,\Delta t+\sigma S\,\Delta W\,
\Delta V=\left(\mu S \frac{\partial V}{\partial S}+\frac{\partial V}{\partial t}+\frac{1}{2}\sigma^{2}S^{2}\frac{\partial^{2} V}{\partial S^{2}}\right)\Delta t+\sigma S \frac{\partial V}{\partial S}\,\Delta W.


With the way the market has behaved in the recent years, it became critical for investors to be able to make money using their knowledge of the market, without having to wait YEARS for the bull market to return.

Basically, if you can look at a graph and predict where it will go next, then binary options trading is right for you.