If you are looking to trade in Australia, now is one of the best times ever to do so. Australia has one of the largest marketplaces in the world, and some of the most active markets, both in terms of the stock exchanges and its Forex trading. Whether you live in Australia and are new to trading, or if you are considering investing some time and capital into the Australian economy, this nation holds a lot of potential when it comes to profits. It also has a lot of stability and expected growth, making this a very lucrative growing market, both domestically and internationally. [Read more…]
One of the top things to look out for over the coming weeks in the world of Forex trading is the relationship between the British pound sterling and the euro. Those in positions of authority with the pound have stated that there is a strong potential for a currency “shock” to occur within the next week or so, and this could lead to a profound drop in the pound’s strength against major currencies. The euro is a prime candidate for which currency that shock will be felt hardest against, and as such, this is a pair that has had a lot of our attention devoted to recently. [Read more…]
If you are looking for further proof that economic policy decisions have a bearing on fluctuations in asset prices, here it is. Very recently, the U.S. Federal Reserve decided to hold off on raising interest rates for borrowing the U.S. dollar. This has a direct impact on the ability of U.S. based companies to borrow money, and it signals that the dollar isn’t quite as strong yet as it could be. While the Fed did cite that the dollar was growing closer to where they wanted it to be, and that the economy is headed in the right direction, overall, things are not quite as strong as they would like them to be at this point in the year. [Read more…]
As any short term trader knows, using technical indicators is a must if you want to be successful. There are other considerations that you want to take into account, though, but in the end, the thing that triggers a trade should rely on technical information. When trading the EUR/USD over the coming week, know that while the market is pulling the asset upward in price, each individual entry and exit point, or beginning point and expiry if you are focusing on binary options, should be determined by the technical data that you have at hand.
The euro is being buoyed right now because of a weakening U.S. dollar. Over the past month, the pair has risen from about 1.1366 to 1.1406. During that time, the price spiked up above 1.155 for a brief time. However, weak economic data coming from the U.S. is likely to keep the dollar weak, and this means that although the price has dropped over the past couple weeks since hitting that high point, the euro is still stronger than the dollar, and your trades should take this into account. [Read more…]
Recently, the financial magazine Kiplinger released a report of the five best places to put your money during a bear market. These included five different mutual funds, all with a focus on low fees and small yet steady gains. One specialized in dividends, one on cash markets, another on the healthcare sector. These reveal specific models of thinking, and can be helpful for traders to consider.
When it comes to short term trading, mutual funds have no use whatsoever, even the low cost ones like those featured by Kiplinger. Low costs are great, but mutual funds focus on long term growth, so the positions are not optimized for someone with a focus of less than a year for their holdings. [Read more…]
Central banks play an enormous role when it comes to what domestic stock markets will do. We’ve seen this recently in the United States when the Federal Reserve raised borrowing interest rates and the stock market took a dive in mid-December of last year. Looking at what will happen to currency exchange rates is a bit more complicated than this, but when central bank actions are interpreted correctly, it can have a profound effect on the results of your trading, regardless of whether you trade in the Forex marketplace or if you use binary options to tackle currencies.
This coming week, there are a few major central banks that will be publishing minutes from their meetings, and this can lead us to information on what they are thinking as far as future rate hikes, or drops, will go. [Read more…]
The decline of gold mining stocks has finally neared its end. Following a simple law of syllogism, we can see that gold mines are about to come back into prominence as a growth stock. First, look at what’s happening with central banks all over the world. They are struggling to help economies stabilize, and this goes for pretty much every major country. The U.S. Federal Reserve, the European Central Bank, the Bank of England, and the Bank of Japan are all in flux right now, trying to adjust interest rates to help their specific economies find some traction and help growth resume. This has led to a lack of stability in both currencies and in sovereign bonds. When this occurs, long term investors with a focus on staying active find a place to compensate for the lack of profits, and gold is the typical go to choice. When the price of gold goes up, gold mines see higher profits. This chain of events has led to the forecast for gold mine stocks becoming far more favorable. [Read more…]
The Martingale strategy is one of the most well known gambling methods in the world, so we have decided to evaluate its usefulness when it comes to binary options trading. It’s a very simple theory, actually, and that’s a large part of its appeal. You start with a minimum wager or risk amount, and then if you lose, you double that on your next attempt. Every time you lose, you double again. Once you have a successful wager, then you reset back to the minimum. If this is done right, in theory you should find that you churn out a small but consistent profit over the course of time. This is more of a money management system than it is a trading strategy, but it does blur the lines a bit in this respect.
How to Use It?
Let’s look at how the Martingale works in real life binary options trading. Let’s say you want to trade the euro/U.S. dollar currency pair and have a good read on what the market is doing for this. [Read more…]
According to experts, the energy sector is in big trouble. Companies like TerraForm Power are seeing their stocks fall by 10 percent or more on a daily basis, the price of crude oil is currently under $40 per barrel, and the general chances of default for companies in this sector are higher than they have been in a very long time. For bears, this is a great market thanks to the volatility, uncertainty, and plain old discomfort that most companies are feeling right now.
This doesn’t mean that you can just blindly go short on an energy company and expect to profit. It only means that you have a higher probability of success than before by taking this approach. For starters, even TerraForm has been having outstanding days lately. They’re nowhere near their previous levels, but even in the midst of a crisis, they have had days where their price has attempted to make a rebound. Back in April, the company’s stock had climbed up over $40 per share and it now stands under $10, having lost more than 75 percent of its value. However, even in the middle of something like this, there are gains. On Friday, November 20th, the stock gained over 9 percent. This isn’t a ton as it ended up being less than a dollar, but the point is the same regardless of which stock (or any other asset, really) you decide to trade. [Read more…]
Gold futures have had an interesting week. They started out under $1,130 per ounce, skyrocketed up to $1,155, and now look like they are coming back down to reality. At the time of writing, they were at $1,148.60 per ounce and dropping. Where this will level out remains to be seen.
Even something as historically stable as gold is affected when markets seesaw like they have in the U.S. stock markets lately. Gold is one of those commodities that usually holds its value no matter what happens, but there is no denying the fact that it does have a very indirect correlation to the U.S. stock markets. Exploring this a little bit will help to illuminate what’s going on with the sudden volatility in gold futures. [Read more…]