Strategies in trading gold binary options
Gold is quite possibly the easiest commodity to liquidate, making it a great tool for trading gold binary options.
Trading gold binary options can require stamina as gold trades 24/7, giving investors a lot of material for technical analysis as well as data for tracing long-term fundamentals.
The Fibonacci method is a great tool to learn for predicting lines, levels, and get a good scale of the bear and bull markets. To use the Fibonacci method, investors should start by studying 5-year weekly charts of gold price data. Investment site BullionVault has a 20-year price chart, as well as a live price chart, that investors can use to retrace the Fibonacci lines and connect them to gold’s prices and trends. Are the prices bouncing or are they nearing a Fibonacci line? Once you’ve traced the weekly charts, you can then move on to the daily charts for the short-term signals. Remember, the Fibonacci method demands that traders stick with the dominant trend shown by the weekly charts. If gold’s prices are above a Fibonacci line, then you need to rely on the trends provided by the daily gold price charts.
If you’re a complete beginner of binary options trading, the best thing you can do is to learn to interpret the information you read on a daily basis and trust your instincts instead of relying on different sources. Always basing your predictions on other sources will not only confuse in the long run, but also prevent you from growing. Here are a few tips that beginners to trading gold binary options trade should keep in mind.
1. Learning how to manage your resources is more important than making instant gains. Garnering huge amounts of money will come from your experience in making the wrong decisions. If you run out of cash early in your trading career, you’ll never be able to further your experience.
2. Don’t go overboard. If you can’t afford to risk X amount of money, it’s not worth trading via binary options.
3. Don’t be afraid to take your chances. If you see that the prices are moving according to your prediction, go ahead and stick with the option you’ve chosen.
4. Write down your experiences. Only through your experiences as a trader can you grow. Keeping a ledger and reading it every now and then can make you realize new things and help you make sound trading decisions in the future.
5. Read everything. Don’t underestimate the power of fundamental analysis as this can help you tremendously in predicting what will happen next in the market.