Learn Binary Options

Binary options traders need to know the value of binary options trading opinions they will be getting. This is the only way of determining whether you should act on the opinions or not. Some opinions are not based on any solid fundamentals and are just floated to create a sensation in the market.

When looking at the value of binary options trading opinions, you should consider the source of the opinions. You should stick to professional opinions because professionals have years of experience in binary options trade and they have theoretical knowledge of the rules and regulations and of the strategies. A professional broker will not have any reason to bring you down. You should go for brokers who work for respected brokerage houses because such brokerage houses have a reputation to uphold and they will not let their brokers engage in fraudulent activities.

The value of opinions by different people start with the value you put on such individuals. You are the one to arrive at the value since we are all different. Binary options traders should be careful not to dismiss opinions of others purely because they do not like the character of the individual giving the opinion. You should check the track record of the persons giving the binary options trading opinions – this is a sure way of determining the credibility and reliability of the opinion. You should also check the qualifications of such persons. You can ask for recommendations from people who had sought binary options trading opinions in the past and if you getting the opinion online, you should ask for customer testimonials.

Binary options traders should also consider getting binary options trading opinions from people who are already successful in binary options trade. Traders can learn from the successes and failures of such investors and they can learn the tips and tricks that can guarantee success in the trade. Traders will have the opportunity of getting a strategy that has been proven and tested.

You should be weary of binary options trading opinions that are offered online. Some unscrupulous people are offering opinions that are half truths or all lies so that you can retain them as your brokers or so that they can take your money fraudulently. You should only go to trusted websites by renowned authorities in binary options trade and you should always get customer testimonials.

The value that is placed on binary options trading opinions is in the eyes of the beholder. It is the work of the binary options traders to determine how much they will let the opinion influence them. Although it is wise to be open to binary options trading opinions by those who know more than you do, you should not base your investing decisions on these opinions. Our circumstances are different and we have different goals – what works for one person may not work for you. Listen to different opinions and filter out information you do not need. Binary options trading opinions should only act as a reference point as you make your investment decisions.

The Dollar tumbled Tuesday falling just south of 74.30 on the DXY. The Kiwi was the big winner advancing 1.38% followed by the Pound at 1.03%. Meanwhile the JPY was the only major to lose ground to the Greenback as an emergency meeting of finance minister in Japan was convened to discuss the JPY’s continued strength.

The Dollar slide was triggered by a wave of positive economic data releases. On the home front, contracts to purchased existing homes jumped 3.7% unexpectedly. ISM figures remained above the critical 50 level. Couple the data releases with positive Black Friday and weekend sales as well as Dubai shoring up its debt facility payments and we had the ingredients for a massive Global Equity Market rally. It will be a quiet Wednesday for economic releases.

Oil finished the day up just over a dollar a barrel to 78.37. Gold closed at 1,196.60 up $20 from the day before. In intra-day trading Gold broke 1,200 before retracing, although futures are pointing up this morning so 1,200 should be no barrier today.

Upcoming Forex Events for December 2, 2009

EUR PPI (MoM) Forecast 0.10% Previous -0.40%
USD ADP Nonfarm Employment Change Forecast -148.00K Previous -203.00K
USD Beige Book
AUD Retail Sales (MoM) Forecast 0.50% Previous -0.20%

Research by https://www.ufx.com

EUR/USD:

Now that the EUR has safely breached resistance and survived the Dubai scare let’s take a look at where the EUR may be heading next. In order to project forward we must first look back at where the EUR has been. In the Graph below you can clearly see the period of complete market turmoil, commencing July of 2008. Over the next year notice the ensuing volatility represented by the white circle. The area in the red box shows a steadier trend emerging in June 2009. This is further evidenced by price cleanly riding up the 50 SMA in yellow.

I drew a Fibonacci Projection from the low indicated by Box A to the high indicated by Box B on the Graph below. These points are significant because they are inflection points that began the EUR rally. Additionally, they are located in the area of volatility circled in white above. Fibonacci makes sense and order from disorder and chaos. Therefore using these points for the basis of the projection is taking chaos or what we refer to as volatility and making order and sense from it which is the period of time represented by the red box above. View the results in the Graph below.

The Fibonacci’s Projections land on almost precisely the last 3 resistance levels and highlights past price action resistance points as well. The FIBO 138.2% level at 1.5048 was struck in October when the EUR finally broke the psychological 1.50 barrier. It was tested again in November before finally being taken out a few days ago.

So where is the EUR headed next? Based on the Fibonacci Projections we expect to meet resistance at 150%, which coincides with previous support levels as indicated by the 2 blue circles back in May and June of 2008. If the Fibonacci 150% level is taken out then the next point of resistance is the 161.8% or approximately 1.55. You can see the congestion at that level starting in May 2008 and lasting through June 2008.

Since the 50 SMA has been holding such strong support for this EUR move our new Long entries would trigger near the 50 SMA (buying on the dips). If we breach the 150% Fibonacci level then we would increase our Long and look to take profit near 1.55. However, in order to enter a short we would need to see an entire candle appear below the 50 SMA. This is an occurrence that has not taken place in months.

USD/JPY:

Fibonacci tools never cease to amaze me.  The question becomes do they predict or become a self fulfilling prophecy?  In the end it may not matter.  What does matter is that Fibonacci tools assist traders in generating expectations on price action whether you day trade or trade a couple times a week. Traders can quantify seemingly random or chaotic price action with the use of Fibonacci tools.

Near term resistance on the JPY was at 88.00 or R1 as shown on the Graph below.  R1 was tested twice before giving out last Thursday the 25^th.  R2 at 87.15 formed in December of 2008 and was tested again in January of 2009.  The Candle that broke R1 stopped precisely at R2.  The very next day  R2 was taken out.  The question becomes where will price go from there?

For the answer we turn to Sir Fibonacci.  If you drew a Fibonacci Projection from the JPY low back in April of 09′ at a handle of 101.44 until R1 then the next Fibonacci level forms at 84.84, or 123.6%. Notice on the Graph that JPY hit exactly that line before retracing its path back to R2.

Simply looking at price action, the breaking news, and fundamentals would have left a trader sidelined by the volatility.  However, the use of Support and Resistance lines coupled with Fibonacci Projections helped interpret price’s volatile ride.

The BOJ picked up its rhetoric alluding to potential intervention once the Yen slid beneath 85.  Japan almost outright favors a weak JPY as they rely on a weak exchange rate for their export business. The export business accounts for a large part of Japan’s GDP. So where will the JPY go next? Consult your local Fibonacci tool………

Research by http://www.golearnforex.net

Commodity currencies rallied today with the AUD gaining 1.03% on the Greenback while the Pound gave up nearly 3/10^th of a percent.  The EUR and CHF were basically flat on the day.  Speculation in the market about European exposure to Dubai kept the respective currencies in check.  Gold advanced $1.20 to 1,178.90 and Oil picked up $1.15 to close at 77.18. In the Agricultural space Corn, Wheat, and Soybeans were up strongly as well.

Global Equity Markets were mixed as Asian markets advanced while European markets gave up Friday’s premature gains.  In the U.S the DJIA picked up 34.92 points to close at 10,344.84.  Normal trading volumes are expected to resume tomorrow.  Futures at the moment are mixed with Asian markets looking to give back Monday’s gains while European markets look set to advance.

On the data docket for Tuesday we have the RBA set to announce its interest rate decision.  The market is looking for another quarter point hike to 3.75%. In Switzerland GDP is set to print.  In the Euro-zone, German Unemployment Change is due out with analyst expecting a positive print.  In the U.S. ISM Manufacturing figures will be publish and expectations are for a 55 figure.

Upcoming Forex Events for December 1, 2009

JPY     Interest Rate Decision Actual  0.10%   Previous  0.10%

CHF    GDP (QoQ) Actual  0.30% Forecast  0.30%  Previous  -0.30%

JPY      BOJ Press Conference

USD     ISM Manufacturing Index Forecast    54.80  Previous  55.70

Research by http://www.golearnforex.net

You will read everywhere that a positive outlook and a dash of optimism is integral when trading in the foreign exchange market.  Learning forex trade is more than just examining charts and diagrams, but rather keeping a stiff upper lip and a bit of self control.

Attitude carries more than the worth of gold when dealing with the pressure and consequence of trading forex.  Frustration grows easily when forex traders miss a lucrative opportunity or take a big loss.  The temptation to go “all in” can be overpowering and impatience can breed a losing attitude.

Not allowing your emotions determine your next trade is easier said than done.  It all comes down to one word – discipline.  If you think that after a big loss (or a series of small ones) that you are going to “take vengeance” on the market, you’re about to embark on a disappointing path.  Yes, being able to make serious decisions spur of the moment is crucial, but not when they are done in a reckless, emotional way.  What differentiates these two behaviors is the thought process leading up to the quick trade.

Throwing off the negative feelings and low worth that accompany a loss is often the driving force that leads to these behaviors.  You should never risk more than 2-3% of your capital on any trade, however during these emotional hazes, traders sometimes leverage 5-7% to compensate for the previous losses.

There are a few simple practices that you can implement that can help keep you grounded when trading in such a highly volatile market.

1)      Have a trading plan.  Start your day with a purpose, after reading the reports and signals.  This plan needs to have freedom to move according to market fluctuations, but put certain boundaries on your trading behavior.

2)      Be the adult.  When you feel those feelings welling up inside of you that push you to make irrational trading choices, walk away from the trade.

3)      Keep a “mantra” or “motto” next to your computer.  Find something that speaks to you and your goals as a forex trader.  Draw on this wisdom instead of trusting your emotions whenever you feel tempted to make forex more of a gamble than an investment option.

4)      Analyze your losses, don’t just try to erase them.  It is irrational to take a loss for 60, 70 or even 100 pips. This is the obvious outcome of a bad trade decision.  If this happens it’s time to take a step back and re-evaluate whether you’re trading with your mind or your emotions.

5)      Put your heads together.  Keep in the company of grounded individuals who are also experienced in forex trade.  By getting feedback and analyzing together, you will feel less isolated and be held accountable to trade with the right expectations and intentions.

There’s always tomorrow, “it’s only a day away.”  So, meditate on this and be assured that the next profitable trade will be coming along in a short while.  Exercise some patience and faith and keep your mind free and clear to ensure success.  Avoid getting down in the dumps over a few losses and keep on the sunny side of the forex trade.

It was a mixed day for the Global Equity Markets on Friday following Dubai’s debt default announcement the day before.  The markets in Asia continued to sell off while in Europe they apparently felt the exposure was sufficiently contained.  In the U.S on Friday after returning from Holiday the day prior, it was the DJIA’s turn to take some risk off the table as it closed lower by 154.48 points to 10,309.92 Opening session futures are pointing positive in premarket hours.

The United Arab Emirates (UAE) Central Bank issued a statement indicating they would offer financing to the local and foreign banks at 50bp over the 3month local benchmark rate.  This facility offered by the U.A.E C.B will ensure liquidity and restore some confidence in the market.

On the economic data docket for Monday we have a number items set to print out of the U.K.  However, forex traders will be analyzing Black Friday sales numbers as well as the ensuing weekend figures.  Currently, net sales figures look to be on par with last year.  Additionally for Monday, Euro-zone CPI will hit the wire as will Canadian GDP.

Upcoming Forex Events for November 30, 2009

EUR    CPI (YoY)     Forecast   0.40%  Previous  -0.10%

CAD   GDP (MoM)    Forecast  0.40%  Previous  -0.10%

USD    Chicago PMI   Forecast  53.00  Previous  54.20

AUD   Interest Rate Decision Forecast  3.75%  Previous  3.50%

Research by http://www.golearnforex.net

The U.S Dollar made headlines yesterday unfortunately for the Greenback it was not positive.  The DXY, an index weighted basket of currencies against that Dollar, hit a low for the year touching just below 74.20 before a mild retreat.  EUR and CHF both took out near term resistance with the EUR touching an intra-day high of 1.5145 and the CHF dropped below Dollar parity to .9920.

Global Equity Markets were mostly up as the DJIA closed its session ahead 30.69 points to 10,464.40 before the U.S Holiday.  Gold struck 1,192 and Oil briefly crosses $78 a barrel before leveling off,  as Crude Oil inventories in the U.S were reported to be on the rise.

There are a number of economic data releases due out in Japan and the Euro-zone.  The ones to watch will be the CPI from the Euro-zone and the Jobless Rate in Japan.  Today is a U.S Holiday, so expect lighter than normal volumes across all markets.

Upcoming Forex Events for November 26, 2009

GBP     CBI Distributive Trades Survey        Forecast  11.00  Previous  8.00

EUR    German CPI (MoM)              Forecast  0.00%  Previous  0.10%

JPY     Tokyo Core CPI (YoY)           Forecast   -2.00%  Previous  -2.20%

NZD     Inflation Expectations (QoQ)            Previous  2.30%

Research by http://www.golearnforex.net

Year End:

Thanksgiving in the U.S marks the beginning of the Holiday Season.  The day after Thanksgiving known as Black Friday marks the commencement of the Holiday shopping season.  Many analysts view this particular season as one of the most important shopping seasons in recent history.  The idea is simple.  If the consumer stays home and sales are down significantly it may be the final nail in the coffin for many retailers who are still struggling from sluggish sales and hard to find credit.

The following are some important economic data releases to watch heading into the final month of 2009.  Economic data releases related to the Consumer, Housing, and the Federal Reserve will capture forex trader’s attention the most.  Let’s take a brief moment and highlight the key releases under those 3 sectors.

Consumer – “Retail Sales” will enable traders to gauge consumer spending and the impact on the retail market and its trickle-down effect.  The “Unemployment Rate” will be a good indicator of whether the consumer will derail, assist, or possibly be neutral in a pending recovery.

Housing – “Home Sales” both new and existing will continue to be very important as this is the sector that nearly caused the financial collapse. As many as 1 in 4 home owners are underwater so it is vital that home sales and home prices stabilize.

Federal Reserve – comments, minutes, and meetings dictate financial policy. Any speculation of a possible rate increase will strengthen the Greenback.  The reason behind why the FED may want or need to raise rates will be secondary to the actual intimation of a hike.

An additional variable to consider heading into year-end will be liquidity.  There are many ingredients that feed into this equation.  Many funds are up huge this year and want to lock in profits for their year-end closing of the books. This is very important given last year’s massive losses. Therefore you can expect typical end of year slack in volume.  Another factor that affects liquidity will be the actual hoarding of cash by corporations and banks in order to shore up balances sheets before they report their financials.  To this effect, we have already seen the 3 month T-Bill turn a negative yield as these institutions sock cash away.

Barring some catastrophic event most analysts believe that the Dollar will continue to depreciate. Here are some suggestions for trading the market.  Firstly, let’s look at today (Nov. 25^th) we had positive prints for Jobless Claims and New Home Sales.  Positive means that things are less negative.  The economy is losing fewer jobs but still not adding any new ones either. The Dollar tanked on the news (see chart below) as its G-10 rivals advanced smartly.

Until the news turns truly positive (and not just less negative) it allows traders to take risks.  Traders view the economy as stabilizing but not to the extent that the FED can raise rates.  When data releases are negative the impact is measured in “derailments”.  Derailments are defined as the potential to slow or even reverse a global recovery.  In summary, go short on the Dollar on news which is positive (meaning less negative than the prior month).  Go long the Dollar against the currencies that appreciated the most against it when truly negative data prints.

Analysis by http://www.golearnforex.net