Apple, Microsoft, Exxon, Mobil, Facebook or McDonalds – all these companies affect our daily lives. And there’s a good chance you’re reading this article from a computer monitor that has Microsoft or Apple operating systems installed, you most likely have a Facebook account, and if you drive, you probably know what Exxon is. All these companies have one thing in common: we can buy their shares, or better yet, we can trade binary options, and their shares will act as an asset. The term “Share” refers to the initial capital invested in companies by the owners. All shares of a company are divided into shares, and owning a share means owning a part of the company.
However, when trading binary options, we do not buy stocks; we only place a Call order if we believe that the price of a certain asset will rise, or a Put order if we believe that the price of the asset will fall. Binary options can be traded with shares of major listed companies as an asset. Of course, another prerequisite, whether you will trade this asset or not, will be the availability of such an asset with your broker, but as a rule, a wide selection of assets is available for trading. In addition to the above, they often trade such assets as shares of Google, Vodafone, British Petroleum, Coca Cola and Intel. Binary options with stocks as an asset can only be traded when the relevant market is open, unlike trading currency pairs or commodities that can be traded around the clock and seven days a week. Your broker will let you know the exact trading hours of your assets in the Asset List section of their website.
Stock Trading: Implications
I talked about how the price of a stock can rise or fall, so let’s look at what causes the share price of a certain company to fluctuate. And the answer will be… Supply and demand, as is the case with commodities and many other financial assets. If the demand for the product produced by the company is great, then this will lead to the fact that the company will receive more profit, and assuming that stock prices directly depend on the economic situation in the company, they will rise. Simply put, if a company is very successful, then the stock price is likely to rise. If the company has financial problems, its share price will fall. And the only way for us, ordinary traders, to constantly know how financially stable a certain company is is to constantly monitor earnings reports and any news that may affect the success of this company.
Hypothetically, let’s assume that Apple has announced the release of a new iPad with the ability to reproduce the image in 3D. Not bad, I agree. And as soon as the new iPad is introduced to the market, and this is a really competitive product, a huge number of gadget lovers will run to storm Apple stores to put their hands on this event. What do you think will happen to the company’s stock prices? Rather, since today everyone is interested in Apple and wants to buy their products. That will have a positive effect on their sales and earnings reports, so that the shares of a successful company will be expensive.
Of all the assets that can be traded, stocks will probably be the most attractive for novice traders, as brokers usually offer shares of large well-known companies for trading. Since everyone has heard of those companies in one way or another, it doesn’t take a financial genius to know when Google launches a new smartphone, or when Facebook will require a monthly payment for using an account.
My Top Tips for Stock Trading
Be sensible and don’t let your subjective opinion influence the trading of shares of a certain company or a certain product. Perhaps it is necessary to clarify what exactly I mean. As I said, most likely, we are already using the products of the company whose shares serve as an asset to us. There is no question that we have different opinions about different products. I decide to buy an iPhone because I think it’s better than Samsung’s Galaxy phone. And here, on a subconscious level, lies a mistake that should be avoided: never allow yourself to be biased towards a certain stock just because you use the products of this company and love to use them. It seems that it’s not even worth mentioning, you can say that you’re not going to put Calls on Apple just because you like the iPhone. However, your subconscious mind can play a cruel joke on you. If you like the product, moreover, if you make money by trading the shares of that company, then you will make an exceptionally pleasant experience from working with the company. Thus, emotionally, you are no longer objective, and you will attribute more importance to a small but positive event associated with that company.
High-profile stocks Trading Information & Tips
Apple Review : Exchange: NASDAQ:Working hours: five days a week, during NASDAQ business hours (9:30 a.m. to 4: 00 p.m. ET). Your broker may offer a different time for trading this binary option, so check with them for the exact time.
Brokers offering binary options trading on Apple shares: Almost all major brokers offer Apple stock as an asset
The best advice about Apple in 50 words: Apple has gone through its string of bugs and defective products. Remember at least the problems with the iPhone, with the antenna, or terrible misunderstandings with their Maps application? And since this company is the world leader in the production of electronics for home use, the attention of the whole world is drawn to it, so that even the slightest mistake can lead to a drop in the stock price.
Google Review
:Exchange: NASDAQ Business Hours: Five days a week, during NASDAQ business hours (9:30 a.m. to 4:00 p.m. ET). Your broker may offer a different time for trading this binary option, so check with them for the exact time.
Brokers Offering Google Stock Binary Options Trading: Almost all major brokers offer Google stock as an asset
The best advice about Google in 50 words: Although Google is the world leader in the field of search engines, but every innovation from their direct competitors, such as Yahoo or Bing, will directly affect the price of Google shares. Competitors are also trying to poach some employees, and these transitions can also have a serious impact on the share price. For example, Marissa Mayer, Google’s vice president of search products and user experience, left the company in July 2012 to become CEO at Yahoo. Phew, what a pig planted.
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Tagged with: Binary Options Academy • Share Options
