Binary options traders prefer to trade currencies. Since it has stronger changes throughout the day, unlike stocks and other binary assets. Also, currency can always be traded, while shares are traded only during the working hours of exchanges. However, what brings more profit and where are the forecasts more accurate? In this article, we will try to analyze stock trading while trading binary options and how to analyze stocks.
What are Stock Binary Options?
Stocks are one of the most popular assets in the west. Traders believe that stock predictions are more accurate and generate more profits. Since currency trading depends on many factors. There are many companies for asset trading on the exchange, different in volatility and risks. One of the advantages of stock trading is the ability to trade indices. This allows you to use a wide range of binary strategies.
How much can you earn on stocks
Earnings when trading stocks are no different from trading binary options on assets. Traders can trade in both short and long time formats. The number of transactions with early planning remains the same. However, when trading stock options, there are fewer negative trades, which can ultimately give a better result. binary broker.
Factors to consider when trading binary options
- Market Sentiment – Most investors prefer to hold stocks with high profit potentials and sell stocks with lower profit margins.
- Company reports – the main traffic of the cash flow of companies is sales. Sales reports can indicate which stocks are better to work with.
- The time to make a profit and return on investment. We must immediately understand when we want to see a profit on our investments. The more details you know about the stock, the more accurate your prediction will be. Knowledge is powerful and we must not forget it. The more information you can process, the better your results will be.
Preparation for trading binary options on stocks
Which stock to choose for trading
The beginning of trading can be a viewing of news and important events online. The news that came out a day or two ago does not interest us. The market reacts to the news immediately. It is best to watch the news on the following
resources
. They provide the most up-to-date information. Which affects the price of the stock. News in stock trading, and reports are the main tools for decision-making.
How to keep track of your trading portfolio
Since the stock is influenced by many reports and data, we can divide our investment portfolio into several parts. Each part will differ in expiration time and risks. Also the percentage of payments. you need to remember the rule: The lower the risk, the greater the part of the investment. We want to make money, not lose everything at once.
Selection of opening hours of exchanges and promotions
Since stock trading is like during the opening hours of the exchange. You need to know exactly when it opens, and work relative to the opening hours of the exchange, and not your local time. For more accurate forecasts, a trader must learn and understand what factors can greatly affect the price of an asset in long-term and short-term trading. This news can be tracked on leading news portals.
Risk Management in Stock Binary Options Trading
Since the result of both loss and earnings is determined from the very beginning, the trader should use the same rules as when trading options on other assets.
Stock Binary Options Trading Strategy
The best results were shown by complex strategies that used fundamental analysis and technical analysis at the same time.
Such strategies are built in several steps:
- Asset definitions for trading with the help of news
- Determining the level of investor expectations (technical analysis or news analytics)
- Definitions of the real price of a stock (average price for 3 months)
- Level definitions for the price (price target)
After verification and detailed analysis, a breakdown of the level is expected. In stock trading, price levels and directions show the behavior of traders more accurately than binary options trading on currency pairs.
Benefits of Stock Options Trading
- Availability of information and amount of information. Since the number of factors affecting stocks is less than currency pairs, a trader can prepare and consider all possible options. The number of shares is wide, so the trading time is not limited
- The popularity of the stock among investors, you will find a lot of analytical materials that will help in trading
- A wide range of trading strategies and tactics
- High percentage of performance
Conclusion:
Trading binary options on stocks has a high potential for earnings. Trading has shown that stock trading works more as a medium- to long-term investment. There are many strategies and systems that can be used.
News and information releases provide more opportunities for earnings. Stock trading can be suitable for both beginners and will be of interest to professional traders who invest deposits of more than $ 5000. If you decide to trade stocks, you have made the right choice. This experience will help you in trading other assets as well.
The best news resources in English
- www.bloomberg.com
- www.cnbc.com
- www.wsj.com
- www.marketwatch.com
How to read sites in English if you do not know the language?
In order to understand what news comes out of the promotion, it is best to refer to sites in English. Since time passes while the translation comes into Russian. The more time has passed since the release of news on an asset, the less their influence and relevance. We offer you a way to read the news in English.
In order to read the news, you need to use the Chrome browser from Google.
By pressing the right mouse button you will see a line offering to translate the text.
Click on the translation, we open an additional window. After clicking on OPTIONS, you will have a choice of language for translation.
After selecting the language, the entire page is automatically translated into Russian. This way, you can read all the economic news online (without slowing down).
Tagged with: Binary Options Academy • Learning how to trade binary
