Microsoft, McDonalds, Starbucks, Exxon, Facebook, Coca-Cola and Google are companies that we meet everyday even if we do not know it like now for example, you are definitely using one if not multiple products of one of the companies we have mentioned above, that is how powerful and big they are.
What you will learn:
- What are stocks?
- What effects stock movement?
- How to trade them in binary options
- Profile of two most traded stocks
We can also trade with them and all eyes are usually on these companies because they are interesting. The only different thing is we are not buying stocks in this case, we are only determining if the price of a stock will go up or down in a certain amount of time. Depending on the broker, there could be even more stocks to trade with, which is a benefit if this is something that interests you.
WHAT EFFECTS THE STOCKS
If you are reading from the start you know we already mentioned supply and demand and that is exactly what effects the prices of stocks go up or down. To quickly sum it all, if there is a bigger demand for a certain product, meaning the prices of their stock will go up and if they are having financial problems, meaning they are not profiting enough as a company and therefore is no real interest, the prices will go down.
MARKET CHANGES. You have to take a look at global economy and what is going on. If there are some bad things happening that could affect the prices of stocks then investors rather hold the stocks and that leads to fall in prices.
EARNING REPORTS. Depending on a report, price will go that way. So if the report is good, naturally the prices will go up. What is considered a bad report? Even if a company has made a profit, that does not mean for investors it is good if previous quarter the company has made more profit. This only means the company made less money, so its a abd sign for investors.
MERGERS. This usually has positive effect on prices because it means only good for business. Mergering companies want to improve and to be more competitive.
GOVERNMENT. This also depends on stock prices since government always issues some new policies. For example, if they increase duties on materials for import then it affects the companies profits and also stock prices. On the other hand if government would issue better conditions for importing then it would increase profitability of companies.
HOW TO TRADE STOCKS IN BINARY OPTIONS
First you need to determine the direction of where the stock will go after reading for example the news. From here you are able to choose based on your decision a simple up or down or any other binary option type that you feel comfortable trading with. For example, if you have earning report, it can be upto few days of positive or negative because it news are spreading. In this situation, the most advisable would be a no touch/touch option since the stock price is more volatile and it more easily breaks through support or resistance.
PROFILE STOCK INFO
APPLE
TRADING HOURS: During normal trading hours of NYSE which are from 9:30 till 4:00 ET, five days a week. Always check with your broker aswell for trading hours.
BROKERS: Usually all binary options brokers have them in their asset list.
TIP: You have to keep in mind that all eyes are with them since they are leading the way in electronics market at the moment and every small mistake even such as with maps can lead to falling the prices down of the stock.
TRADING HOURS: During normal trading hours of NYSE which are from 9:30 till 4:00 ET, five days a week. Always check with your broker aswell for trading hours.
BROKERS: Usually all binary options brokers have them in their asset list.
TIP: Although Google is the leader when it comes to search engine but if someone of their competition such as bing or yahoo comes with new tools or products it directly affects aswell google shares.
KEEP IN MIND…
You should always have in mind that your own thoughts are not neceserally the thoughts of majority therefore do not fall in love with certain company. So you do not become emotionally attached to it because trading does not involve any emotions. Rather focus on real factors, such as fundamental analysis of certain company, if they have good profits and look aswell at their chart.