I know you might be wondering, especially if you are a newbie in trading, what candlesticks actually are. They’re not the real life wax candles of course; its actually a formation used while trading in general.Lets talk about how they are formed.
To create a candlestick chart, you must have good information pf open, high, low and close values for each time period you want to display.
The filled portion is called the body and the thin lines are reffered to as shadows or wicks. The top of the upper wick indicates high and the bottom of the lower shadow indicates low. If the stock closes higher than its opening price,a hollow candlestick is formed, with the bottom indicating stock opening price and the top indicating closing price. A filled candlestick is formed, if the stock closes lower than its opening price; with the top indicating opening price and the bottom indicating closing price.
In conclusion, candlesticks are more visually appealing compared to bar or line charts. Each candlestick provides a very clear description of price actions and also the relationship the open and close, as well as the high and low. Hollow candlesticks, where the close is greater than the open, indicate buying pressure. Filled candlesticks, where the close is less than the open, indicate selling pressure.
Learn More about Candlesticks and other trading strategies here.
Many people say binary options is a form of betting because a trader has only two options to trade with; the rise or the fall of a certain market or commodity. For some, however, this is an easy way of trading and often yields in mouth-watering profits for traders, but no matter how simple it may look like, one must have proficient knowledge of what binary options are, and not just venture into the market with a gambler’s spirit; most times, this ends in a disaster. This is where TIATrading House; a team of professional options traders come into the picture.(we offer intensive training on what options are and how you can trade successfully)
Now, let’s have a brief orientation on what CALLs and PUTs are in trading options. Basically, when you place a CALL option after your intensive analysis of the market; it means the price of the commodity or market would rise above its current price with respect to the time you place that option. Say, for example, the price of gold is currently at 1.5, placing a CALL option over a time frame of 5 minutes indicates that the price of gold would go above 1.5 in the next 5 minutes. While the PUT option would indicate otherwise; this would mean the price of gold would drop below 1.5 in the next 5 minutes.
In conclusion, here’s a good advice; make sure you have standard knowledge on how to trade binary options properly, instead of just making it a gambling game. Gambling has actually ruined a lot of lives.
Well, the most important trading tool you need, is a POSITIVE MINDSET;
not one that is filled up with frustration from peers or life itself. Heres a short example of what I mean; You should not trade when you still have your head filled up with regrets, maybe from a negative step you took or some other stuff, because at times like this, you take decisions without thinking, as a result you win “some” trades and loose most trades . At times like this, the best option is to clear your head totally (Yoga works at times). So do not trade with your head filled up with irrelevant negative stuff, be positive with a winners mindset. This is the major key to becoming a successful trader.
Here is another important trading tool;
A Good Broker
These Brokers aint Loyal! Not all of them though, but be careful out there. A lot of scam brokers are out there waiting for you to click the sign up button, I’m guessing you dont know who brokers are? Here’s a little brief on who they are; A broker is an individual or firm that charges a fee or commission for executing buy and sell orders submitted by an investor, its plain and clear. You get yourself a bad broker and you’re in a shit load of scam, this should not scare you in anyway; there are a lot of legit brokers out there. Like IQOptions, 24Options and a few others, little piece of advice, get yourself a good broker.
In addition, a good computer(not necessarily one with 32gb RAM) something a little bit moderate; an everyday business laptop would do. Also, try getting one with a large screen so you get to see a wider view of the market chart(you don’t want to scroll across the market chat for too long, before you make your analysis) . Finally, locate a nice quiet workspace where you can work uninterrupted. Trading takes tremendous concentration and interruptions generally cost money.
First of all, I would break this down a bit; futures trading is a form of paper investment where you speculate the price of a commodity.If you speculate, correctly you make a profit and vice versa. The commodity can be anything from currency to beans. You don’t have to hold the physical product for you to make money. In fact, you speculate the prices based on the contract of the product.
Who trades in futures?
There are two main types of people that trade in futures: speculators (You&I) and hedgers. The hedgers are manufacturers of the product. They trade to protect themselves in the event the price of the product changes. For example, a beans farmer would buy plenty of beans futures contracts when he expects the price of the product to shift.
Speculators(Investors) have an interest in a given product. For example, investors interested in the milling industry will buy flour futures. They don’t produce the product and often don’t have a connection with the products. All they are interested in is making money in the event the market moves to their advantage.
Benefits of futures trading
There are plenty of benefits that come with futures trading. Some of these advantages include:
Huge Returns: In the event, you make the right speculation, you stand to make a lot of money. This is because futures are highly leveraged investments. In most cases, the profits you gain from your speculation are multiplied tenfold and even more at times.
In the event the market goes against you, you can lose some, all, or even more than the margin that you had placed as a result; I would advise you trade Binary Options instead of Forex because you can only lose some or all of your margin there, not all of it. If the market goes according to your speculation, you make a tidy profit and get back your money.
No inside information: In other forms of trading such as stocks trading, some people have information about companies thus buy and sell their shares with inside information. This is unfair for people without the information as it results in heavy losses, while Futures trading doesn’t have this. At the end of a trading session, an official market report is released, and everyone interested can look at it. This keeps everyone at the same level as no one has more information than the other. Everybody gets rich!
In addition, future trading involves you working with papers; you don’t have to hold the actual product. This means that if you are trading with beans, you don’t need to buy beans and store it in your home or place of work. Unless you want to start a small farm, of course.
This is what you need to know about futures trading. Just like any other form of trading, futures trading has its ups and downs. Sometimes you can lose money, and other times make a soothing profit. Before you jump into it, take the time to study it very well. You can register here to learn more about https://tiatrading.house/register