Trading sites typically give traders the option to trade in one of four asset categories: stocks, currencies, commodities, and indices. Each of these asset types is different and each gives a trader ample opportunity to earn profit. Let’s examine a few different strategies that are often paired with particular asset types in order to maximize profit opportunity.
Getting it Done with Stocks
Stocks are among the easiest types of assets to trade, because many first-time traders are already familiar with their machinations from traditional stock markets. Stocks are prone to traveling up and down in price for extended periods of time, and the market sentiment and investor mood surrounding them is quite easy to analyze. Investors who trade in stocks must train themselves to be on the lookout for any type of business report, especially quarterly reports or P&L earnings reports, so that they can properly analyze the potential price movement in a particular company’s stock.
Commodities for the Win
Commodities concern actual physical materials like corn, wheat or gold and are most often traded as futures with three-month time windows. Price activity is high in the early days of the three month contract, and movement remains variable until about the midpoint of the three months, after which it slows to a crawl. Traders need to remain vigilant in their world news research if they are trading commodities; many different events can affect physical goods, and investor sentiment can change rapidly and price dips or rises can occur dramatically. Monitoring market news is a key aspect of commodities asset trading.
Currencies are Highly Traded
Currency-based trades are very common in binary options platforms, but traders must be aware that binary options trading with currencies is not precisely the same as Forex trading. Digital options currency trading holds several advantages, particularly the fact that currency volatility is something to be embraced rather than feared. Volatile currencies allow for major profits if you play your hand correctly! Once again though, investors should monitor news concerning markets as well as certain countries.
You Can Watch Indices (Indexes)
Each index is slightly different: some may hold as few as 10 companies, whereas some (like the S+P 500) stockpile up to 500 companies. Trading in indices is very similar to trading in stocks, but with a notable lack of stock volatility. Make sure to analyze the larger companies and stocks present in your indices, as these will likely be the assets that will affect the overall movement of an index. Watch for government reports or major announcements from large companies present in your chosen index.
Each asset class offers a unique blend of opportunities for profit. If you are a novice trader, diversification is a very good idea. You never know which asset class will suit your particular trading strategy best, and platforms offer so many different mechanisms with which to make money from all types of assets. As you become an advanced binary options trader, you’ll know just where to turn for the best profit daily profit opportunities.
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