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BINARY OPTIONS TRADING REVIEW

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By: Adam Stone
April 24th 2014 6:45am GMT, London UK
 
US equity market were unable to sustain the level and pace of recovery seen throughout most of the last week and a half. Binary options traders have been flooding back into US equity indices and now, all of a sudden, it seem to have been curtailed. The S&P, the main US stock index, dropped in a very choppy and volatile day of trading yesterday. The index lost only 0.22%, which isn’t very much, but the behavior of the index is what was more interesting in contrast to the directional bias.

The index was up and down all day and for binary options traders, such behavior could mean big trouble for most binary traders but it shouldn’t. When the markets begin to show an edge and a choppiness about them, it’s time to adapt. Many currencies and commodities exhibit this type of trading style throughout the normal course of the day, but most expect a smoother run from indices. So when things suddenly change, it might be hard to change ourselves along with that which we see in the markets. There is, however, never a reason to fight against the trend in the market and if that trend is a jagged one, you need to go with the flow or walk away.

For the S&P, the current break from norm isn’t one that should obstruct your trading day however. Binary options traders should be readily disposed to trading such markets especially seeing as how the support and resistance levels weren’t even tested. The up and down tendencies of the index yesterday should have meant only one thing for traders; opportunity. With no worry of a break in either direction, playing off the highs and lows of the day was the right methodology for making serious profits.

So looking at the trading day ahead, binary options traders should be looking for similar situations to turn profits. Consistency may be hard to find though. Binary traders will find it hard to find a solid trend in the markets given the current state of affairs in the US. But looking at individual stocks like Facebook (FB) and Apple (APPL), binary traders may just opt to wait for the indices to bust loose higher.

Both of the stocks mentioned above are expected to open higher as they released better than expected results for the first quarter of the year. APPL beat estimates and should reach and surpass 2014 highs. As such, binary traders should start looking for up options early in the session. Facebook was on similar footing and traders will likely see a gap formed on the daily charts. This gap will of course close eventually, but should aid the support levels and allow binary options traders to use the top of the gap as a pivot level. This is the case for both stocks. So be prepared to take full advantage as soon as the stock markets in the US open and allow the profits to start washing over you!

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Adam Stone
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Adam Stone

As COO of GOptions, my first and foremost goal is to provide traders with the most up to date info from the markets. I have been trading the markets since 2004 and have been involved with stocks, binary options, and forex trading since then. I have had no formal market education and pride myself on a self taught approach to everything related to trading. I try to focus though on both the technical and fundamental aspects related to each trading day and bring forward the most important aspects of risk/reward in the market.
Adam Stone
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