TopicFree CCNA Study Guides
Many investors trade on the basis of their feeling of how the markets are going to move. This is one of the most bogus ways of trading and not always effective. It sounds easy and comforting but it is usually not applicable. It is thus always wrong to trade without a strategy. If you are not taking the data and the analysis The Freedom Circle that is put together by some of the best minds in the business then more or less it is gambling! Basically trading on mere emotion is like gambling. You stand a 50-50 chance of making it. Traders tend to decide what action to take on the basis of technical analysis made at support and resistance levels along with the timely economic data usually released on quarterly basis. In the case of binary options which have a comparatively longer time of expiry the strength of the assets can be found out by a fundamental analysis before.
Options trading tends to confuse many people, especially people who are new to investing and trading. While there are complex formulas involved in options trading, almost all of that stuff takes place behind the scenes and the person doing the trading doesn't really need to know any of it. In theory, options are very simple: they are basically a bet that, as of a certain time in the future, the price of a stock will be above or below a specified price (called the strike price).So people attempt to profit from buying and selling options in much the same way that they try to profit from buying and selling stock, with different strategies based on whether they think price will go up or down in the future.