Gold has been among the best performer instruments in 2016 gaining as much as 28.83% YTD. Gold is still trading within its secular bullish cycle started in the early 2000s; however since 2011 gold has been underperforming every other major asset classes, but this year’s updrift in gold gives us hope that we’re in the early stage of a new up-leg in the precious metal.
Going forward, you’re going to learn the best binary options tips on how to make money trading the next gold bullish trend and what is the most appropriate binary options trading system for the gold market. Gold is one of the most popular trade so far this year, but there is a very real appeal and fundamental depth to this asset. Gold is perceived as a safe haven instrument and since Central Banks around the world introduced negative interest rates this has sent investors into buying gold.
Six Binary Options Tips to Trade Gold
If you want to make money trading the gold market than these six binary options tips will help you increase your odds of success. Right now the gold is the easiest market to trade in and the easiest to analyze because it’s moving in a very clear and strong bullish trend. A binary options trading system can help you now to trade gold for lower amounts and higher returns because of gold’s higher volatility. Without further ado, these are the best binary options tips you can follow trading the current gold market:
Having a Plan
If you want to become a successful binary options trader you need to have a plan and a binary options trading system that will tell you when to get in and how to manage your trades. As long as you’re basing your trading decisions based on your binary options trading system you have nothing to worry about. One of the key characteristics of those that are profitable traders is they have a trading plan and they stick to it.
Trade Longer Time Frames
It’s very difficult to predict the price trend over a very short time frame you have to remember that you can always set the expiry for an hour, a day or even for a month, so you can set it for as long as you want, however the longer the time frame the higher your success rate it is. The recommendation is to hold the Binary Option for longer time frames and only apply your binary options trading system to the 4 hour time frame and longer time frames
Using Technical Indicators
Some technical indicators perform better than others in a market environment that is trading. The 200-day EMA is regarded as being one of the most influential moving averages in technical analysis for spotting the trend direction. This is by far the best binary options tip one can give you, which is to buy a Call Option every time the gold touches the 200-day EMA. This is quite a simple binary options trading system as it only requires the use of one indicator.
The 200-day EMA is a powerful tool that works with the Gold binary options trading system that will help you reaffirm the uptrend and also protect you from any potential reversals.
Trading with Channels
Channels are parallel trendlines that encompass a rising or a falling trend and is a compelling binary options trading system for trading the gold uptrend. Since the beginning of the year gold has been moving in a rising channel and with each touch of the channel’s upside and downside limits, a new trading opportunity emerges.
If we’re trading in a rising market like gold the most successful binary options trading system is to put more weight only on buying Call options, however, if we have a clear-cut channel we can safely buy Put Options as well.
Combine Fundamental and Technical Analysis
A comprehensive binary options trading system makes use of both fundamental analysis and technical analysis in order to understand what makes gold tick and price change as well as to time the market. If you look through history in 1970 the price of gold was only $37/ounce, while now it’s over a thousand dollars so gradually over the years we can spot a constant uptrend that correlates with inflation.
In today’s world, gold has become a safe haven asset and whenever we have uncertainty in the global financial market investors are rushing to buy gold. So, uncertainty is a driven force for the gold uptrend and it’s probably the best indicator to spot new trading opportunities. It’s desirable to use a binary options trading system that incorporates fundamental analysis as well.
Because gold is a commodity priced in US Dollar any move in the US Dollar will impact the price of gold. The price of gold is inversely correlated with the US Dollar in other words, when US Dollar goes up, gold tends to fall, but when the US Dollar goes down, gold tends to rise. The US Dollar/gold relationship is not straightforward and they can move in tandem as well, which is the reason why you can’t use the US Dollar/gold relationship in isolation but must be incorporated into your current binary options trading system.
When the Fed hikes interest rates to promote economic growth this, in turn, is bullish for the US Dollar and subsequently gold might go down. A good binary options trading system will take advantage of the US Dollar/gold relationship.
A profitable binary options trading system takes advantage of all binary options tips listed above, but as a trader, you need to exercise patience and only trade when all of the elements of your binary options trading system align together and signal a trade. If you’re struggling to make money trading binary options or if you’re just planning to trade at some point in the future, then this article hopefully will put you in the right direction.