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  1. #1
    Administrator Martin Kay's Avatar

    The Four Fathers of Binaries – Commodities !!!

    Hi guys! Bogdan presented new article on his commodity trading experience and trading tips. Check it out!

    Originally posted by Bogdan G. Click here for the full review.


    Trading Commodities: Facts

    One of the best things about Binaries is that you can trade them on a lot of underlying assets and in a way; they merge all the important financial markets together. By using a single platform, you can trade Binary Options on Currencies, Stocks, Indices and Commodities. Today we are going to focus on Commodities as a tradable asset.

    Oil Overlook

    Trading Exchange: NYSE, NASDAQ, NYMEX and other important exchanges
    Trading Hours: Monday – Friday but your binary broker might have different trading hours for this asset so check with them for the exact times
    Brokers offering Binary Options on Oil: Almost all Binary brokers offer binaries on Oil

    My Advice on Oil in 50 Words: Its price is highly influenced by wars (during times of war more Oil is used for the Army) and by Oil spills: if a sea platform owned by a leading Oil extracting company is hit by disaster, that company will extract less Oil so the Supply will go down, making price to go up.

  2. #2
    Specialist Member RCox's Avatar
    A huge factor to watch when dealing with oil is the weekly inventories report, as this can have a pretty substantial effect on the overall sentiment that is seen for oil during the remainder of the week. This report comes on Wednesdays and is the best short term indicator of how supply and demand is performing in the markets. These reports can seen counter intuitive, as a "strong" report (higher inventories) is actually bearish for the commodity. So, the reverse would be true for a weaker inventories report. Issues like this are some of the main reasons why trading commodities is different from many other asset classes, as there is no individual company or country to watch.

  3. #3
    M.J
    M.J is offline
    Veteran Member M.J's Avatar
    Is it forefather or four fathers?

    Article is , as expected, great. Usually technical analysis is considered to be more important than fundamental analysis. But in case of commodities, I think fundamental analysis is equally important. There r so many factors that can change commodity price for example :- Political instability in oil producing countries, demand and supply, substitutes of Oil, Regulations, Natural disasters etc.

    My prediction about oil is that despite its fall below 85.4, it will rise. Drop in value of u.s dollar is also causing oil to rise. Another important factor is China's industrial growth which will increase oil demand. But technical indicators dont show any sign of bullish trend in coming days.

  4. #4
    Master Member Bogdan G's Avatar
    Quote Originally Posted by M.J View Post
    Is it forefather or four fathers?

    Article is , as expected, great. Usually technical analysis is considered to be more important than fundamental analysis. But in case of commodities, I think fundamental analysis is equally important. There r so many factors that can change commodity price for example :- Political instability in oil producing countries, demand and supply, substitutes of Oil, Regulations, Natural disasters etc.

    My prediction about oil is that despite its fall below 85.4, it will rise. Drop in value of u.s dollar is also causing oil to rise. Another important factor is China's industrial growth which will increase oil demand. But technical indicators dont show any sign of bullish trend in coming days.
    Thanks M.J. It's four fathers but it is intended as a pun too. After all, the 4 assets are the forefathers of binary options

  5. #5
    Veteran Member uj.forex's Avatar
    According to 'my' analysis and forecast, I am bullish for Gold in long-term.... The USD would fall while the gold would keep on rising.. And yes, don't think that the U.S.A would be worried about their devaluing the dollar through QE; in fact, they might enjoy doing so as Gold constitutes to around 76% of their foreign reserves... so yeah, even the bearish dollar would be beneficial for the U.S....

  6. #6
    Solid Member Peter Green's Avatar
    I am not bullish on Gold especially in short term outlook. I think we are in a corrective mode for several months and this will continue at least in the beginning of 2013, so I don’t have great expectations on its performance and mostly search for opportunity to short it. My long term predictions are the same as yours uj.forex but it could not happen soon. The Crude Oil is also in a flat market and we could not see stronger trend soon there. So I prefer to hunt for short term opportunities, like today drop in Gold. It was hudge!

  7. #7
    Master Member Bogdan G's Avatar
    Quote Originally Posted by Peter Green View Post
    I am not bullish on Gold especially in short term outlook. I think we are in a corrective mode for several months and this will continue at least in the beginning of 2013, so I don’t have great expectations on its performance and mostly search for opportunity to short it. My long term predictions are the same as yours uj.forex but it could not happen soon. The Crude Oil is also in a flat market and we could not see stronger trend soon there. So I prefer to hunt for short term opportunities, like today drop in Gold. It was hudge!
    I must agree with Peter about short term vs. long term. I find no value in predicting long term movements as I am not an investor or a long term (years) trader. I just care about current and near future movements. Those are the ones that will make me money.

  8. #8
    Master Member vinayakm's Avatar

    !!!

    Quote Originally Posted by Bogdan G View Post
    I must agree with Peter about short term vs. long term. I find no value in predicting long term movements as I am not an investor or a long term (years) trader. I just care about current and near future movements. Those are the ones that will make me money.
    Well said! The short term is what we need to focus on here. And in the short term, expect gold prices to continue to fall as the US economic data has been pretty good with the US economy actually growing 3.1 percent in Q3.
    As for commodities like oil, the geopolitical sphere will detail a lot of what will happen with oil prices. The dynamics in Syria and Iraq need to be watched carefully by investors in oil.
    Attached Thumbnails Attached Thumbnails Vinayak Maheswaran_0.jpg  

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