If you are someone looking to open a trading account there is definitely aspects you need to consider so you are safe and so you can avoid as much risk as possible. With the markets going up so much, the Dow Jones reaching over over 14,000, people are starting to bring their money into the markets. However, this can be a hard time for them if price were to fall off against them after getting in this late. Keeping your money safe when trading is critical, but if you're not in then you won't be able to make money in the markets either. Get a Quote on the Dow right now.
The question is, will this rally continue through the rest of 2013. People are trying to get in the markets with a better price, because everything is priced so high. Binary traders don't need to worry about this to much because they're only trading whether the price will go up or down. There are so many other markets to trade during this rally, but if you're like most investors looking at the stock market is pretty much the main source. This includes the Standard & Poor's 500. Here is a look at the SPY chart. It is starting to show signs of head fakes, trying to get people in before moving back down. The issue is; if people get in late, and watch the markets go against them, this could start a full size market crash.
With the US government set to make tons of budget cuts, the government could bring the market to a standstill as well. Investors are waiting for this information, to make a better decision, as traders are still putting their money to work. All technical and momentum indicators are pointing to a consolidation time with the stair stepping pattern to the upside. Nothing is saying much about a big drop-off or crash.
Again, binary options is a great way to trade these markets when there's still no sign of which directions to trade. This allows you to take a trade on big stocks such as Disney, hoping the price will go up and be out of it at a moments notice. If you are stockholder of Disney you have to hold onto those shares watching the good days and bad. Hopefully price continues to go up, but at some point price does come back down to reality. We've all seen markets go up and crash, the question is how safe are you and how safe is your account.
Another question people are asking is why gas prices are so high again. People are wondering whether the price of gas on average will hit five dollars per gallon by the summer. Most people agree that it will, but there are a lot that think the price will get back down to three dollars a gallon. If you remember the crash in 2008, the price of oil dropped significantly during this time. Causing the price of gas to go down as well. Safe traders will take these trades only if they see a good price point to enter. Binary traders will look at oil as a commodity, but trade whether the price will go up or down in that particular time frame. You can trade oil at many of the binary brokers, here is one of them. Why wait for price of oil to go up two dollars, when you can make good money if it moves up by a penny.
Other commodities like gold and silver are still struggling right now. Prices have dropped significantly since their highs and continue to move in a downward direction. If the US markets and the US dollar fall off heavily, we could see a rise back up in gold and silver. You can trade gold binaries on a daily basis using the price action that you would normally use on a stock or currency pair. If you think the price of gas or gold will go up or down, you can trades within a 15 minutes and hope for the price to move in the direction you choose. You can base a lot of information on fundamentals, but when it comes down to taking an actual trade, you definitely want to use your technical analysis skills. These skills will come in handy when trading going forward.
The key to your success as a trader or having a successful investor account is to know what is happening in the markets. If you can trade safely playing the direction of the current trend and following the rules you should be okay. Don't let downward movements affect you so much. If you feel like taking short-term trades than you might want to look at binary options trading as a way to make more money in the financial markets.