As of today, online earning on binary options trading is becoming more and more popular. Working from home, you can make a good profit from gold. To make this profit, people sometimes need to work a whole day or even a month.
So, let’s talk about binary options trading.
To generate a profit from gold, you do not need to be a qualified economist. What you need is to watch or read news on the Internet, forecast accurately and get a profit.
The binary option trading involves predicting a future price of some product at a certain point of time. If the result is in line with your forecast, you get a 70% profit.
Even if the price ticks just by 0.001, even in this case you make your 80% net profit.
How to generate a profit from gold
Each trader chooses his own direction or instrument which he works with or develops. One of these instruments is gold.
To make a profit from gold, you need to understand what can impact the price.
Binary options brokers offer Gold as an underlying which is traded on the COMEX (Commodity Exchange) and the New York Mercantile Exchange, NYMEX.
COMEX is a division of the stock exchange responsible for gold, silver, copper, aluminum etc.
While trading this instrument, you need to have in mind the price of USD as it is in inverse ratio to the price of gold.
This means that in case USD price rising, the price of gold falls and vice versa, drop of the U.S. currency pushes up the price of the precious metal.
Demand and Supply
Concerning demand and supply, you should track the gold-mine output by the world’s top producers. You need to mark the days in the economic calendar when the output, refining figures, export and import reports are released.
Beside supply figures, you should track demand. You need to follow what investors do. You have to know how much gold is sold and bought. This underlying security like the currency pair GBP/USD has high volatility.
Active selling is followed by the price decrease as additional volumes are offered on the market. The larger amount is bought, the higher price is.
Gold holders are states as well. This is the major reason why the price of gold doesn’t depend on the events in a particular country as in case of currencies. The price of gold depends on what happens around the globe. This requires from you to pay attention to different news, and it takes more time comparing to trading other derivatives.
In addition to actual figures from the mining companies, you need to track forecasts because they can have a significant impact on the prices.
Experienced traders prefer to trade this precious metal as it doesn’t depend on the political and economic events in a single country.
Many traders invest in gold after they do technical analysis using indicators on the charts and such instruments as patterns of technical analysis.
I don’t think this method is ideal. However, it can be used as the price of gold depends on USD, and technical analysis is of great importance in currency trading.
I’m pretty sure that any signal of the technical analysis should be compared with the signals of fundamental analysis, except for the cases when you put in money for such short periods as a minute to ten minutes.
If you want to earn on gold, you can do it practically with any brokerage company. However I recommend that you deal with the best brokers, for example, with AnyOption.
I made a 80% profit from gold because the price behaved in line with my expectations (it increased during the period I selected that is 14 minutes):
I invested $120 and made $216. My net profit constituted ($216 — $120) $96 or 80% of the amount I put in. This is not bad for a period of 14 minutes!