Hello Tradres,
When talking about the financial world, the financial market, the most common mistake is when people think that decisions made are based on rationalism, in fact there was a great research made by two Nobel prize professors Daniel kahneman and Amos tversky, (they received Nobel prize due to this research), I warmly recommend you to read about this, it will change the way you think and will assist you to become a successful binary option trader, so, they claim that all of our decisions made are based on emotional triggers , the best example is when you lose some several trades in a row, you concentrate in bringing back your loses as soon as possible, in most cases it brings more loses, in a rational decision making you will not try to get back your loses immediately, you will wait for the best trigger by knowing it may not arrive at the specific time.
This is one example when you feel (emotion) you have to get your money back from the market you just lost to, on the other hand you may find yourself gaining money on several trades sequentially, it may feel (emotion) empower by the sense and take unnecessary risks…that may sum up all of your winning trades into a negative.
So it’s all about emotions and it’s the same with whats happening with the current elections, everything is based on emotional nothing rational, the market believe that Trump will do no good to the US economy that’s why when the race is getting close while Trump stakes are getting high.
the market shows a drop in all of the major currencies, indexes (S&P, Nasdaq) and commodities such as the oil and of course – Gold, what i like about the gold is that it contains a factor of fear, meaning, when the ground is not so stable and the risk on the market rises, the goal rise as well, and this is what we experience now, the oil for example is reacting the same with fear, but in some cases the fear is pushing prices up, this time it goes down.
We are 3 days behind and no one can really tell for sure who will win, eventually, this is a great news for us the binary option traders, by the way, if you a beginner to the binary option trading market, i’d open an account just to be witness for such big event, the market can get really crazy by the end of this week, if you like you can check out our list of brokers we gathered here and we found them to be the best binary option platforms exist, back to the opportunity in such an event, most of the chances the market will be very much volatile at the day after the election date, i would not try to guess the direction of prices what i’d do is using short term strategies, some of them you may find here.
Let’s take a look at the market start with Gold, my opinion for the gold since couple of weeks from was that the trend is going up, it’s simple, i recognized the support line that gold is not suppose to break, i chose to show it on the weekly chart
Gold Weekly
Myguess is that even if Hilary will win and the market will have confidence back it will remain on its uptrend.
This week as for the S&P, EURUSD, Oil, GBPUSD and rest of the majors, anything can happen, it’s a critical week, so again, you might want to take advantage of it only for short term tradings
EURUSD Daily
Oil Daily
Good luck with your tradings.
