Binary trading offers the possibility of entering the market well. The point is to make a trade and let the position expire in the money. This means collecting money. On Monday mornings, a pattern appears to have emerged at the NYMEX Exchange in New York City, USA. Gold is regularly sold off at or soon after the 8:20am EST morning open.
It is difficult to believe that such a regular pattern can emerge, and there is speculation as to its’ causes. Some speculate that “powerful interests” want to muzzle gold at the beginning of the trading week to keep the price from rising upward momentum, as well as to make capital think twice before entering the gold market.
Who is doing this selling at the market open? Is it big banks making profit on large short positions? Is it the Fed, through agencies, containing the gold price so that the market does react badly to US dollar devaluation by the QE program? Nobody knows for sure. Perhaps some form of market manipulation is taking place!
This scenario may be one which will allow for interesting binary option trading. Since, we know that before the open, the market is being sold off hard that may be the time to buy a 30 minute binary Put, or conversely if you want to collect premium, then sell a binary call. When the market sells off, you will make money in this 30 minute period. Later, as NYMEX opens, there is a lull, and then recovery. At that time frame, when there is a lull, you can break for coffee, and watch how the market recovers. Once recovery momentum sets in, then buy a binary call or sell a put.
The gold market has developed this pattern of trading, and by participating in it, you open yourself to profits. If you don’t feel comfortable timing this scenario by yourself there are gold binary option’s signal systems for you to consider. Some systems include Gold MMX, Ingot, Gold Vega, Gold Veinous 4, and Big Bullion. These are not brokerages, but firms which offer you programs when to enter trades, and at what target price. They offer, amongst others, either a trading systems, a swing trading system, or trend trading system. Each of these features different strategies and you the potential trader will need to examine if their services are worth it to you.
However, the best trading system is one that you develop on your own by observing the market. If the broker you are working with has a demo account, you can first try your luck trading the first two hours of the day with the NYMEX gold market. Place demo trades one hour before the market opens, and one hour after the market opens, and see your results. You just may have found a pattern of great profitable trades.