Full Review of TraderXP Binary Options Education

 After looking at a string of brokers with disappointing educational resources I was surprised with what I found at TraderXP. In fact, at first glance I was a little overwhelmed because there is just so much to see. I usually have to hunt all over a broker site to find any resources or educational material and most of what I find is completely sales oriented. TraderXP made it very easy to find all of their material, and it is all very useful. One thing to keep in mind is that TraderXP is a SpotOption powered broker so some of what you will find here is no different from any other SpotOption broker. 

TraderXP At First Glance

 The first thing I noticed was how bright and inviting the website was, it is really well put together. For someone seeking professional information the feeling I got at first glance was very reassuring. TraderXP has links to education and trader resources displayed prominently throughout the site starting with the top navigation links, moving through the feature box at the top of the page and following through all the way down to the bottom navigation links.

All of the standard educational features you find with a SpotOption powered broker were present plus so much more. This broker offers 24/7 support, live chat with coaches, a free traders guide and market reviews. This is nothing different than any other site but it was so much easier to find. These basic features are listed up at the top of the page, in the feature box just under the top navigation and again in the bottom navigation. Again, these features are nothing special or exclusive to TraderXP, they are just easier to find than almost any other site I have reveiwed. I took this as a positive since they seem to be serious about teaching new traders how to use the website and where to find the proper resources.

Among what I call the “standard” educational features were other resources I have seen on other broker sites. One difference between TraderXP and the other brokers is that TraderXP has all the basic features, not just some of them. TraderXP has the basic landing pages describing binary options, the Option Builder and 60 second options. TraderXP also has a standard glossary, FAQ and the 1-2-3 how to trade binary options that all SpotOption binary brokers have.

What Sets Trader Apart From The Rest?

 One thing that sets TraderXP apart from other SpotOption brokers, and other brokers in general, is the video portion of the education.  Not only is there a short video on how to use the website there is a series of videos on how to trade binary options. Called the “Live Course” these videos are a real plus, especially for beginners, and mesh well with the free E-book trading course. The videos cover the basics of trading as well as risk management and trader psychology.  The videos are not an end-all be-all to trader education but they do provide a serious look at how to approach trading seriously. It is too easy for a beginner to start trading without a good foundation; these videos are a great way for newbies to begin building a solid foundation or for a more experienced trader to strengthen theirs. What is also really cool is that the videos are free and require no deposits or even to sign up.

Another part of TraderXP’s educational program that sets it apart from other brokers is the “Expert Opinion” link in the bottom navigation. Most brokers have some form of newsletter, market update or other source of analysis for traders but are usually hidden and can only be accessed with an account. I have even found some market updates that were so out of date as to have no bearing on current market conditions. Not TraderXP. The reviews here are available through the home page to any trader with interest. The review recaps major world events, provides some technical analysis and also lists economic releases scheduled for that day and week. The most important thing, aside from the content, is that when I checked on the review it was for the current week and the current day.

My Final Thoughts On TraderXP’s Trader Resources

 I think TraderXP has done a great job with trader education, especially for newbies and beginners. I think they are top notch and at least a step above anything else I have encountered, particularly in the realm of SpotOption powered brokers. The website is easy to use and makes the information easy to get to. Plus, it’s all free. The videos, the ebook, the commentary, the library….all free. Even if you don’t want to use TraderXP as your broker you can still benefit from the excellent job they have done providing entry and intermediate level resources for binary options traders.

Michael is using the Communitraders platform for all of his tips. Follow along with the Geek’s progress in the forums.

The Market Sets Up For Bounce Ahead Of Fed Decisions

World markets began this week with a rally. The Asian markets, led by the Nikkei, rose more than 2% followed by similar gains in European indexes. U.S. futures trading was not unaffected and also showed a nice gain going into the market open. This is a big week for the markets and so far it looks like the markets are expecting it to be a good week as well. This is one of the heaviest weeks for data of the month and it also includes an FOMC meeting and interest rate decision. There is not much expectation for any changes of policy but there is a lot of expectation the Fed will allay some of the fear creeping into the markets.

Data released Monday was favorable for the rally. Empire manufacturing was better than expected and so was the housing index. The housing index, expected to come in around 45 was actually 52 and shows signs of expansion in the sector. Even without the FOMC meeting this would be a potentially market moving week. Other data being released includes existing home sales, new home starts, permits, CPI, PPI, jobless claims, Philly Fed and leading indicators. Each piece of the economic puzzle also has the capability to move the market in the short term.

1. S&P 500 Setting Up For A Bounce

 S&P 500

Call/Put = Call

Entry = below 1640

Expiration = 1 Week/1 Month

The S&P 500 is setting up for a text book long term trend bounce. This technical event is supported by a strong buy signal from the stochastic oscillator. The index is moving up from the long term trend, trading above the 30 moving average and is also supported by MACD analysis. The MACD is currently on the bearish side of the signal line but my read is showing support here as well. In the short term there is resistance around the all-time highs at 1687 and in the near term markets may be volatile into the end of the week.

Because of the signal being generated here I am trading two positions on the SPX this week. One will be for a one week expiration and the other for one month. My target entry is below 1640. This is close to the 30 day EMA, an area I see the markets trading around up and into the FOMC statement release. There is some data coming out tomorrow but I don’t think it will be enough by itself to tank the market. The next significant event for the week will be the Wednesday FOMC release. After that Thursday and Friday will be very full.

2. The Yen Reaches The Original Target

 USD/JPY

Call/Put = Call

Entry = Below 95

Expiration = 1 week

The yen has been strengthening against the dollar over the last few weeks as traders and investors have taken profits out of the market. The USD/JPY currency pair may now be at a point where it can find some long term support. It is currently trading just shy of 95, the original target set by Shinzo Abe. If we look back at the charts we can see 95 has been one of the most important levels over that time period. All four of the longest candles, both bullish and bearish, occurred at or near 95. They also occurred at key junctures of the nomination, election and confirmation processes for both Abe and Kuroda, as well as the BOJ policy changes. Apparent lack of support from the two of them have helped to strengthen the yen to this level but I think that this is the level the BOJ will defend. It makes sense, Abe and Kuroda are cohorts in this scheme to devalue the yen. I am trading calls on the USD/JPY with a target entry below 95 and a one week expiration. I will be watching closely and may add another position later this week so keep an eye out on Communitraders.

3. Still Bearish On Gold

 Gold

Call/Put = Put

Entry = Above $1385

Expiration = 1 Month

My Trading Advice

I am still bearish on gold. I am still looking for the retest of the lows around $1326. My analysis still supports this move. Gold will likely be a little volatile going into Wednesday afternoon but should find direction once the FOMC statement is out. I am trading puts with a one month expiration and a target entry above $1385.

4. A New Perspective On The Euro Trade

 EUR/USD

Call/Put = Call

Entry = Below 1.3350

Expiration = 1 week

My Trading Advice

I have been bearish on this pair over the last few weeks and not done very well with it. The pair is trending up now so I am changing my trading stance to suit. The pair is trading above an important Fibonacci sup/resistance line and looks good for a move up to retest the recent highs around 1.3500.

I am trading calls on the EUR/USD with a one week expiration.

5. Faith In Jamie Daimon

 JP Morgan

Call/Put = Call

Entry = Below $54

Expiration = 1 week

My Trading Advice

The markets appear to still be in rally mode and the financials are still leading the charge. JP Morgan is trading near the 30 day moving average with bullish technicals and room to move up. The stock and the sector have some technical resistance ahead of them, including the FOMC statements, but I think that it may be discounted. The Fed signaled last week that old Ben Bernanke would soothe the markets so I expect to see some clear sign of when, where and how tapering will begin as well as supportive commentary on the markets. I am trading calls on JPM with a one week expiration and target entry below $54.

More Tips by the Geek  – 6/17-24/2013 Trading Tips On Forum.

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That’s it for this week; Michael will be here next week with fresh trading tips. Meanwhile, we will be testing Michael’s tips to see what kind of an “expert” he really is. All trading assets and expiry times featured in Michael’s trading tips are based on CommuniTraders Binary Options Trading Platform.

 Think you know better than our experts?? Have a Second Opinion??  Post your trading advice on our Trading Tips Forum or at the bottom of the page! Join CommuniTraders and Start Trading,  only on BOTS.com new growing community.  

*** Please read Binary Options Weekly Trading Tips guide to understand better how to use the trading tips. Start Smart with BinaryOptionsthatSuck.com.

1. Group of 8 Meetings

06/17/2013 – 06/18/2013 – Monday and Tuesday (all day)

What will it affect: the G8 Meetings can have an impact in more than one market, depending on the topics discussed.

Forecast: no estimate is made for this type of event

Where to keep an eye on the event: CommuniTraders, Forex Factory, Bloomberg, Reuters, DailyFX

Why traders care and what to expect: Finance ministers and heads of Central Banks from the G7 nations (Italy, France, Germany, UK, Japan, Canada and US) are going to meet in Northern Ireland to discuss matters of interest related to the Euro Zone crisis. Although it is not a member of the G7, Russia will also participate as the 8^th member. The meetings are closed to the press but participants sometimes talk to journalists during the day and their comments can generate volatility. An official statement is released once the meetings have concluded.

Directional bias:  UP if solutions are found to the Euro Zone crisis or at least some optimistic developments take place

                                   DOWN if the G8 meetings will be characterized by back and forth discussions, without substance and results

How I would trade this event: I will trade according to my normal strategy, but before I place any trade I will check the mentioned websites to see if any developments that can influence my trade took place.

2. German ZEW Economic Sentiment

06/18/2013 – Tuesday at 09:00 am GMT

What will it affect: EUR, DAX

Forecast: 38.1 from the previous of 36.4

Where to keep an eye on the event: CommuniTraders, Forex Factory, Bloomberg, Reuters, DailyFX

Why traders care and what to expect: The ZEW survey draws its importance from the fact that it is based on the opinions of about 275 professional investors and analysts who are asked to rate the medium term economic and business conditions. Due to the nature of their work, they are well informed and aware of the factors that could influence the market.

Directional bias: UP if the actual value is above 38.1

                                  DOWN if the actual value is below 38.1

How I would trade this event: I would buy an hourly Put on EUR/USD and one on DAX if the value will be below 35.

3. United States Consumer Price Index (YoY)

06/18/2013 – Tuesday at 12:30 pm GMT

What will it affect: USD, US indices, some US Stocks

Forecast: 1.4% from the previous of 1.1%

Where to keep an eye on the event: CommuniTraders, Forex Factory, Daily FX, Bloomberg, Reuters

Why traders care and what to expect: Consumer spending is a vital part of the US economy, making up for about 2/3 of all activity and is of course closely related to the price that consumers pay. Furthermore, consumer prices are closely related to the overall inflation because a higher price paid by consumers indicates a decrease in the purchasing power of the currency (inflation). This can lead to a rate change as a counter measure and this is the reason why usually higher CPI numbers strengthen the US Dollar.

Directional bias: UP if the actual value is above 1.4%

                                 DOWN if the actual value is below 1.4%

How I would trade this event: I would but an hourly Call on USD/JPY if the value will be higher than anticipated.

4. Bank of England Meeting Minutes

06/19/2013 – Wednesday at 08:30 am GMT

What will it affect: GBP, FTSE

Forecast: 0-0-9 

Where to keep an eye on the event: CommuniTraders, Bloomberg, Reuters, DailyFX, Forex Factory

Why traders care and what to expect: The Minutes contain the details of the MPC members’ voles on the latest interest rate decision and also important insights regarding the reasons that determined their votes. In the 0-0-9 format, the first number shows how many members voted for an increase of the rate, the second number shows how many voted for a decrease and third is the number of members who voted for holding the rate. The Minutes often contain clues about future rates and market direction.

Directional bias: UP if the Minutes are more hawkish than anticipated

                                  DOWN if the Minutes are more dovish than anticipated.

How I would trade this event: I would buy an hourly Call on FTSE if the Minutes will contain hawkish information or clues about a future rate increase.

5. US Federal Rate Decision

06/19/2013 – Wednesday at 6:00 pm GMT

What will it affect: USD, US indices

Forecast: unchanged, 0.25%

Where to keep an eye on the event: CommuniTraders, DailyFX, Bloomberg, Reuters, Forex Factory

Why traders care and what to expect: The importance of the Rate decision is already known and it’s a high one but at the same time, the Federal Open Market Committee (FOMC) will release a Summary of Economic Projections and half an hour later, Fed Chairman Ben Bernanke will hold a press conference. First he will read a pre-written statement and then he will answer journalists’ questions. This second part is known to be the main market mover.

Directional bias: UP if the Rate is increased or if the Chairman has a hawkish attitude

                                  DOWN if the Rate is decreased or if the Chairman has a dovish attitude

How I would trade this event: I would wait for a clear direction and trade only after the press conference is over.

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Keep Tracking of the Upcoming Binary Options Trading  Events on CommuniTraders Social Trading Platform!

Note 1: The times, dates and values can change during the week. Keep an eye on the mentioned financial websites for any modifications.

Note 2: The Euro Group Meetings take place Thursday and BoJ Governor Kuroda holds a speech on Friday at 06:35 am GMT

Stock markets fall into the end of the week as stimulus programs see limited life span.  Reductions in QE will lead to stronger Dollar, weaker stocks.  Even risks make weekly forex trades too risky, until FOMC result is known.

Weekly Binary Options Briefing:  All Eyes on the FOMC

Stocks closed lower at the end of last week as profit taking and position squaring have taken valuations off of their long term highs in marked reversals.  Most of the market pessimism has centered on the fact that the US Federal Reserve will announce reductions in its monthly stimulus program, where $40 billion in Treasuries and $45 billion in mortgage backed securities are purchased as a means for injecting extra cash into the country’s monetary base.  Official comments in these areas have been mixed but what cannot be denied is that there is a growing voice within the Fed that suggests monetary stimulus is no longer necessary to support the economy.

        The next FOMC policy meeting will be held on June 18-19.  Currently, analysts and investors are left with vague comments with regard to what will be the Fed’s next intentions.  This essentially means that whatever the outcome, some portion of the market will be surpised and wrongly positioned.  So, this also means we will see a large pickup in market volatility once the Fed finishes its meeting and releases its closing statements. 

The Week Ahead    

 In the week ahead, we are not likely to see many major shifts in price trends during the first half of the week.  Once the Fed meeting completes, the main question will be whether or not (and to what extent) the Fed will reduce its monthly stimulus spending.  If no changes are announced, stock markets will rally and the US Dollar will weaken.  If significant cutbacks are signalled, stocks will continue the declines posted last week, and the US Dollar will likely rally to new highs for the month.

My Trade Ideas (Trade on CommuniTraders):

1.  The next week’s FOMC meeting puts too much uncertainty into the markets for weekly forex trades, so this week I will base trades ideas on stocks using longer term fundamentals.  First choice can be seen in Biogen Idec (BIIB), which has consistently beat market estimates for both earnings and revenue.  This is a contrarian play, as the stock saw a major sell-off last week.  But with prices finding support at the 38.2% Fib retracement of this year’s rally, we are inline for a resumption of the uptrend as long as the 200 level holds.  Look to buy monthly CALLS in BIIB at 210, targeting a long term retest of its all-time highs.

2. On the short side, I will be looking to bet against AT&T (T).  The stock has recently met resistance at its 52-week high despite posting quarterly earnings that were lower than analyst expectations.  Recent downgrades from S&P show that the stock has limited upside, and this looks even more true when we look at the stock from a price perspective.  Overhead resistance can now be found at 39 while we have no significant support until the mid-20s region.  And all this points to excellent risk to reward when looking at sell positions.  Look to buy one month PUT options in AT&T at 36.10.

  Don’t forget that I have started using the Communitraders platform for all of my tips. Follow along with my progress in the forums.

Standard & Poors Upgrades U.S. Credit Outlook To Stable From Negative

 The early morning release of Standard & Poors credit upgrade for the U.S. gave futures a big lift. This upgrade, coming on the heals of the NFP report, helps solidify the recovery. It also does this without raising the question of when tapering will begin. With an immediate start to tapering off the table for a while I am expecting the S&P and the other major world markets to return to the longer term trend. For the S&P this means continuing it’s bounce from support. Futures responded very favorably to the announcement and that favor carried over into the open.

Japan was another big event. The Japanese released their final revision for 1^st quarter GDP and surprised the market with a better than expected number. This surprise renewed faith in the Abe/Kuroda economic plan for Japan and sent the Nikkei up close to 5%. This market is displaying high volatility which makes it tricky for short term trading, however, the long term trend is still up and today’s move points to a retest of recent highs and a good signal for longer term traders. European shares began the week with uncertainty. Signs from the U.S. and Japan are good, now its time for the EU and Europe to follow suit. We will get some data from EU nations this week in the form of trade balance, CPI and PPI figures.

1. S&P 500 Returns To Trend

S&P 500

Call/Put = Call

Entry = Below 1650

Expiration = One Week

 My Trading Advice

The S&P 500 is displaying a fantastic stochastic buy signal on my daily charts. I use the standard setting so it’s easy for you all to follow along. Adding to this technical signal is confirmations in the form of a long term trend bounce and a break above the short term moving average. The 1650 level appears to be near term resistance for this week so it is the level to watch. Long term momentum is bullish so this level should not put up to much of a fight. Longer term there is risk of a top forming at this level but the index is likely to retest the recent all time intra-day highs around the 1680-85 level.

For now I am still bullish and trading calls on the index. My target entry for the week is below 1650 with a one week expiration. I will also be watching out for signs of topping or reversal, especially once the index trades back up to the all time highs. Near term support exists at last weeks closing price around 1643 and the short term moving average around 1630.

2. Dollar Gains Against The Euro

 EUR/USD

Call/Put = Put

Entry = Above 1.3190

Expiration = One Week

 My Trading Advice

The euro had been gaining ground against the dollar as fear of Fed tapering sapped interest in the greenback. The NFP release has changed all that. Maybe more importantly the U.S. Unemployment rate has changed that. With the data showing a strong economy, but one that is not too strong, and unemployment above the Fed’s sweet spot tapering is off the table for now. The dollar should resume its upward trend versus world currencies which means the EUR/USD will go down. I am trading puts on the EUR/USD with a target entry above 1.3190 and a one week expiration.

3. Gold Breaks Support

Gold

Call/Put = Put

Entry = Above 1380

Expiration = One Week

 My Trading Advice

Gold broke support. The same figures the help support a stronger dollar and U.S. economy also help to depress gold prices. Now that the $1390 level has been breached I think the retest of recent lows near $1326 I have been calling for is more likely than ever. I am trading puts on gold with a target entry above $1380 and a one week expiration.

4. Hurrah’s For Abe-nomics!

 USD/JPY

Call/Put = Call

Entry = Below 100

Expiration = One Week

 My Trading Advice

The Japanese reported better than expected GDP and sparked a rally driven by renewed faith in Abe-nomics. Selling and profit taking had curbed the slide in yen value created by Abe and Kuroda. At the same time there was little evidence that the loose Japanese fiscal policy was working. The GDP report laid to rest those fears for now and sent the Nikkei up 5% and the USD/JPY up by close to 2%. It looks like the long term trend is back in action. I am trading calls on the USD/JPY with a one expiry and a target entry below 100.

5. JPM May Be My New Favorite Stock

 JPM

Call/Put = Call

Entry = Below $54.50

Expiration = One Week

 My Trading Advice

Financials were leading the market, the long term rally is back and JPM looks good for a break out. JPM is also led by Jamie Dimon and has a lot of popular support. I am bullish on JPM in the near to short term and am trading calls this week. My target entry is below $54.50 with a one week expiration.

More Tips by the Geek  – 6/3-10/2013 Trading Tips On Forum.

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That’s it for this week; Michael will be here next week with fresh trading tips. Meanwhile, we will be testing Michael’s tips to see what kind of an “expert” he really is. All trading assets and expiry times featured in Michael’s trading tips are based on CommuniTraders Binary Options Trading Platform.

 Think you know better than our experts?? Have a Second Opinion??  Post your trading advice on our Trading Tips Forum or at the bottom of the page! Join CommuniTraders and Start Trading,  only on BOTS.com new growing community.  

*** Please read Binary Options Weekly Trading Tips guide to understand better how to use the trading tips. Start Smart with BinaryOptionsthatSuck.com.

Stock markets rally into the end of the week as Non Farm Payrolls surpass initial expectations.  ECB fails to implement negative interest rates.  BoJ meeting and Australian jobs to drive next week’s volatility.

Weekly Binary Options Briefing:  Stocks Stage Late Rebound after Positive Payrolls

Stocks moved higher into the final sessions of last week, as the US Non Farm Payrolls for the month of May came in above analyst expectations at 175,000 jobs added for the period.  This was above even the original estimates (which called for a rise of 165,000 jobs), but the surprise was even larger as early data indicated that the final result on Friday would weaken.  Wednesday’s ADP employment report showed that private companies added 135,000 new jobs for the month, and this led to downward revisions in the NFP survey.  So, when the headline figures came in higher than even the original estimates, market reactions were more pronounced.

Looking into the details, however, the overall picture is not as positive as it might seem.  Payrolls data for the previous month was revised lower (149,000 for the month of April), and the unemployment rate moved higher to 7.6%.  Traders focused solely on the headline NFP surprise and sent stocks higher but there is some potential for these gains to retrace once markets have more time to consider the details of the report.  At this stage, markets are mostly concerned with whether or not new jobs data will inspire the US Federal Reserve to start cutting back on its monetary stimulus programs.  This makes public commentaries from voting members take on an even higher level of importance and with the slower data calendar ahead for next week, potential market moving events could be seen from these areas.

The Week Ahead    

 In the week ahead, the biggest event risks will be seen with the Bank of Japan interest rate decision on Tuesday, and the Australian jobs numbers on Thursday.  No major changes are expected at the BoJ meeting but the Yen has risen roughly 7% since its last policy meeting, so traders will be looking for comments that are specifically currency related.  The BoJ has a marked interest in seeing a weaker currency, so it will be important to see how (or if) this issue is discussed in its next statements.

My Trade Ideas (Trade on CommuniTraders):

1. The  massive Yen rebound into the middle parts of last week was driven mostly by stop losses in an overly short market.  The fundamental picture has seen almost no change so I am looking at these downward moves as new buying opportunities.  The downside volatility failed to produce a daily close below Fib support at 95.70, so as long as this picture remains constant, anything below 98 should be viewed as an opportunity for weekly CALL options in the USD/JPY.  We will have the BoJ interest rate decision next week and with this pair’s tendency toward volatility, options positions are far preferable to spot positions for USD/JPY bulls.

For stock trades, I will look to play off of last week’s earnings surprise from PriceLine.com (PCLN).  Quarterly revenues rose to $1.30 billion (from $1.04 billion previously), which was higher than analyst estimates.  For next quarter, Priceline sees earnings coming in at $7.87 to $8.45 per share with adjusted earnings of $8.87 to $9.45 per share.  Technically, the stock has found support at the 38.2% Fib retracement of its latest rally.  Look to buy monthly CALL options in PCLN at 805, targeting a break to new all-time highs.

1. German Constitutional Court Ruling

Tuesday or Wednesday (June 11-12)

What will it affect: EUR, DAX

Forecast: no estimate is made for this event

Where to keep an eye on the event: CommuniTraders, Forex Factory, Bloomberg, Reuters, DailyFX

Why traders care and what to expect: The German Constitutional Court will announce a ruling regarding the constitutionality of the Outright Monetary Transactions policy of the ECB. The effect of this ruling can be mixed and unexpected because it is not a regular financial or economic indicator. Jurisdiction issues prevent the decision of the German Constitutional Court to influence the entire Euro Zone but this event may start a showdown between Germany and the ECB a fact which will be highly detrimental to the Euro.

Directional bias:  UP if the Court considers the OMT constitutional

                                   DOWN if the Court considers the OMT unconstitutional

How I would trade this event: This event may be interpreted very differently by each market participant and it might generate massive movement or it could be overlooked. I will make a decision regarding trading once the Court announces its ruling and I see the market’s reaction.

2. UK Manufacturing Production

06/11/2013 – Tuesday at 08:30 am GMT

What will it affect: GBP, FTSE

Forecast: 0.0% from the previous of 1.1%

Where to keep an eye on the event: CommuniTraders, Forex Factory, Bloomberg, Reuters, DailyFX

Why traders care and what to expect: The Manufacturing sector makes up for about 80% of all Industrial production of the UK economy and that makes the release of this indicator highly important for market participants. It’s a leading indicator of economic health and it’s correlated with consumer spending, employment and earnings. High production levels are indicative of increased economic activity, more jobs and consequently more money to spend by consumers.

Directional bias: UP if the actual value is above 0.0%

                                  DOWN if the actual value is below 0.0%

How I would trade this event: I would buy an hourly Call on GBP/USD and one on FTSE if the value will be higher than 0.2%.

3. United States Retail Sales

06/13/2013 – Thursday at 12:30 pm GMT

What will it affect: USD, US indices, some US Stocks

Forecast: 0.4% from the previous of 0.1%

Where to keep an eye on the event: CommuniTraders, Forex Factory, Daily FX, Bloomberg, Reuters

Why traders care and what to expect: This indicator measures the monthly change in sales at a retail level. Consumer spending is a vital part of the US economy, making up for about 2/3 of all activity. The retail sector represents one third of all consumer spending and that makes this indicator a high-impact one.

Directional bias: UP if the actual value is above 0.4%

                                 DOWN if the actual value is below 0.4%

How I would trade this event: I would but a Call on USD/JPY if the value will be better than anticipated.

4. Euro Zone Consumer Price Index

06/14/2013 – Friday at 09:00 am GMT

What will it affect: EUR, DAX

Forecast: 1.4%

Where to keep an eye on the event: CommuniTraders, DailyFX, Bloomberg, Reuters

Why traders care and what to expect: The Consumer Price Index is the main gauge for consumer inflation. Higher values are indicative of growing inflation and this can determine the ECB to raise interest rates in order to counter it. The ECB’s goal is to maintain the CPI between 0% and 2%. Any value outside that range can trigger a rate adjustment.

Directional bias: UP if the actual value is above 1.4%

                                  DOWN if the actual value is below 1.4%

How I would trade this event: I would buy a Call on EUR/USD if the value is 1.4% or higher.

5. US University of Michigan Consumer Confidence

06/14/2013 – Friday at 1:55 pm GMT

What will it affect: USD, US indices, some US Stocks

Forecast: unchanged, 84.5 

Where to keep an eye on the event: CommuniTraders, Bloomberg, Reuters, DailyFX

Why traders care and what to expect: This indicator is derived from the opinions of hundreds of customers and it is considered the main gauge for consumer sentiment. A decline is usually indicative of a future decrease in consumer spending and as we saw above, consumer spending represents about two thirds of the entire economic activity. So, the correlation between consumer confidence and consumer spending makes this indicator a high impact one.

Directional bias: UP if the value is higher than 84.5

                                  DOWN if the value is lower than 84.5

How I would trade this event: I would buy a Call on S&P 500 if the value will be higher than 85

Note 1: The times, dates and values can change during the week. Keep an eye on the mentioned financial websites for any modifications.

Note 2: Other important events of the week: Bank of Japan’s interest rate decision announced on the 11^th of June (early morning GMT) and the New Zealand interest rate decision announced on the 12^th of June at 9:00 pm GMT.

“Morris: Welcome to our live chat service.“

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3. How Big Is AnyOption Bonus Wager? Would I Be Able To Withdraw Without Fulfilling The Bonus Requirements?

“…Currently we have no bonuses. We will offer you one if we have some..”

4. What Documents Do I Need To Provide In Order To Withdraw? And How Much Time Will It Take To Receive My Profits?

“A copy of your ID, credit card (if used) and a withdrawal form we will email you once you request the withdrawal… As our client you have one free withdrawal every calendar month… Every withdrawal is being sent after 3 business days…”

5. Can I Open A Demo Account On AnyOption?

“We have no demo accounts sir”

My Overall Impression on AnyOption – GREAT Support. Thanks.

The Anyoption representative was polite, fast and accurate in his responses. His responses were not prewritten and that was especially important for me as I have seen a lot of brokers copy pasting you all the answers to your questions. The chat started with their confirmation that Anyoption is the biggest binary options broker out there, with more than 400 000 clients’ worldwide. He explained that they have LIVE trading page where you could see the other trader’s activity, which in my view is unique feature among all the binary brokers out there. The two things which were not as I expected were these – the support person told me that they don’t offer education and don’t have demo trading accounts. Nevertheless, when you have a reputable broker with reliable trading platform, very good support and fast withdrawals you could forget about the absence of educational materials and demo.

I have met a lot of traders who trade with just a naked chart and no indicators at all. Their argument is that all indicators are derived from price itself and lag behind it. Indeed, all indicators use price to calculate their values. But does that make them useless? Not by far. Indicators help us filter out the noise in the market and show us the big picture at a glance by smoothing the price movement. Well, at least some of them do, because there are a lot of “bad apples” among all the tools and indicators available out there. So let’s see what we can choose from.

Old School Indicators

Some of the most respected and widely used indicators still remain the old ones, invented by the real market Gurus:  John Bollinger invented Bollinger Bands in the 1980s, George Lane together with a group of futures traders, created the Stochastic in the 1950s. In the 1970s, when everybody was smoking weed and listened to The Doors, Gerald Appel was working on his masterpiece: the MACD. Of course, I couldn’t forget about the man who created the Relative strength Index, J. Welles Wilder. These are, in my opinion the bread and butter of a technical analyst. Everybody who wants to have a good understanding of the technical aspect of the market must learn about these indicators…in detail. There are other important and useful indicators, and just because they are not mentioned here doesn’t mean they are not good enough.

New School Indicators

These are the fancy indicators, developed more recently but most of them are just modifications of the old ones. However, there are new tools that can really help a trader although they don’t show price direction. Among these tools you will find trend lines or Fibonacci levels that are drawn automatically on charts, software that can recognize chart patterns or candle formations. There are so many indicators these days that choosing the right one can be quite a burden sometimes. First of all, you must know what are you going to use that indicator for: will you use it for trend recognition or for timing the entry better? Or maybe you will use it to tell you when to close your trade early. Once you know what you are looking for, you will probably find an indicator to help you with that. If you don’t manage to do it by yourself, I am sure you will find help on our Forum.

 -Check out All Trading Tools and Indicators

The Repainting Indicators

Well, these are the ones that everybody tries to avoid…because they lie. By repainting indicators I mean the ones that look good if you check back on the charts because they will “adjust” themselves even after several candles are closed. That makes it look like they give amazing signals but if you watch them in real time you will see how they adjust to fit the market… after the market already moved. That makes them almost completely useless because you will never be able to take the signals you see. To put is simple, if you scroll your charts back, they look like the Holy Grail and in real time they just Suck big time.

The “Puke” indicators

These are mostly used by the scammers who try to sell you “a secret never heard before, used by major hedge funds and banks”. I am sure you received a lot of e-mails advertising this type of indicator. They try to mess with your head, advertising “easy and quick” profits, no experience needed, no financial knowledge… so you don’t need a lot of intelligence or education because the indicator they sell you will make up for all that. The indicator they advertise is so good that you actually can operate it even if you have a 2 digit IQ… and of course, it will bring you huge profits. To “prove” it, they show you a picture with some repainting indicator that looks great in hindsight, just like I said in the previous paragraph. The big disappointment will come after you actually purchase the “secret” indicator and realize its only use is… well, actually this kind of indicator is as useful as “puke”. Just don’t buy anything from websites that sell you overnight riches for just $99.99. No indicator sold in this manner will help you with your trading in the long run.

Wrapping it up

I think you need to find the right mixture or “recipe” when using tools and indicators. Some of them help you identify the main trend while others help you pinpoint the exact entry. Finding the right combination requires a lot of hard work and attention to detail. All indicators will give both good and bad signals and can fail if they are used on their own. So, I don’t think that you can rely on a single indicator to make big bucks in this business. Combine their strengths and whatever you do, don’t waste your money because almost all the best indicators and tools are free.

Go to Binary Options Tools and Indicators Forum Page

Just one month after switching to Communitraders I have begun to make my way up the leader board. It has been a little tricky using Communitraders because the expirations are a little different than what I had been using on Anyoption. Even with the additional headwinds this month was another good month for me with a net gain to show for my trading. I made a total of 19 tips this month, weird I know but when reviewing the articles I only offered four trades the week of May 13^th, an error on my part. Out of those trades three have yet to expire and will be reviewed in next months recap.

 How Did I Do?

In total I made a total of 19 trades this month with 12 winners. This is a 63.15% winning ratio and an improvement over the past two months. Total cost of trading was $1900, total return on winning trades was $2220 for a net gain of $320 or 16.8%. This is not my best month but it is up there. One thing to note is that my average return is up using Communitraders even though there is no rebate on losing trades.

Total Cost Of Trading = -$1900

Total Return On Winners = $2220

Net Profit/Loss = $320(16.8% return of investment)

 S&P500

My best asset was the S&P 500. I made a total of 4 trades on the index and won 3 of them. Even though I am bullish on the index I did not only trade calls last month. I made one put play going into the end of the month and it payed off. Cost of trading the S&P 500 was $400 and returned $555, a gain of 38.75%.

North American Stocks

After the S&P my best trades this month were on Bank of America and JP Morgan. I was bullish on the banking sector and used these two assets to trade it. I made three trades on the two banks and profited on all three of them. Total cost of trading $300, total return $555.

Japan

Next up is the USD/JPY trade. I also traded this asset four times this month, currently two were profitable and one is yet to close. The long term trend in this pair is still up so I think the last trade will close in the money as well. Cost of trading the USD/JPY was $400, so far it has returned $370.

EUR/USD

I was not so fortunate with the EUR/USD. This trade has been a roller coaster ride over the last few weeks with me a step behind much of the time. I made four trades on this pair and only profited on two of them. Total cost of trading $400, return $370.

European Markets

I ventured back into the European markets this month as well. Well, I made one trade in that sector anyway. My call on the DAX was met with success and yielded a win. Long term trends look positive for this market but the view is still murky at best. I may make a few more trades on the DAX in June but I will wait for after this round of data is out. Total cost of trading was $100, total return was $185.

Gold

Gold was my bane this month. My analysis is good, direction and trend is good but market fluctuation kept my out of the winners circle. I made four trades on gold and only managed to profit on one of them. Total cost of trading was $400, total return was $185.

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