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Shay Ronen's  Instablog

Shay Ronen
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30 year old, working, studing and enjoying life. cheers
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  • Simplify Commodity Trading With Binary Options

    Offset the perils of inflation by trading binary options that have commodities as underlying assets, and capitalize on their intrinsic value.

    Enter a speculative market with binary options commodity trading.

    What makes the binary options so exciting is that they can be used for a broad range of assets, including commodities, indices, currencies and stocks. They make it easy to trade large provisions throughout the world and those who know how to take advantage of the speculative market will reap generous rewards. Making overnight profits is not possible, but with the proper trading strategy it is possible to gradually expand your budget and perform more ambitious trades.

    Protect yourself from market volatility

    Commodity trading is one of the most popular, because some of these supplies act as excellent hedges against inflation. To name the one which better fits the profile, we should look no further than oil, with the one trade via digital options being a special type of petroleum known as sweet crude oil. With less than 0.5% sulfur, it is highly sought after because it is of superior quality and can easily be turned into kerosene, diesel of gasoline. It has become the standard for trading petroleum, so the binary options are reflecting the prices of this kind of oil.

    Contrary to popular belief and the old saying, money is not the one making the world go round, but oil. That's why this is together with gold, one of the most traded commodities, and both seem to be immune to inflation. If oil is responsible for the overall progress of society hence, untouchable by inflation, the precious metal's intrinsic value protects it as well. For centuries it was used in conjunction with silver as currency, but forty years ago paper currency prevailed.

    Broaden your horizon by trading binary options

    It seems like its success will be short lived, because at the rate inflation bites chunks of it, it will not be worth much in the close future. Commodity trading includes gold as one of the most important assets, and while regular people are inclined to buy physical metal to protect the saving, a similar attitude has the investors. There is not better way to protect your cash against central banks who are printing money at unprecedented rates, than by investing in assets that have intrinsic value.

    Among the precious metals that are used in binary options trading, platinum plays an important role although its value oscillates. It is a very versatile metal which can be used both as jewelry and for more practical purposes, in high tech equipment. Speaking of precious metals that are regarded both as assets for commodity trading and useful materials in everyday objects, we shouldn't neglect silver. It also has intrinsic value and this pretty much explains why the prices spiked in the last years, at the same rate as inflation rose. To learn about binary options commodity trading check this site.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Additional disclosure: Commodities trading with binary options can maximize profits.

    Oct 17 9:52 AM | Link | Comment!
  • No Reasons To Expect A Surge In Natural Gas Prices

    A few reasons for why the natural gas price drop is no accident

    We are so used to seeing the prices go up all the time, that when a resource as important as natural gas is getting cheaper year after year, we start asking some common sense questions. The first instinct is to predict the reversal of the trend and to dismiss the natural gas price drop as an accident or a temporary thing. In reality, we should expect a bearish market for the upcoming years, because there are very few reasons for the prices to follow an upward trend.

    Shale rock drilling changed the rules of the game

    Strong production of natural gas from shale formations caused the prices to fall as much as 85% since the 2005 spike and this kind of drilling is here to stay. The process is already so effective that extracting the gas is cheaper than ever and the offer vastly surpasses the demand. Due to the fact that our pricing system is closely linked on short-term demand and supply, the natural gas prices are decreasing steadily. The storage facilities are unable to cope with the high production and there is a real risk for the system to be overwhelmed.

    Regardless of how prices oscillated during the last decade, consumption remained at virtually the same level and now that production has increased, there are not enough interested buyers. On the other hand supply continues to stay high because producers can't afford to cease the extraction of natural gas. They have loans to repay and they have to choose between using the gas or losing it, a particularly tough decision given how low the prices are these days.

    Export can lead to a significant increase in natural gas prices

    The US market is saturated right now and it appears like for a couple of decades there would be no need for imports at all. If the prices continued to drop at the same steady rate, many producers will have to rethink their strategies and refit their equipment so that they can extract oil instead of gas. Long-term investments no longer make sense, because there is no clear indication that the demand will suddenly increase. Exports remain the only solution right now and given the fact that the natural gas prices are lower in the US than elsewhere, this looks like a smart move.

    Natural gas costs three times more in Europe and six times more in Japan which explains why many see this resource as the one to fuel growth in the next decades. While in the long run it is plausible to expect the prices to rise steadily, very few investors can afford to keep their money blocked for the sake of long term gains of moderate proportions.

    Trading Natural Gas

    When ones wants to trade the UNG etf, you might want to check your a new option, by trading the gas price the binary way, to learn more about it check this link about trading binary strateiges and trading the price of Natural gas.

    Disclosure: I am long UNG.

    Additional disclosure: I think the price has to go up in the long term.

    Tags: UNG, Commodities, gas, oil
    Sep 10 4:26 AM | Link | Comment!
  • Gold Forcast For The Upcoming Weeks

    Online trading in gold is considered as a form of currency. This is done electronically same as other currencies. The only difference is that gold trading is only done against United States dollars (USD), i.e. their prices are expressed in US dollars.

    The gold trading method is called (over the counter) or simply OTC. This is not part of Stock Exchange of any country and therefore its deals are not controlled the same way as Stock Exchange. It's done directly between the seller and the buyer. This means that no person(s) or organization is involved.

    My Forecast, As spot gold trades now at 1588.92 I see it's going up as it forms a descending Flag Template, as we all know it's a very strong setup that might take the gold back to the highs we saw 2 month ago.

    One should note that the margin requirement may change without notice because of market and changes within individual instrument. It should be noted that leverage and margin are approximations and not exact figures, since margin requirement are standardized. Therefore margin requirement will not change from transaction to transaction, as leverage/margin may become less or more favorable.

    One can perform day-trading. This means that deals are completed before the closing of trading day. Gold traders usually hold their position for a short time, but the deal should not necessarily be completed within a day. Once trading day is opened, it can only close due to one of the following reasons:

    • The date decided for ending is reached
    • The deal reaches its loss limit
    • The trader ends the deal

    Gold trading online has become so popular business with real time commodity quotes and lives charting services, this has made gold trading services previously reserved for the rich only, available for all. It also has advantage that, as the price of gold increases, the value of the US dollar falls; therefore investors use this as a way of balancing their profit or loss. Investors may also buy gold to balance the effect of inflation and currency value changes, since it keeps its purchasing power over time.

    To learn more about trading Gold though Binary Options I always look for the best broker here. They also feature an amazing market briefing by Richard Cox.

    Disclosure: I am long GLD.

    Sep 04 1:15 PM | Link | Comment!
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