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How to trade Twitter shares? 3 types of twitter stock strategy!
Everyone knows such a social network as Twitter, it has been around for a long period of time. This company is constantly developing and creating new developments for convenient communication between people.
However, in this material, we will talk about this company as a financial instrument and a way to earn income on binary options.
The use of Twitter shares as an exchange instrument for binary trading can be used by individual traders as a financial asset.
This is due to the excellent predictability of the shares of this company and the simple principle of operation of such a trading instrument as binary options.
In this article, we'll look at some simple examples of Twitter stock trading systems and give you tips to help you achieve great trading results.
Choosing a Broker to Trade Twitter Stocks
Stock market trading assets are not a very popular tool for option trading, but only a few companies display corporate securities quotes on their trading terminals. For example here this broker offers its clients the following services:
- Over 20 stock market financial assets, including Twitter shares;
- Loyal conditions for trading - a deposit of $100 and a bet of $5;
- Advanced trading software with a set of technical indicators;
- Analytical customer support at a high level;
- An integrated graphical service designed to build patterns, channels, trend levels and other graphical figures that are used in technical analysis;
- High return on options on corporate stocks, reaching 75 percent.
In this way, market participants can use the full range of financial risk management and market analysis tools when trading on Twitter shares, resulting in a stable income from binary trading.
When using Twitter shares as the underlying asset for binary options, you can use a huge list of trading tactics. However, it is necessary to highlight the main areas of trading on financial assets of the securities market, which are standard types of trading methods:
Of course, market participants should not be limited to these types of trading systems.
However, I would like to note that the listed trading tactics are the most effective and stable in terms of work in various market situations.
It does not matter what types of financial instruments you use for option trading, since the quotes of the underlying assets are subject to the same laws and patterns.
For this reason, the technical analysis of the stock market is a very accurate tool for making market predictions for binary options.
One of the most popular and effective approaches to trading on technical analysis is trading in channels, where trading is carried out in both directions of the price fluctuation of the option market, which in turn contributes to the rapid achievement of profitable trading results.
Let's look at a classic example using a special graphic service on broker's trading terminal. To do this, let's designate the quotation channel of the market movement on the trading chart of the underlying asset:
In this case, a simple trading principle works:
When the border of the price channel is touched by the quotes of the traded asset, the deal should be executed with a direction inside the price channel. And in the event of a breakdown of the price channel border, trading takes place in the direction of this breakdown.
According to statistics, with this approach, it is possible to increase the size of the deposit account by 200 percent within one day with minimal financial risks.
This approach is a classic way to generate income in the stock market.
It was from there that he appeared in binary trading, however, with some changes, and was able to show his effectiveness in practice.
From the name of this approach, it is clear that news trading uses data that is related to the activities of corporations, in this case we are talking about Twitter, and the publication of data on financial statements and company statistics.
Let's take an example of how the publication of a company's profitability report looks like:
As we can see in the screenshot, the situation is not very good - the corporation's income is falling, and net profit is in the negative zone.
In such a situation, the market forecast for the stock quotes of the corporation is an active price decline.
We can confirm this by looking at the trading chart of a financial asset - after the publication of the company's financial statements, the price dropped significantly:
Just this, together with an accurate forecast, should be used in option trading.
We need to open the trading platform of the exchange company and select the Twitter stock as the underlying asset there:
As soon as information about the profitability of the corporation is published, we should conclude a DOWN trade in accordance with the forecast we have formed:
With this approach, any information that is associated with the corporation can be used.
This can be both reporting and major financial agreements of the company, information about mergers, launching new services on the exchange market.
- With any option, a simple trading principle works: if the news is positive, then we conclude deals on the price growth of shares; if the news is negative, then the deals are executed for the price decrease of the shares.
This type of trading techniques is considered the simplest, as it is understandable even to novice market participants.
But, despite this, trading indicator strategies are highly effective and efficient.
Using a huge list of technical indicators and their settings, you can create strategies for trading on a specific financial instrument and in a specific market situation.
This makes automated analytics a very effective technical tool for creating trading forecasts.
Now let's select the MACD technical indicator from the list of the company's trading terminal, which is a very accurate tool for determining oscillator-type quote reversals, and install it on the price chart of a financial asset - Twitter shares:
Transactions should be concluded according to the trading signals of the technical indicator, created by the oscillator lines.
When the black line crosses with a short period of the red MA line, it is necessary to execute a DOWN trade. In the reverse interpretation - a deal UP.
This strategy works with options at the minimum terms of execution of trading positions - from 1 to 5 minutes.
At the end of the article, we can say that the simplest and at the same time effective trading tactics for option trading on Twitter shares are considered here.