Sweet Profits - Trading with Sugar - BDSwiss
Everyone has the white commodity at home. Everyone uses it, for baking or as an ingredient for the industry. The range is limitless. In my today’s article I will show you everything you need to know for a sweet return with binary options.
Sugar is underestimated!
Whenever I talk to newcomers at the stock market and ask them what tradable commodities they know, I always get the same answer: oil and gold. Some tell me something about copper or soybeans, but no one sees the obvious. Sugar! It is a quiet commodity. You do not hear much about it. The news rather report about the price of oil or raw materials which are used for smartphones.
Attractive for traders
The very fact that not much about sugar is reported, makes it so interesting for binary options traders. Why, you ask yourself. The answer is quite simple: because not so many people talk about this market, not so many traders are the go here. The result is that the market is very stable in relation to, for example, the price of oil.
Stable markets are good for binary options
The price fluctuations are not as pronounced as with other commodities. But we do not care, because we earn even with small fluctuations! This makes the sugar trade binary options so interesting. With old-fashioned financial instruments, investors have been able to earn only a percentage of the gain. We instead, get the full return!
Advantages of trends and chart analysis
Since sugar is not being traded as often as oil, trends can be identified quickly. Look at the chart and you will notice that it is much smoother than and not as jagged as many other commodities. If the price breaks out of your defined range, you have identified almost certainly a trend. Then all you have to do is to invest in the short term and reap profits!
Trade sugar long term
In addition to short-term gains, long-term returns can be achieved with sugar as well. To get an idea of the long-term performance, one must simply look at the figures of the German sugar associations. Overall, there has been an overproduction for years of the white crystals. Last year, there was an overproduction of sugar of around 5 million tons. I personally assume that this trend will continue. That is why I am positioned long term with falling prices for sugar.
The sweet profit
Finally, I would like to reveal my sugary strategy to you. I personally put on a combination of Bollinger bands and the moving average in the short term. This way I create a range in which I observe the price. If the price breaks out of this range, I invest in the direction of the trend. This works great for me. I can place a few short term trades on the sugar every day, while in the background a few long-term trades are running. This is how I create some decent gains in the morning already, before continuing in the afternoon.