Diversifying with Derivatives as Stock Markets Remain Volatile
Diversifying one’s investment portfolio by trading with derivatives has become the most repeated financial advice in light of the volatile stock market conditions. There are numerous trading platforms that offer a wide range of investment assets, many of them licensed and offering practice trading platforms to those wading into derivative investment for the first times.
Checking out reviews is only the initial step in finding out which trading platform to select. Yet the best way to truly find out if diversifying with derivatives is sound advice, is to try out several demo or practice trading platforms and compare outcomes using the features, functionalities and tools of brokers.
If there is one broker who has received mostly favorable reviews for its trading platform,we can say for sure that it is IQ Option. The positive feedback gathered on every IQ option review we’ve read, mentioned that the unique, yet easy-to-use technical analysis tools make this broker’s trading platform different from the rest.
That only proves that not all online trading platforms are the same. The availability of functional tools that a financial trader can use in analyzing the different investment assets and in formulating strategies in their trade is a rare find.
IQ Options Technical Analysis Tools
While trading platforms create charts and diagrams, the key to a successful trading is still the ability of the trader to analyze and interpret data. IQ Option helps clients in performing the processes efficiently, by incorporating the following technical analysis tools:
First off, there is a drawing board that comes complete with markers, serving as handy tools for creating and placing markers on graphical analysis and in locating chart patterns. Together with the related indicators appearing in the trading platform, the drawing tools are great to use in working out strategies and analyzing patterns.
Another excellent feature are the indicators that can assist traders in making accurate predictions about price movements. IQ Option actually offer four indicators:
Bollinger Bands – Seasoned financial traders are familiar with this type of indicator, which works by creating borders within which prices move; whilst using data gathered from standard deviations and moving averages. Within those borders, traders can look for signals that indicate Call or Put options; depending where the price breaks, either at the lower or top limit.
Moving Averages – Through this platform, newbies to derivatives can have a clear perception of how moving averages work and of its indication in relation to the diagram. Based on the average price of an asset for a pre-set time interval, a diagram crossing the moving average signifies a call option. Financial trading experts say that the longer the time interval set for the moving average, the greater the potential of signal accuracy. . .
Relative Strength Index (RSI) This indicator is applicable only in analyzing candlestick charts. Still, it’s one of the most popular worldwide because this indicator reflects both the robustness and the size of price changes. However, the RSI appears in a separate window just beneath the chart, instead of appearing on the analysis chart.
Alligator This indicator comprises three (3) moving averages of three different time frames. Traders take note when all three indicators start moving in a single direction because it means a trend has started, which they need to follow.
Having all those functional analysis tools in a trading platform that tracks assets, commodities and indexes, will enable any newbie to gain confidence when giving derivatives trading a try.