Colour Trading – Meaning, How it Works, Rules, and Legal Status

Trading is an activity or process in which a trader enthusiastically buys or sells financial instruments like stocks or currencies. A trader analyses market conditions, conducts in-depth research, and examines market fluctuations. Based on data, facts, and figures, they decide to either buy or sell a financial instrument. 

There are several types of trading activity. One such activity, which is gaining popularity day by day, is colour trading. In colour trading, traders usually predict the upcoming colour in the chart. Based on the correctness of their predictions, they earn a profit. Let’s examine in detail what colour trading is.

What is Colour Trading?

Colour trading refers to the use of different colour charts or indicators to analyse, evaluate, and predict the stock market trends. In this trading strategy, traders usually predict a specific colour representing the market. Typically, a trader has the option to choose from three colours: green, red, or yellow. A green colour indicates a blooming market with rising prices. A red colour indicates a bearish market with a significant fall in prices. A yellow colour indicates a cautious and neutral market where prices can either go upward or downward. 

Colour trading involves predicting the outcome of a colour-based chart depending on the trader’s knowledge, insights, and research. Traders have a limited time frame that lasts up to 30 to 60 seconds. Within the given time period, traders have to predict which colour will appear on the chart. A good prediction leads to huge profits, while a wrong prediction can lead to huge losses. 

How Does Colour Trading Work? 

Colour trading is a method of predicting the outcome of a colour-coded indicator. Traders choose a colour that represents an upward, downward, or constant market movement. Given the limited time frame, traders need to act quickly and smartly. 

It is a visual and simple approach that helps traders to easily identify and predict the market. Here is an overview of how colour trading exactly works: 

1. Colour trading websites engage in the analogue of colour to depict market conditions.

• Green represents a good market
• Red represents a declining market
• Yellow or Orange represents a watchful or neutral market

2. Traders draw conclusions about such colour patterns and make decisions to buy/sell/hold an asset based on candlestick charts, heat maps, or tech indicators.

3. It is a process of rapid decision making, engaging in foresight, and analysing the change in momentum without engaging much in numerical analysis.

Benefits of Colour Trading

Colour trading is a distinctive approach that simplifies trading by eliminating the need to go through deep technical analyses and assess economic indicators. Besides, colour trading involves a relatively low investment outlay, and one can start trading with $1. Here are the key benefits of colour trading: 

• 1. Colour trading interfaces are highly interactive as well as very simple to use.
• 2. It is very much accessible.
• 3. It simplifies trading for beginners by avoiding the use of large amounts of data.
• 4. It is a simple style of trading that allows fast decision-making. 

Rules and Regulations for Colour Trading 

There are several rules and regulations that govern colour trading. Traders or participants strictly need to abide by the following rules and regulations: 

Top 3 Colour Trading Apps

Colour trading apps allow participants to seamlessly interact with the platform, analyse the trends, and make predictions. Here are the top colour trading apps that you can interact with:  

1. TP Play

It is one of the most famous colour trading apps known for its user-friendly interface, simplicity, hassle-free transactions, and secure payment methods. The app offers multiple colour trading sessions in a day. It also offers referral programs to enhance your earnings with low withdrawal limits. 

2. 55 Club 

It is a fun colour trading app offering quick withdrawals, large payment rates, multiple time slots, and reliable customer support. The app has a strong referral system that offers huge earnings. With instant withdrawal and daily tournaments and challenges, the app keeps users engaged and occupied. 

3. BDG Win 

It is one of the fastest-growing colour trading apps. It gives participants the safest way to make predictions and earn money. Its interactive user interface makes it accessible to participants at all levels. It offers you a sign-up bonus, quick payouts, and various cash rewards. 

Is Colour Trading Legal? 

Colour trading involves predictions rather than facts. So, it is largely categorized as a form of gambling, thus illegal. It is not recognised by a regulated body and has no legal source. There is no real asset involved in colour trading. It does not involve market analyses, conducting research, or examining numerical data. It includes mere participants’ predictions or chances. It relies more on luck than facts or figures. 

Risk of Colour Trading 

Colour trading involves several risks that a participant must be aware of. Here is what every participant should know before starting colour trading: 

• 1. Many colour trading platforms are just a scam. They do not allow the participants to withdraw their money, and sometimes block their accounts. 
• 2. As it is not regulated by the law, the participant cannot seek relief through the courts. 
• 3. Regulatory authorities often ban or block illegal colour trading applications. Participants registered with the platform also face consequences, as the authorities seize their accounts and assets during investigations. 
• 4. Several platforms promise or offer high returns, mislead the participants, and conduct financial fraud.

Looking Ahead: Colour Trading – A Trend or a Trap?

Colour trading significantly reduces the chaos of handling analytics, numbers, and figures in trading. It simplifies the process by regulating colours to reflect the market. However, it is more dependent on predictions and luck than on obvious facts. It is the simplest way to start trading or earn a profit, but it is not legally enforced by law. Many times, colour trading platforms are scammers or frauds who cause financial hardship to participants. While indulging in colour trading, participants must understand the rules, regulations, and legal risks involved. They need to analyse the platform, its policies, and authentication carefully. 

Frequently Asked Questions