A study conducted in April 2013 showed that the volume of the global Forex market increased from the previous 3.97 trillion dollars per day (April 2010) to 5.34 trillion per day. Wow, do you know how many zeros are in a trillion? I had to check it separately. Twelve, and the trillion looks like this: 1,000,000,000,000. I understand that this study does not apply specifically to binary options, but it clearly indicates the growth of global interest in financial markets and binary options as part of it.
Okay, so what do these numbers mean for us?
First, it means that if we’re running a business that has a significant turnover, with a lot of turnover per day, if we can bet big, we might have great opportunities. Secondly, it means that we are in a serious competitive environment, because, like you, everyone else also wants the same opportunities, so you need to be the best. To get to the level where trading brings enough profit to live on this profit, you need to learn how to perform technical analysis in combination with fundamental analysis.
As for technical analysis, a huge number of articles have been written about it.
And what about the fundamental part?
It consists of political and financial events taking place in the world that affect the market and, of course, our trading.
The impact of fundamental events – what is it?
Fundamental events can change the direction of movement of the price of a pair, stock and even a commodity, since the country’s economy, which affects the currency, has a huge impact on stocks and indices. Needless to say, you should be well informed about what is happening in the world, and especially in the countries whose currencies you trade.
Let’s assume that Mario Draghi (President of the European Central Bank) comments on the poor state of the European economy, saying that many member states will soon need financial assistance. This would immediately have a negative impact on the European economy and the EUR/USD currency pair, lowering its rate. Of course, this will bring you profit if you bet on EUR/USD Put, but if you choose Call, then you cannot avoid a loss, so now you understand why you need to be aware of such events. However, the speeches of the head of the central bank are not all that matters; There are other important fundamental events, such as retail sales, consumer price indices, productivity indices, nonfarm turnover, unemployment rates and, of course, interest rates.
And while there’s no way we can know the outcome in advance, we can always prepare to develop a response plan when the news comes out. To do this, we must know the exact time of the announcement, and it is possible to find out by following the financial and economic calendar. Many websites offer such calendars, so it’s very easy to find them. But not all calendars explain the impact of each event, so you may get lost in abbreviations such as CPI, PPI, PMI, NFP, and more; even if the events are not shortened, it is still quite difficult to guess what each of them means, and which one will make the price move up or down, and this is where BOTS can come in handy.
How do I track events?
At the beginning of each week, we post on the homepage information about the most significant events and tips on how to trade depending on them. Moreover, our experts are always at your disposal on the forum, we will notify you about the latest events and trends; Real-time news is also available on the CommuniTraders platform, so you’ll have all the tools you need to make an informed decision. Whatever you do, don’t trade before an important event has happened, as it will be more like gambling, as no one can predict the outcome in advance.
An informed trader is a good trader
Knowing when a potential event will occur that will have a move in the market is an opportunity to develop a plan for trading. However, knowledge is acquired over time, and in order to be able to predict movements in the market, you need to have a huge amount of knowledge. So we don’t want to trade on our own, and we try to clarify all the major events before they happen (or immediately after they happened, especially if that event was unforeseen).
Thus, you can profit from the accumulated knowledge, as you familiarize yourself with the events on binary options.
Tagged with: Binary Options Academy
