How to trade on the news?
Many methods of conducting fundamental market analysis today are often used by private investors in binary options trading. In this regard, professional investors are interested in the profitability of forecasts and highly accurate signals for trading, as well as the possibility of using trading assets.
Options beginners are not always able to understand how to properly work as a trader in the binary market, using financial and statistical news publications as profitable trading signals. Therefore, today we give a detailed description of the popular simple strategy “News Trading” designed for binary options, and introduce you to some of the intricacies of its application in trading.
So, how does fundamental stock analysis work and how can it be used in binary trading? It’s very simple, professional stock players and investment companies have long been using simple financial and technical patterns in order to predict the movement of quotes.
These patterns are based on the influence of a variety of statistical indicators of the world economy: statements of a political nature, news reports on the activities of large corporations – all this directly affects the asset market. Or to put it simply: the news background of the financial exchange sector is the most accurate signal and, accordingly, a forecast for the growth or fall in the value of financial instruments.
News Trading Strategy
This binary options strategy requires preparation and is best prepared the day before trading. Some traders trade only on the economic calendar and have consistent decent profits. The popularity of the strategy is due to the fact that it does not require practical knowledge, and its testing can be carried out taking into account past events.
Let’s start the study of the system with its technical requirements. And the first thing that is required to work with binary options on news signals is the information service from which the trader will take the necessary information. The optimal and comfortable option for up-to-date news information is the “Economic Calendar”.
Any investor can use the data in the interactive table to search for signals that are published throughout the day. It is known both the exact time of the release of each news, and the asset on which this publication will have an impact. In addition, you can see information on past statistical indicators, and the forecast of exchange specialists, as well as the actual values of each news. This is a complete set of information necessary for profitable news trading.
How to work with the economic calendar?
1. Check the news on the economic calendar the next day.
2. We mark the most significant events, those that can affect the movement of prices (trend).
3. We are waiting for the news to come out.
In the calendar:
- News marked in red means a fall in the price of an asset
- News marked in green means an increase in the price of an asset
- A story marked in black means that the news will not affect the asset
4. We are waiting for the news to be released, open a deal in accordance with the actual value.
The results of this strategy are very impressive. The main thing is that there is no delay at the binary options broker:
Important news greatly affects the price of an asset, this can be predicted with a high probability. It is best to check the news history and market movement after these events. As you can see in the example above, the market made a jump of 80 points.
In binary options trading, using a news strategy, you can get high results, you can open trades for only 60 seconds. The advantage of this binary strategy is that the risks are limited, but the earnings are not.
The broker’s platform is a news trading tool
The second tool for effectively working with news as a signal for trading is the trading terminal itself. In this matter, it is necessary to choose professional reliable platforms that make it possible to work with a large selection of assets, offer highly profitable exchange contracts, accurate liquidity and a quick mode for opening options. For news trading, we recommend the Binomo broker terminal.
Trading on the news with the broker Binomo
The Binomo terminal offers the most advanced high-tech conditions for trading, among which are:
- A set of 80 units of assets in different areas of the financial market;
- Lots 90% profitability;
- The speed of registration of positions is 1.7 ms;
- Trading quotes from reliable agencies;
- Expiration time – 1 min. -24 hours;
- The minimum trading parameters are the amount of the option from 1USD, the volume of the starting deposit from 10USD;
- Large selection of indicators, graphical tools;
- User-friendly terminal interface:
Other advantages of the broker include: positive reviews, a simple and convenient personal account, professional support, training materials, etc. You can get acquainted with traders’ reviews about Binomo, as well as engage in an active discussion of the broker’s advantages, here.
A detailed review of the Binomo broker is here.
Go to the official website of the Binomo broker here.
In order to buy a
CALL
option in the Binomo trading terminal, follow these steps by going to the binomo.com website and preparing the option, indicating:
- Type of asset
- Expiration
- The size of the bet
- Forecast of quote movement: UP
- Click the “buy” button and follow the results.
In order to buy
a PCI
option in the Finmax trading terminal, follow these steps by going to the binomo.com website and preparing the option, indicating:
- Type of asset
- Expiration
- The size of the bet
- Forecast of quote movement: DOWN
- Click the “buy” button and follow the results.
Bonuses broker Binomo
Binomo holds promotions for its customers, which can be found here. By trading with bonuses, you get a decent income, save your personal funds and can quickly get the most out of options.
Binomo Weekly Tournament
Weekly tournaments of the official Binomo website are an opportunity to get real money for free. Prize funds can be withdrawn in a convenient way for you and spent on any needs, and you can also trade them with a broker. Tournaments are held on Thursdays, traders with any experience who have a demo account with a broker can participate in them.
Participate in the Binomo tournament
An example of trading on the news
Now let’s learn the classic techniques of trading on the news. Usually, for non-professional beginners, the most rudimentary news trading format is recommended, which gives a good income. This strategy is based on the regularity of the influence of statistical indicators on the movement of quotes.
In this case, a simple principle is used as a signal of a profitable transaction execution – bad data “pushes” the asset market down, and good, on the contrary, up! Clearly knowing the time of the news release, you can make decent money.
For example, let’s take the classic trading asset of news trading – raw oil. In this case, the maximum impact on the movement of quotations is given by publications on oil reserves in the United States. The latest data show an increase in statistical data, which leads to a decrease in the value of the traded asset:
As you already know, bad news provokes a decrease in the price of an asset, so at the output of such statistics, it will be necessary to issue a binary contract DOWN.
There is a trick in working with news in the binary market – a practical recommendation that allows you to issue a lot on the most favorable terms. Immediately after the publication of statistical data, the market may be in a state of temporary uncertainty, which is characterized by versatile chaotic price movements.
Therefore, if you make a position with a short expiration period at this moment, you can only “earn” losses. We recommend placing positions on the second wave that appears on the quotes chart, which was formed after the publication of statistics. It is better to use contracts with an expiration of half an hour to 2 hours:
Using our practical recommendations, you will be able to trade with minimal risks and increase the capital of the deposit.
Tagged with: Binary Options Strategies on the News • Binary Options Strategy
