Binary options trading is based on news, regardless of how we do the analysis, fundamental or technical analysis. The unpredictable world of investment is full of chaos and requires sources of a decent amount of news that will help you make sense of the murky waters of a market that is changing incredibly fast. If we take into account the fact that binary options trading is a relatively new form of investment, then these waters can also be very volatile.
With a lot of news, there are economic noises that get in the way of making the right decision.
However, eternal financial and economic laws still apply here. For example, a coup in the Middle East is likely to affect crude oil prices, the U.S. dollar, and the fortunes of companies that operate in a region where there is unrest. When currency pairs such as EUR/USD fluctuate, investors most often seek to invest in gold, which is considered a safe and secure asset. If there was a wave of floods or other natural disasters in South America, then investors expect a jump in coffee prices, as demand remains constant, but supply will probably fall in this case.
Given the huge number of variables and different scenarios, it is important to keep a close eye on the news. News can radically change the forecast.
Combine the intensity of trading with reasonable numbers.
Unlike Forex, binary options trading follows a simple logic: the investor chooses between two possible outcomes: the price of the asset will increase or decrease over a certain period of time. If you bet that the price of gold will rise over the next 15 minutes, and it will rise, then you will win, if not, you will lose. In such a scenario, it is important to keep a close eye on the news.
It is important to follow reliable financial instruments, with the help of which global markets are constantly monitored. In other words, it would be wise to invest in an additional monitor to see a constant, uninterrupted stream of news. It is also necessary to follow the analysis and opinions, where you can read practical comments on the current political, financial, economic situation of a particular region or country.
» Binary options trading strategy on the news
If trading is difficult, then those who are afraid of difficulties are the hardest. That is, it is best to avoid panic by any means and keep your sanity. Follow the news, don’t try to predict the future. Just make sure you study all the trend direction lines and news in real-time.
Reliable sources – and where is the art?
The main thing you should remember is that there are never too many new sources. Needless to say, most news should be filtered, but if you watch the market, it will give you accurate information about how investments work in real time and how investors react to different events in a certain period of time.
A coup in the Middle East, a presidential election in Venezuela, a natural disaster in Japan, an economic default in Greece – and everything steel – will have an impact on the global financial market.
The usual suspects, such as Bloomberg, The Economist and the Wall Street Journal , are all reliable, old, and constantly updated news sites that publish fresh, thorough market analysis. You can also rely on sites developed in this niche, where individual assets are monitored and discussed. If currencies are something you would do, try investing.com or FxEmpire, where you can find updates and market reviews on the major forex pairs. And if you were engaged in trading on oil, then check out what the Oil & Gas Journal offers.
Most binary options traders prefer to trade on short intervals, which means that long-term financial trends are less important than when it comes to long-term investments. Thus, it is important to monitor the news, monitor it in such a way that your life depends on it, since they constitute the main aspect of trading – otherwise you will rely solely on luck, and luck is changeable.
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