Binary Options Trading: Follow the News!
The unpredictable and anarchical world of investment requires solid news sources that help you navigate the murky and the stormy waters of fast moving markets. Considering that Binary Options trading is still a relatively new form of investment, these waters can be extremely volatile.
However, the timeless laws of finance and economics still apply. For instance, upheaval in the Middle East will likely impact the price of crude oil, the U.S. dollar and companies that operate in the regions where turmoil is taking place. When currency pairs such as EUR/USD are fluctuating investors often flock to gold, which is considered a safe haven asset. If South America is in the throes of floods or other natural disasters, investors can expect to see a spike in coffee prices because the supply decreases while demand is remaining steady.
Considering the vast number of variables and different scenarios, it’s important to keep an eye on the news.
Combine Intensity of Trading with the Sanity of Numbers
Unlike Forex, Binary Options trading follows a simple logic: The investor chooses between two dual outcomes: the underlying asset either increases or decreases within a specific time period. If you bet on gold going up in the next 15 minutes, then you win, if it doesn’t then you lose. In such a scenario, it is important to keep a keen eye on the news.
Following trusted financial tickers that monitor global markets is crucial. In other words, it would be wise to invest in an additional computer screen to have a constant and uninterrupted flow of news. You should also follow analysis and opinion pieces which offer insightful commentaries on the current political, financial or economic situation of a current country or region.
When the trading gets tough, the tough get tougher. This means that you should avoid panic at all costs and keep a cool head. In other words, follow the news, don’t be fooled into thinking you can predict the future. Just make sure to monitor the trend lines and news developments in real-time.
Good Sources – Where Art Thou?
The bottom line is that you can never have too many news sources. Obviously, most news should be taken with a massive grain of salt, but following the market place will give you a direct source to real-life investment and how investors react at a given time.
Upheaval in the Middle East, presidential elections in Venezuela, natural disaster in Japan or economic meltdown in Greece will all – rest assured – have an impact on the global financial marketplace.
The usual suspects such as Bloomberg, The Economist and Wall Street Journal are all age-old, reliable and constantly updating news sites with fresh and insightful analysis on the markets. You should also rely on niche sites where single assets are monitored and discussed. If currencies are your cup of tea, check out investing.com or FxEmpire for updates and market reviews on major forex pairs. If your cup of tea is a barrel of oil then make sure to peruse the versatile content of Oil&Gas Journal.
Most binary options traders like to trade on short intervals meaning that long term financial trends are less relevant than when it comes to long term investments. Therefore the importance of monitoring the news, like your life depends on it, is the most important aspect of trading – otherwise your only friend is luck and luck always runs out.
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