The must have Trading Tool – Economic Calender
Review of the Economic Calender Tool
The economy and economic conditions are important drivers of the world’s financial markets. Keeping abreast of conditions is key for binary options trading success. Using the economic calendar as a trading tool is one way to improve profitability and pinpoint trading opportunities. The calendar is available in many forms in many locations around the web. The best economic calendar for binary options traders is at Communitraders.
The Economic Calendar
The economic calendar is a tool that is used by every trader in every single market, be it the options market, forex market or commodities market. The economic calendar is calendar of economic indicators which are released to the market on a periodic basis. The full calendar for the trading month is available from a variety of sources online. Some of these news releases are high-impact news events which create marked volatility in the markets. Keeping track of the economic calendar is an important part of fundamental analysis and should not be ignored. Most of the market stopping, reversing or rallying events are centered on the economic calendar. Events include things like housing sales and starts, unemployment claims, job creation, inflation and semiconductor sales. These events can impact the entire market and individual stocks in a number of ways.
Communitraders Economic Calendar A Binary Options Traders Best Friend
Communitraders is the new social trading platform from ThatSucks.com (former BinaryOptionsThatSuck.com). It is a forum based platform that allows traders to do analysis, place trades and share them with other users. Trades are tracked on a leader board showing percent returns and win streaks. One of the features of Communitraders that can be used by all binary options traders is the Economic Calendar. It is the most complete calendar I have seen and includes headlines from around the world for each event. All you need to do is register for free and login to CommuniTraders Platform, where you’ll find our economic calender.
Why the Economic Calendar Does Not Suck
If you know how to interpret the news data and use it to setup trades, then this tool will become a money minting machine for the trader. Even if that is not your thing the economic calendar is a non sucking tool. You only have to keep a very loose eye on the events listed in order to benefit. Staying up to date on how the market is responding to data and how the data is trending is like having your finger on the pulse of the global economy. For others, the economic calendar is a great way to predict trades. Let’s say that the BOJ is expected to lower rates at its next meeting. You can target that day as a trading day, set up a couple of trade scenarios and then wait for the announcement and pick a trade.
Why the Economic Calendar Sucks as a Binary Options Tool
It is strictly an informational tool. It does not teach the trader how to take any trade with the data. It is assumed that the trader knows how to interpret the data. If the trader does not know how to interpret the data and use it for news trades, then the Economic Calendar tool will not work for that trader and so in this respect, the tool sucks. However, this is an educational opportunity that cannot be missed. Understanding the workings of the economy, the data and how it impacts the markets is a valuable tool that can never be unlearned. The more you know the better prepared to trade in all conditions.
How to Use the Economic Calendar for Binary Options Trades
Any trader who trades currencies or commodities has to be able to interpret the results of the news releases. In order to see how this tool is put to use in the markets, we will show how the forex calendar was used to execute a binary option trade on the GBPUSD successfully.
Forex calendar by ForexFactory
The chart above shows our news release of interest, the BoE Inflation Report. Now this report has been bearish for the British Pound (GBP) since the global financial crisis of 2008. With the effects of the contagion still being felt in Europe (Britain’s no.1 trade partner), the economic situation has been bad for the GBP. It was decided to bet on a PUT outcome from the Call/Put trade type on the BOM platform.
BinaryOptionsthatSuck.com Financiel Calender
The Final Word On The Economic Calendar
The economic calendar is a must have. If you are an expert I can’t stress enough how much utilizing the calendar will help you with your trading. If you are a newbie start following it. Pick out a few economic indicators and follow them closely. One that most people follow is GDP. It is a measure of economic output. It can be measured by region, country or globally. These numbers are important indications of market trends.
Why should you use Economic Calender? Learn more on our Forum!