Traders with a limited number of assets prefer to trade based on news and the economic calendar . Binarium broker specialists are confident that for them this method of analyzing each option is one of the most convenient and promising.
What news is there?
You can prepare for news and even make a trading plan after it comes out, but not always. It all depends on which category they belong to. In addition, the connection between the news and the asset is important. Not every news affects the option price. The task of a news trader is to determine the degree of influence of the news on an asset and to predict the market reaction.
There are three types of news:
- permanent;
- expected;
- spontaneous.
You can track ongoing news in the economic calendar of events. It is freely available on the Binarium website. The release date of such news is known in advance and they are repeated from month to month, from quarter to quarter, from year to year. The list of such events includes quarterly and annual reports of large companies from economically developed countries, etc. For example, these could be reports on the level of consumer loyalty, financial reports, etc.
Scheduled news is expected after short announcements of events. For example, it is known that the head of the European Central Bank will speak on Wednesday, but it is unknown what he will talk about. You also need to prepare for such news and have at least two effective plans of action in case of different turns of events.
The words of officials and politicians can undermine the economies of countries, so the financial market reacts to them sharply and actively.
That's why spontaneous news is called that - its appearance and consequences cannot be foreseen in advance. Spontaneous news includes notes about disasters, terrorist attacks, and political coups. They appear unexpectedly and also unexpectedly, but actively change the situation on the market. This is why trading on spontaneous news immediately after its release is not recommended. It makes sense to wait from half an hour to two hours to understand in which direction to act.
The principle of news trading
In order for binary options trading to be profitable, you need to stick to a trading plan and work on an effective strategy . Binarium experts suggest starting with a simple thing - acting according to the mood of the market, that is, monitoring the reaction to the release of news, opening transactions in accordance with the situation.
Without enough experience and practice in the field of trading, it is difficult to predict the situation before the news comes out or in the first minutes after. Trading with the trend will reduce risks.
Don't forget about the connection between the event and the asset. Not all news affects the option price. Analysis will help you understand how close this connection is and whether it exists at all.
And one more thing, the market does not react to all news. It happens that an event goes unnoticed. This happens when the forecasts have already been “worked out.” The market reacted to the news before it was released and remained out of the game at the moment it appeared.
Economic calendar
News trading and the economic calendar are invariably linked. News release dates, taking into account time zones, are marked on the calendar; the trader can only monitor events and prepare for them in advance. Naturally, this applies to regular news.
An economic calendar alone is not enough to track events. To understand what news will sweep through the market with what force and whether it will affect the options used, you need to know the basic principles of the economy, understand politics, be able to analyze, compare facts and draw the right conclusions.
All of the above can be learned, but what does not depend on the trader is the broker’s conditions. If a company is initially committed to deception and fraud, even the most in-depth analysis and correct decisions will not help to achieve profit. This is why it is so important to first find a reliable broker and only then focus on news trading.
What do you need to know about restrictions?
Trading on news and turbo trades with expiration up to a minute are incompatible. After the news comes out, the market needs time to react somehow. The reaction is not always stable and is difficult to predict in the first minutes after the event. That's why you need to wait until the situation more or less stabilizes.
The type of options also matters. For example, double tapping or laddering are ineffective in event trading.
Another thing is currency pairs. In news trading, such assets are the most promising. News on each of the pair’s assets and correct forecasts will allow the trader to open successful trades with a profit of up to 90%.
In conclusion, let us add that trading based on news has the right to life, moreover, it brings profit to everyone who treats the process responsibly and thinks through several variations of the trading plan in advance, but only if the broker works honestly.
See also:
How to verify an account with Binarium
How to open a new account with Binarium?
Mobile application for binary options broker Bianrium
What are the benefits of a VIP account with the Binarium broker?
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