Perhaps one of the most popular ways of trading binary options online is trading on news and latest events. This is believed to be the easiest form of binary options trading available. After all, if a company released a new product today then all you have to do to predict that the stock prices of that company would go up, right? In reality, trading on news is actually not recommended to newcomers. Trading binary options on news is actually only recommended to medium to high skilled traders.
This is because the value of an asset is usually the most volatile during an important even related to that asset. Newcomers will have a very hard time predicting the movement of the asset during special events.
However, news binary options trading obviously remains one of the best ways to make money online in case you follow a few well-established guidelines. Read this article in order to learn how to trade binary options on news and other events. As said in the introduction, trading on news and events is actually not recommended to newcomers.
If you are a newcomer you should perhaps try out some other binary options strategies first such as pinbar candlesticks and general considerations for money management.
Predicting the movement of markets is almost impossible immediately before and immediately after the release of a major news or event that related to an underlying asset. Mostly only experienced traders are confident enough navigating though this net.
The biggest reason why total newcomers and beginners should perhaps not trade on news is because the value of an asset can fluctuate very strongly before and after a major event takes place. In these stations the movement of the asset is almost never predictable.
Most often even experts are not sure in these cases what the right choice is. However, trading on news and events becomes much easier after a certain time after the event. As such, if you are an experienced and perhaps impatient trader you should not trade 15 minutes immediately before an event and 15 minutes immediately after an event.
During these times, the movement of the markets is not predictable due to the high number of trades performed by others mostly newcomers who have no clue.
If you are a medium skilled trader and have a bit more patience then perhaps you should not trade 30 minutes immediately before an event involving an asset and 30 minutes after that event took placed. This is because of the same considerations as mentioned above. Price fluctuations are less heavy before and after the minute mark, however they are still significant.
So, now you know during which time frames you should avoid trading. You will have the most optimal winning chances in binary options if you trade before 30 minutes after an event involving an asset takes place or 30 minutes after that event took place.
Let us explain why this is so:. Before an event takes place, there is usually a general consensus about the nature of the event. You will be able to buy the appropriate option contracts in this situation.
However, when only around 30 minutes remain before the product launch things will go crazy. During the initial 30 minutes while the event is most likely still ongoing a lot of speculators are still actively trading, which results in the value of the asset jumping around all the time seemingly without any logic at all. However, after the initial 30 minutes, the asset will stabilize and begin to either continually increase or decrease.
This is because 30 minutes in the event like a product launch, for example people will already be able to evaluate the nature of the event. Like, in our Apple example, 30 minutes into a product launch you will already be able to tell the quality of the product launched. If, however, the product sucks or nothing major was released, then you know that the value of the company will decrease. As such, you will be able to make the right predictions and earn a lot of money.
One of the most popular ways of trading binary options is trading on news involving currencies. One of the best ways of doing this is trading on the Non-farm Payroll report released by the US Department of Labor on every third Friday of the month.
This report is a statistic of the US non-farm labor force during the previous month. The report will reveal overall how much new jobs were created or how much were lost in the US during the previous month.
This report always influences the conversion rate of the USD compared to other currencies.
There are basically two scenarios to take into consideration here:. The USD will increase in value.
Learn to tarde binary options using news and events | iwysuhod.web.fc2.com
We already dealt with this situation in our examples above. As hinted, the most common news related to companies involves product launches. If, the general consensus thinks that the next product launch of a company will be successful, then the stocks of that company are expected to increase. If, around 30 minutes after the product launch it becomes evident that the new product launched is great, then the value of the company will naturally increase. You will have a very easy time making a good prediction in these cases.
But like said, just avoid trading either 30 or 15 minutes before a product launch and 15 or 30 minutes after a product launch. This advice is extremely important. And this is how you trade binary options on news, product launches and other types of events. And as said in the intro, if you are a total newcomer then perhaps you should wait trading binary options on news in the very beginning.
Gather some experience with other strategies first. In case you want to learn about more binary options strategies then please read our additional guides and tutorials. Knowing and understanding how a lot of binary options strategies work will hugely increase your overall winning rate. In this detailed and complete guide I will talk about how much money you should invest per trade when trading binary options.
Too many websites claim that you should invest as much as possible but is this really effective Learn to use long-term binary options strategies in order to make money in binary options trading. Find out why these strategies are the easiest to implement.
Learn how to trade stocks in binary options. Trading stocks is one of the most difficult ways to make money in binary trading but if done right it can offer massive winning and payout opportunities. This is an awesome news article for the binary traders especially those who are newcomers or novice traders to the trading world. Thanks for the informative article. The information and trading guides found on the webiste constitute the authors' opinion only.
Binary options involve high-risk and are not suitable for all investors. Binary options may not be legal in your jurisdiction. It's visitors' responsibility to make sure binary options are legal in their jurisdiction before engaging in trading activity. How to Trade Binary Options on News and Events?
Best Winning Tips for Newcomers. Doji Candlestick Technical Analysis.
Engulfing Candlestick Analysis Method. Guide on Money Management. Guide on Trading Stocks Successfully. How Much Should I Invest Per Trade in Binary? How to Make Money with Long-term Strategies. Trading Options on News. Trading Binary Options on News — Not for Beginners As said in the introduction, trading on news and events is actually not recommended to newcomers. Very high price fluctuations The biggest reason why total newcomers and beginners should perhaps not trade on news is because the value of an asset can fluctuate very strongly before and after a major event takes place.
How to Efficiently Trade on News and Events So, now you know during which time frames you should avoid trading. Let us explain why this is so: Trading on news involving currencies One of the most popular ways of trading binary options is trading on news involving currencies. There are basically two scenarios to take into consideration here: Trading news on stocks We already dealt with this situation in our examples above.
Final Words And this is how you trade binary options on news, product launches and other types of events. Notify of new replies to this comment. Share On Twitter Share On Google.