We have covered several strategies that are great for beginners in binary options. Since all of these strategies cover technical analysis, let us now check how you can use economic news for your profit but you have to now from what sources to read it. We know that binary options is still new to people and therefore is considered as volatile investment. Even if it is so, rules of economics apply even here. For example, if in Middle East there is something going on, it will impact the oil and even US dollars aswell as companies that operate with that region. Another example can be, if there is a natural disaster in South America which i hope does not happen, it will change the price of coffee to a higher value simply because the supply is not steady. Because of so many possible scenarios, you have to look at the news.
As we know, with binary options, if we simplfy them, we have to choose only beetwen two options. One option is, if the asset will increase over a certain period of time and second option is, if the price of the specified asset will decrease in certain period of time. That is why it is good to keep an eye also on the news. You should always have open some trusted finance source of news since you never know when something new will come in.
WHAT ARE GOOD SOURCES OF NEWS?
It is true that there is no such thing as too much when it comes to this but eventually you will have to pick few websites that you like otherwise you can read news your whole day and not trade. I would always suggest to read news and then check also technical analysis of that asset. If technical does not meet the fundamental as we call this part of news analysis, then i would not trade yet since technical analysis on chart is what is important and what you trade.
I would suggest that you start reading Bloomberg, The Economist and of course Wall Street Journal. These website are very well known in the industry along with Yahoo finance and several others. They are in constant motion as you and they even offer you analysis on what is going on, on the market. If you are a beginner i would suggest that you make a decision and only follow what you want to trade, so niche sites are also great idea since they will ofer you news based on what you want. For example, if you are into currencies then you must bookmark and check investing.com and also FXempire which is a great source for currency pairs and updates. Another example, if you want to trade oil, you have to be up to date on what is going on and therefore it is a must to read oil & gas journal.
Since majority of binary options traders like to trade short time frames there is no need for them what are trends in finance for long term therefore it is a must to follow news. Since price of certain asset can change in a matter of seconds and minutes based on news and hw powerufll it is. So if you will not follow news, you will be blind and will not be able to predict what can happen next.