How To Trade Into A News Number With Binary Options
If you’ve ever placed a trade, just to find out that because of some news report, the market changed and went against you, you’re not alone.
You’re stuck shaking your head and saying, “Wow! Where did that come from?” This happens every time there is a change in the markets because of a report on the news. Maybe it was an important person speaking about the economy in their country.
Maybe it was a giant company reporting their earnings. Maybe it was the retail sales report. Regardless of what report is driving the news, it in turn drives the markets. You may think that because you only trade futures that the earnings report doesn’t apply to you, but it does because stocks move stock indices.
These upcoming news reports are published months in advance, so you should be informed enough to know what’s coming. It may not concern your market or it might have a consistent impact on your market and it will give you a heads up to know to tighten a stop, hedge a position or not place a trade until the news impact has subsided.
Having a correct expectation of movement is part of what will put you one step ahead of everyone else. Knowing when there is going to be a market moving event released will help you establish a plan for your trading when the news does come out.
No one wants to be caught off guard. Being cognizant of news that might affect the markets will help you know how to respond. There are also times when things happen in the world that aren’t in the news trading plan. These can range from natural disasters to airplane crashes or terrorists attacks. They can have an impact on the market. It’s a good idea to subscribe to a live newsfeed service and be tuned in to the world in which we live.
There are many different strategies that you can employ to profit from the reports as they come out. There are ways to trade binaries pre- and post- news. There are butterflies, straddles, strangles and condors. Some are best when used on spreads while others perform better when used with binaries.
Some are set up to be applied shortly before the news is released and others need time decay to help you achieve the best results.
All of these great options are strategies you can use in your trading experience. Learn what is involved and then practice until you’ve got it mastered.
You can collect premium on Implied Volatility Crushes, make premium when implied volatility inflates before news, go directional with capped risk and high leverage in your favor, hedge positions with Nadex spreads, do strangle or straddle with Nadex binary options or Nadex spreads and more.
To learn more about each of these dynamic trading strategies, go to www.apexinvesting.com. Apex Investing Institute offers free education effective tools and a room community of seasoned as well as up-and-coming traders.
Together in a supportive environment, along with trading tools for ease and convenience, traders of all levels can learn how to trade Nadex binaries, binary option signals, and spreads as well as futures, forex, stock and options, and gain an edge for successful trading overall.
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.
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