In order to trade successfully on the global financial markets it is important to keep up to date with the latest political, economic, and financial news. We live in a world characterized by extreme political and economic volatility. Armed conflicts are prevalent, terrorist attacks are rampant globally, and countries occasionally run out of money, just to name a few issues. Running a successful trading strategy requires a solid source of Binary Options News.
Reasons why Binary Options News is important
Events such as these and other kinds besides impact upon the stability of and fluctuations in the financial markets. Ergo, the greater the global volatility, the greater the market volatility and vice versa. If the news is good, then the financial markets are up and if the news is bad, then the global markets seem to slide into a downward spiral. Unfortunately, this is not a hard and fast rule but it is true most of the time.
The markets have an innate ability to absorb the negativity sometimes associated with an event, such as for instance, Brexit or the US elections. We refer to this as the markets ability to ‘price in’. For example, if a global corporation such as Apple, Google or Coco-Cola, is about to release its annual results, the corporation will announce a short while before the release date whether the expected results are good or bad. This will allow the global financial markets time to get used to the idea that the results might be bad, thereby preventing a downward spiral.
The same applies to major political events. If a major world event such as the 2016 USA presidential elections is pending for a while, then the markets will often price in, or make allowances for, the potential of a negative outcome.
Another kind of ‘price in’ is where the markets get used to a global event such as the war in Syria. This war, amongst others, has been grinding on for years without any direct winner/loser. It’s become old news and, by inference, does not affect the price of things in global financial markets any more.
Opinion polls: How accurate are they really?
The financial markets also rely heavily on the results of opinion polls conducted by expert statisticians and binary options indicators. They are usually a gauge of human sentiment as well as a good indicator of how global events will play themselves out. Can you imagine what will happen to the financial markets when the results of the opinion polls are contrary to the current sentiment? An example of where the statisticians called results of a major global event incorrectly is the 2016 USA presidential elections. The opinion polls said Hillary Clinton of the Democrat party would win the elections. As usual, the global financial markets had priced in the possibility of Donald Trump winning to a certain extent, but however, based on the results from these opinion polls the overriding sentiment was that Hillary Clinton would win the elections. To many people’s shock, including the financial markets’, Donald Trump won the elections. These results triggered a major downward spiral with investors moving their stocks out of the riskier markets and into safe-haven stocks and hedge funds.
Ways of keeping up with current affairs
Now that we have determined how critical it is to stay up to date with the global news, let’s look at how we can keep up with what is happening in the world.
Subscribe to the major global newspapers. Browsing through all the global newspapers on a daily basis is going to take up a fair bit of anyone’s day, unfortunately for some, taking away time from trading on the global financial markets.
Subscribe to an online news aggregator such as Flipboard. You can choose which online newspapers, websites, and blogs you would like to follow, allowing the app to sift through the mountains of news articles for you.
The best option is to subscribe to the Stern Options YouTube channel. The daily market review video provides a summary of the financial news is applicable to the next 24 hours on the world’s financial markets. This news will impact on your trading decisions so it is good to know what is going to happen.
Final thoughts on Binary Options News
Binary options traders are always in a win-win situation. Why? Simple answer, whether the price goes ‘up’ or ‘down’, either way one can always win with binary options.
However, the world’s financial markets are littered with the vain hopes and hunches of those whose self-belief has single-mindedly led them to make investment decisions without a basis in cogent analysis or the benefit of rationally informed opinion. Therefore, it should be an indispensable principle of decision making in one’s binary option trading methodology that spending time studying the relevant Binary Options News beforehand is what really defines the best way to win.
Staying on top of current world affairs can be a daunting task. It is not easy to sift out the “wheat from the chaff.” Fortunately, the Stern Options newsroom is able to put together a relevant, concise package of Binary Options News with the core themes for the day as well as an expert interpretation thereof.