The approach that one takes to trading binary options can and will make a difference in the amount of profit that is generated. There is daily preparation, of course, but weekly preparation is also necessary. Hopefully you do take the time to enjoy your weekend, but also managed to set aside an hour or so to prepare for the week ahead. Not all trades can be planned in advance, but in many cases, entry opportunities are presented well before the markets open.
The first step will be to check the news to see which reports are already impacting investor sentiment. There will also be reports related to the coming week, including information related to upcoming economic and earnings reports. This type of information can definitely help with planning our your week. Be sure to look for news related to all four primary asset groups – stocks, commodities, indices, and currency pairs. Most successful traders would never dream of limiting themselves to only one or two types of assets.
The next step will be to have a look at the technical charts. These may or not be provided by your binary options broker. The best method tends to be starting out with the weekly charts, and then dropping down to the daily charts. Consider noting information such as whether or not a trend is in place, as well as where the key lines of support and resistance are located. Once the day to trade arrives, you can them check out hourly and 30-minute charts to see how the asset price is actually moving. By taking a look at the charts, you’ll be provided with a good idea of how prices may move in the coming week.
The last step will be to note the days and times of prospective trades. This can be done by referring to an economic calendar and earnings calendar. The total list of upcoming data releases may seem overwhelming, but keep in mind that you do not need to concern yourself with all of this information. Instead, there is the option to narrow down the list, choosing the data that is most likely to impact investor sentiment in such a way that price direction forecasting becomes easier. With a bit of time and experience, it will become easy to know instantly which reports to focus on.
Once these three steps are complete, you can rest assured that you are as ready as you can be for the week ahead. You should have a good idea of what to expect with regard to data, and should also have a good idea of how prices have been moving. At this point, you simply need to wait for the market to move, at which entry points will become much more clear. While you may not be able to plan each and every trade in advance, taking the time to prepare for the coming week will definitely place you in a better position to profit from each binary options trade.
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