As we’ve mentioned in our binary option strategy articles, the most important thing is to follow the news if you want to make a high return from binary option trading.
For example, this week Obama released information that job loss has slowed. This means that the forecast for most businesses will be positive and options will start to move up. This is the lowest job loss level in nearly two years, according to the Labor Department and MarketWatch.
“The long, slow recovery is under way,” said Bill Hampel, chief economist for the Credit Union National Association.
What does this mean for binary option trading?
Market volatility is slowing. While binary option trading can make money for traders in both quiet and volatile markets, it’s important to know what market your trading binary options.
If job loss is slowing, that means that the market will start to make a slow steady recovery. That means if you’re a binary option trader and you want to invest in a binary option, you should known that in the next week, a big lift to the stock market is expected and the dollar will rally against other major counterparts.
Segment Your Binary Option Stocks
When your trading binary options, it’s important to know what you’re trading on. While most of the binary option trading platforms online offer a host of well known stocks, like Google, Amazon, Microsoft, Walmart and more, you must know what industry each stock is in.
Once you’re clear on the industry, you can follow market trends like the one’s MarketWatch has mentioned:
Service-producing industries added 58,000 jobs, the second straight increase. Goods-producing industries cut 69,000 jobs, the fewest in 18 months, according to a survey of hundreds of thousand of business establishments.
With this information, it would be good to pick the “call” option on binary option trading. Because companies that are hiring people are likely to be doing well, and hence their stock prices will go up. On the other hand, if a company is laying off employees, it’s a good idea to pick the “put” option, because we can assume that the stock will go down in value.
Now, if you were a typical trader on the stock market, you wouldn’t have the opportunity to make big money from stock losses. However, within binary option trading, you have the opportunity as a trader to make money on both rising and falling stocks, if you read the news and play your cards right.
Read Government Statistics to Make the Best Binary Option Trade
“There is pretty clear evidence of underlying progress toward labor market recovery,” wrote David Greenlaw, an economist for Morgan Stanley.
“It is no longer a question of how many more jobs we lose but rather how quickly we add them back,” wrote Dan Greenhaus, economist for Miller Tabak & Co.
Service-producing jobs rose by 58,000, including 86,000 in professional and business services and 40,000 in health and education. Temp-help jobs – considered a strong leading indicator for permanent hiring — increased by 52,000.
Retail industries cut 15,000 jobs. Finance cut 10,000 jobs. Information cut 17,000 jobs.
Of 271 industries, 40.6% were hiring in November, the highest in 18 months.
So what does a Binary Option Trade r do with these details?
Binary option traders should be selecting “call” for all service based industries because as the companies add jobs, the stocks are bound to go up, adding jobs is always viewed as a positive move.
On the other hand, the weak retail industry return, the slow Black Friday etc. indicates that binary option trading should be done on “put” options for all companies in retail, like WalMart.
Hope this news analysis has helped you out. Read more at Binary Option Trade .com to conquer binary option trading and make the high return you deserve on smart investments.
