Winning Strategies For Binary Trading

Gaming the News Ticker

What traders of binary options ultimately are looking for is change in the market. How can you as a trader predict a trade in the market?

If you do your research correctly, you will find that there are certain predictable changes in the market. Newsworthy announcements, and even routine ends and beginning of quarters, months, and weeks can all bring a downward or upward turn in stocks, currencies, and commodities. Research whether or not the instrument will rise or fall in expectation of the earnings report, or due to a particular announcement or end of the month, week or year. How much is it usually expected to change? For how long? Predict correctly and you will come out ahead.

Be on the lookout especially for:

· Financial crisis of countries – One man’s troubles is another man’s opportunity. The Greek crisis was an excellent opportunity to predict the downward turn in the Euro on a monthly, weekly, or daily basis.

· Quarterly earnings reports – Major companies provide reports every three months on the state of their earnings, the difference between their actual earnings and predicted earnings, and often announce their future predicted earnings. Often trading of public companies is paused right before these announcements, and traders are positioning according to anticipated results of the quarter.

· Buyouts or bankruptcies- The government involvement in bailing out a company that has announced financial woes or the success of a company bought by a larger company can signal changes in the market.

· Managerial change – Caterpillar announced a new CEO and Board of Directors for July 1, 2010 and stock rose in June after the announcement. CEOs or managers in big companies carry enough responsibility and respect (hopefully) that a replacement can shake the price of the stock of that company. A replacement of a CEO can also signal major problems in a company, like the replacement of Hayword did at BP.

· Calendar change – The beginning or end of each week, month or year brings a range of different forecasts from investors and traders in all of the different markets. Even a holiday weekend or season can cause changes in the market. Do your homework and figure out the direction of change for stocks, currencies, and indices and invest accordingly.

Of course there are always surprises too! You can hedge your bets in case of an unexpected change in the market. See our previous blog post on hedging for an explanation of this trading strategy.