#1 Guide to trade using news on Binomo

Price direction in the financial markets depends on various elements. News from political, financial and economic worlds have a great impact on what is going on in the markets. The release of such reports can transform the situation in the financial ambience very rapidly.

Usually, you can expect an increase in price when the announced reports are positive. After some negative news, a fall in prices is anticipated.

To be successful in trading while following the news releases is important. This article will guide you through this subject.

The types of news that influence the market

News from the economic world

Different kinds of reports can be found amongst these types of news. These could be the unemployment statistics, reports about inflation and gross domestic product, data regarding retail sales or interest rates etc.

News from the financial world

Here you will find the companies’ financial reports. When figures from a report seem to be better than the predictions have suggested, the price of shares of a company typically increase. When the reported figures underperform the prognosis, the company share value decreases.

News from the political world

A country’s overall socio-economic condition is partially dependent on politics. Political news that can influence the markets include, among others, elections, death of key leaders, impeachments, revolutions and other political events that affect the stability of the government and the economy.

Unexpected circumstances

When some big unexpected events take place, you will surely notice a change in market behavior. And when I say unforeseen circumstances, I am referring to a terrorist attack or a natural disaster, for example. Wildfire, flood, tsunami or earthquakes are also a few examples of what can happen.

How to stay up to date

You can watch the news on television or read newspapers, but it is quite difficult to follow all the information that can influence the market you are trading in. The best way is to keep an eye on the economic calendar which shows the key highlights. This is a special feature on the Binomo platform that allows you to check scheduled announcements. It collects data from numerous resources. You will find it on the panel on the left side of the Binomo platform.

Moreover, you can access the economic calendar on the Binomo Demo website. It is located in the “Free trading tools” tab.

Typically, you can expect the market to be under the news’ direct influence somewhere between 30 minutes and 2 hours. However, it may sometimes extend to a few days.

The economic news on Binomo

Reports from the economic world are of a great importance for the situation in the markets. News on interest rates, gross domestic product, retail sales, unemployment, industrial production index to name just a few. There are many more statistics and surveys announced by major national financial institutions.

Examples of such institutions are the Bank of England in Great Britain or the Department of the Treasure in the United States of America.

Financial news on Binomo

Companies listed on stock exchanges are under the obligation to present financial reports. These include revenue, earnings per share, net income, cash flows and other data. Published reports have an impact on the price of a company’s shares. Basically, when a report is positive in comparison to the prognosis, the stock price goes up. When the information is negative, the price falls. One way or another, financial news influence the markets and that is the reason why you should also be up to date with the annual and quarterly reports.

The example of Q2 2018 financial report

Google’s parent Alphabet released the second-quarter report. It has stated that the Alphabet revenue grew in the second quarter by 21 percent when compared to the second quarter of the previous year. The revenue accounted to $26 billion. The report release has resulted in the rise of the Alphabet’s shares by five point three percent and attained the highest level of $1,275.

To stay in touch with companies’ financial data, you can follow popular pages such as Yahoo Finance.

Political news on Binomo

Political news such as a change of a national leader or revolutions influence the economy on both the country and global levels, and so they do not remain unimportant to the trading world. You can assume that everything that has the potential to create instability in politics is important from the trader’s point of view.

The example of such news is the Brexit referendum.

The Brexit referendum consequences

The Brexit referendum was carried out in the United Kingdom on June 23rd, 2016. This voting resulted in a sudden drop in the British pound price. During one night it has fallen 10 percent against the US dollar. It was the lowest rate in 31 years. People have begun to sell the pound massively and buy the currencies that seemed to be stronger at the time.

As you see, a political event such as a referendum resulted in changes to the British currency and the economy in general.

Unforeseen events

Events like a terrorist attack is very difficult to predict. And so are natural disasters like tsunamis, droughts or earthquakes. But they definitely have the potential to influence a trader’s world and performance.

The recent outbreak of COVID-19 is an example of such an unexpected situation.

The thing is that these unforeseen events can be very powerful and the way the market reacts is normally a lot stronger than in the case of planned date publications of relatively anticipated events.

Remember to check the economic calendar regularly. It may save you time and money.

Wish you successful trading.