Do you know how to use the news when trading on Binomo?
There are a number of factors that can influence how, why, when, and where consumers make which purchases. Multiple reasons can drive the needs, wants, and desires that describe the target market.
One of these influences is the news. Whether it’s something read offhandedly on the web or watched in the late-night news show on TV, the news can affect how and what the target market thinks.
In this article, we’ll discuss the different types of news that can influence trading and how knowing how to use the news when trading on Binomo can impact your trades.
Types of news that can influence trading
Most types of news that can lead a consumer’s decision-making process can be classified as either economic, financial, or political in nature, a mixture of any two, or sometimes all three.
For example, news about how the country’s tourism industry is thriving can indirectly cause currency rates to go up. Meanwhile, news about civil unrest can trigger the crash and burn of stock prices. These are very important when you’re trading on the Binomo platform.
The economic news reports on, in the simplest sense, how a state allocates resources and produces and consumes goods and services.
More technically, they describe the structure of the resources of a state through its gross domestic product and gross national product, as well as currency exchange rates, inflation rates, interest rates, debt, and the balance of trade. They also describe the situation of the members of the state such as with the unemployment and under-employment rates and trends in consumer spending.
These releases usually result in knowing which industries within the state are prosperous, which are promising, and which are expected to show a decline. Understanding consumer spending trends can also lead to investments in areas where customers are more likely to spend their money.
News on the financial standing of companies affects how their clients, consumers, stockholders, and even their partners view them. For one, the better the company’s financial figures are compared to the forecast, the higher its share price goes. This is also the same the other way around–if the company’s profitability is less than the forecasted, then its share price will most probably go down.
It’s important that traders keep up with financial news because knowing which companies are making strides financially or are expected to do so for the next time period is a basis for third-party entities in building partnerships and determining investments.
Who gets voted as the government leader greatly influences which sectors and industries of the state receive the most and the least support. Political instability, which can possibly be caused by events such as a revolution, either armed or peaceful, and impeachment or death of a major political leader, can induce major shifts in market trends.
Additionally, low possibility but high impact events such as terrorist attacks or epidemic outbreaks can greatly slow down the market from using its buying powers. Natural disasters like earthquakes, hurricanes, tsunamis, and floods can significantly change the prioritization of the industry players’ production and the market’s consumption, if not totally freeze them.
While individual opinions can also be subconsciously influenced by the news for the long term, these vary case to case due to the years of cultural and social conditioning an individual goes through.
In general, the market’s reaction to a news item usually lasts from 30 minutes to two hours, although it can last up to three to four days depending on the severity of the repercussions, the scope in terms of land area, and the coverage of sectors affected by the chain reactions. Make sure to keep this in mind when you’re using the news as a guide while trading on Binomo.
Using the news feature on Binomo
Luckily for Binomo traders, the company actually offers this feature right on the platform.
To view the News feature, simply click the calendar icon on the left-hand panel of your Binomo trading chart.
You’ll then be able to see all the important economic news that can impact your trading in bite-sized paragraphs. This means you don’t have to spend extra time reading news stories – you can just view the most important, straightforward parts on the Binomo platform.
Of course, if you’re interested in what you just saw, you can always opt to read more about the topic. To do so, just click the button, “Read More” and it will show you the rest of the article.
Granted, right now, the only type of news available on the platform is economic, so you’ll have to look elsewhere if you want to see, say, political news. But it’s still a very important feature that you should utilize if you want to take your trading game to the next level.
Why news is important in trading
Knowing how to use the news when trading on the Binomo platform is vital to a successful trading career. The news is actually one of the most accessible sources of factual information, even in trading. The ups and downs of the economy reflect the market’s position relative to its buying power. The financial status of a company or industry guides the decisions made by the other organizations in the same supply chain as it. The political air of a country determines the confidence or hesitancy of the market to splurge.
With the knowledge the news provides, you can make an adequate resolution to the trading dilemma you’re mulling over easier. And of course, if you haven’t yet, make sure to sign up for a free demo account on Binomo now to practice using news when trading!
Good luck on your trading journey with Binomo!