Do You Need Market Reviews?
One of the most common trading tools provided by binary options websites to their traders are weekly or daily market reviews. These reports are news briefs which let traders know some of what’s going on in the financial world. They might include information on financial news reports (like the NFP), speeches, events, stockholders’ meetings, currency fluctuations, and so on. The news reports are touted as being quite useful, otherwise they wouldn’t be so common. Many sites seem to have them in place of other resources. So the obvious question is, should you be using and relying on them? Will they help you with your trading?
Trade Using Fundamental Analysis
The answer hinges on how you trade. If you trade using fundamental analysis, this is a great tool for you, though you don’t want to rely 100% on it to make trading decisions. Instead you should use the information included in the reports to point you toward news to investigate further before you make your choices. These reports should be treated like possible trade alerts, not comprehensive sources. If for example you see a notification that a report is coming out later in the day, you can then look up information on the report and the issue it addresses and decide whether to trade. To be good at fundamental analysis trading, you need to be a market expert. We’re guessing for you to have gotten this far in this article, you’re not one yet. So you need to become one before you trade this way.
Trade Using Technical Analysis
If you trade using technical analysis or price action, you may find the reports useful. Traders who trade using these methods usually do one of two things where financial reports and other major events are concerned: they trade right through them and ignore them, or they avoid them like the plague. Neither choice is really “better” than the other. What’s best for you comes down to your results during testing. If you find out that avoiding financial events helps you to achieve better results, then avoid them. If you find that you can trade straight through them without consequence, then trade straight through them. Well-established systems with reliable entry indicators often steer traders around major financial crises automatically.
If you decide to steer deliberately around major financial events, you can check the daily and weekly reports and economic calendars for alerts to avoid trading on certain days. If you trade straight through events without worrying about them, you can ignore the reports and calendars entirely, if you wish. Paying attention to them might actually make you second guess your trading decisions, which would be bad.
Whatever you do, be consistent about it.
Ready To Start? Check out some of the market reviews: