S&P Trading Strategies that Work
One of the benefits of trading binary options instead of only trading Forex is that you’ll be provided with a more ample variety of underlying assets. Among the many options provided by your broker will be the S&P 500 index. This index happens to be among the most actively traded, which means that there will be no shortage of information in relation to it. Offering a high level of volatility, this index can be a prime choice for trading profitably.
There have been some lofty forecasts in relation to where the S&P 500 may top out at during 2013. Whether you believe the prognosticators or not, there is plenty of reason to pay close attention to the movements of this popular index. By generating the correct prediction and taking action sooner than later, you should be able to generate substantial profits using reasonably low investment amounts. Corporate earnings are among the most important elements.
This information is easy to analyze and easy to profit from.
Pay special attention to the job creation numbers. These, combined with the above mentioned corporate earnings will certainly tip you off to excellent binary options opportunities. Whether you choose to trade with the S&P 500, or other indices, there are going to be a number of important information releases which can sway the value of the index. Having an economic calendar is a huge plus. The better calendars will tell you exactly when to expect these information releases, along with what to expect in terms of potential price changes based on shifts in market sentiment.
Binary options traders are inclined to depend primarily on technical analysis when trading indices, particularly when making use of short expiry time periods. Traders who decide to trade using the S&P 500 are encouraged to think about selecting One Touch trades whenever optimism is high. So as to make a solid assessment, fundamental analysis is absolutely necessary. Late 2012 and early 2013 were prime examples of this need, with talks of debt ceiling and the fiscal cliff. Traders were provided with plenty of profitable opportunities based on this type of news.
The binary options strategy for the S&P 500 is a simple one which involves using times of stronger market sentiment to profit. Although some traders use this index in trading on a regular basis, you can opt to just trade the indices during times when you know for certain that investor sentiment is strong. There is certainly no harm in this, as strong sentiment can create asset price trends which can create massive profits for those who trade digital options.