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strategyMarkets had a very mixed day yesterday and it could be more of the same today. With US stocks all over the map, things just might get ugly today as there’s a bit more news and a bit more that could send markets into hyperdrive today. But first, let’s recap the day that has passed. The S&P stock index in the US fell slightly, by a figure of 0.37% to 1791, proving that the resistance at 1800 is going to be a serious obstacle to the index’s future growth prospects. The DOW actually finished the day slightly higher but by only a slim margin as it rose 0.09% to 15976.


Binary options traders will be highly focused in the coming day on the proceedings in the DOW index for the simple reason: it’s aligned properly for a strong break above 16000. For binary options traders, a break above this level will obviously open up the possibility of further increases for the index which is already under a lot of upside pressure. Pardon us for making this sound somewhat negative as it’s not. The fact is, the upside pressure is simply not sharp and direct. We’ve had a very swift increase in stock prices over the entire year of 2013. But the corrections we’ve seen, short as they may have been, were abrupt and unforeseeable. This is why we’ve erred to the side of caution with some of the other indices like the Dow. On the other hand, the S&P has been a far more stable and direct index when it comes to the behavior viewable on the daily and even hourly charts.


For binary options traders, as mentioned above, there is more in the way of news to help direct the markets. However, if you expect things to be more orderly, you may want to revise your thinking. The news of the day, although not plentiful, is full. We start things off today with the ZEW Survey – Economic Sentiment in Germany at 10am GMT. The previous figure was 52.8 and the market is expecting now an increase to 54. This is an index that tends to have an effect solely on German stocks, German stock indices, and the EUR/USD. Nothing else will likely exhibit any fluctuation when this release hits the market.


Frankly, the news to come out after this report is minor at best. So don’t pay attention to the noise but keep very focused on the charts. It’s very critical as a binary options trader to keep the wheels of your trade moving. Much like in American football, the key to success is to keep your feet moving forward no matter what. Such is the same with trading, The more trades you make, the more likely you are to get into a groove and find your niche and then you can plow ahead. The whole idea of trading is to be in the market for that special moment. That moment when all your training and hard work come together and you can push a large trade in at the right timing and come out with a massive profit. You can’t expect this to happen in 1-2 trades or even 10-20 trades. This takes tens of trades a week just to get into the right mindset. The best traders are actually doing this daily and that again is just to keep the wheels moving – not necessarily to create profit. The real profits might only come on a singular trade done in a particular week. But you keep plugging away so you are minded to the work at hand.

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Adam Stone
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Adam Stone

As COO of GOptions, my first and foremost goal is to provide traders with the most up to date info from the markets. I have been trading the markets since 2004 and have been involved with stocks, binary options, and forex trading since then. I have had no formal market education and pride myself on a self taught approach to everything related to trading. I try to focus though on both the technical and fundamental aspects related to each trading day and bring forward the most important aspects of risk/reward in the market.
Adam Stone
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