How can you gain from the election day as a binary option trader?
The strong downward fluctuation on last Friday was triggered because of the FBI announcement regard of re-opening Hillary Clinton email investigation, if anyone had any doubts till today now it’s clarify that the market traders are afraid from the option that Trump will win the elections.
So far, Clinton took the lead by a significant gap which has decreased in the last couple of days, the current prices of the market are already take into consideration the great chances Hilary will win, so as for this week till the results the market is going to be super volatile, with ups and downs for every new piece of information.
Now, when you know what’s happening, you should prepare your trading strategy, which means, there is no point of analyzing the market or try to predict, the following days till the election date are going to be volatile, and most chances the following days will be follow by decline of the market.
The most interesting assets that are going to be affected by the vote is the EURUSD, major indexes such as S&P, Nasdaq and also the Gold.
All three of these asset might create a sharp and volatile move in case Trump will be the winner, as I already mentioned it’s not going to be for the better, the S&P is expected to decline also the major currencies especially the EURUSD.
Gold is expected to rise in case of Trump wins, and decline if Hillary will win.
All-in-all in those kind of days where the uncertain is the most certain thing exist, you should take extra precaution, there is no point to place a trade if you are not sure and planed ahead.
This period of time is a good opportunity to plan your trading strategy, start with writing down your goal as a trader, open a money management sheet where you can define the risk you able to take for each trade calculated carefully with your balance, this period of time is a great opportunity to plan your steps to become a successful binary option trader, be a pro, all your actions should be documented into one trading sheet, in order for you to learn not only from tradings you won but especially from those trading you lost.
Inquire your current method of trading and the strategies that you are using, if you don’t act by any strategy, this is also a great time to embrace one and to act upon,
Here are some of the strategies you can learn from and some tips for money management.
Now let’s review some assets:
Oil – the resistance line which was broke out few weeks ago is turning now into a support line, the first and closes price target is suppose to be 46.7, of course it is only an estimation and you shouldn’t take it for granted but in case of market declines this should be at least the first target.
Oil – Daily chart
S&P – not only the fundamental news support a decline it is also supported by the indicators, especially by the stochastic indicator which is above 80 and shows a cross between the lines at the monthly chart – it’s a signal to prepare some short moves
S&P Monthly chart
In case you follow my weekly analysis, i mentioned couple of weeks ago that the gold has reached a support line so it suppose to continue the long trend of uptrend.
Gold Daily chart
Thats it for this week , as i mentioned you should take lower risk and trade only for triggers you are sure about.