The investment-company Russel Investments has published its “Annual Global Outlook” for the
year 2013. In this report, appearing annually, opportunities and potential risks that could concern investors in the following year are summed up. The report predicts that there will be a worldwide moderate increase on the stock markets because the economic situation both in the USA and in China will improve.
Though the trend tends to global recovery, the environment for investments still stays very
volatile. Especially the euro zone has to face problems concerning the topic “inflation” within the next twelve months.
Knowledge about underlying assets is indispensable
For investors being interested in buying binary options, the increase of the global economy combined with high volatility represents good news. Lucrative opportunities can be the result for traders. In order to start a financially profitable trading year you should as a binary options trader consider a few basic aspects.
Due to the constantly changing value of underlying assets, especially an extensive expertise is essential. Already before traders start trading with binary options according to certain underlying assets they should have dealt with them for a certain time. Indeed, when trading the short-term development really matters but you can acquire the knowledge concerning the respective underlying asset already before.
Thereby it is not only about what the underlying asset is about. In this context, as far as commodities are concerned, the most important manufacturers and the greatest consumer markets would be important. When a stock price acts as an underlying asset you should deal with the products or services of the respective company in order to be able to judge its development. Apart from the fact that you get to know more about the underlying asset itself you can subsequently better estimate how it will develop in its respective market environment.
New traders should operate with caution at first
Apart from extensive information you should know about an underlying asset also the appropriate strategies when trading with binary options are essential. Traders can, for example, develop their own formulas for the technical analysis or rely on the advices given from experts. Copying strategies having well worked for other investors is definitely a reasonable option, too. Planning is helpful in either case when you plan the return you want to achieve with trading binary options in advance and thus avoid losing self control later on.
Those who just have started trading with binary options should not immediately invest high amounts. It is rather important that you have your situation under control at any time. As a trader you should know when you can risk more and when you rather have to act with caution.
Hence, a feeling for the markets and the right trends is indispensable. In order to develop
this feeling you should even accept small losses at the beginning.
In the end, it is necessary for both new and experienced traders to observe the development of the markets in general. Even the best technical analysis is worthless when an underlying asset develops in a negative direction due to a general sell atmosphere although the technical indicators argue the