To
judge the price as going up or down you should know how to judge the inflation
process. Consumer price index,
employment cost index, employment situation, producer price index, productivity
and costs, real earnings, US import and export price index, and more… you
should know them to surf in the sea of call or put in binary options trading.
You
should know how the different factors are wired in to your asset type and you
should know how to make the decision based on the different market forces and
their immediate influence in the economy of the asset type you might be dealing
with. Well, most of us in to binary
options trading will know that there is something called consumer price
index. However, what does this consumer
price index has to do with the call or put decision you are to make matters in
the doing.
You
understand that the consumer price index is important for the asset type you
are dealing with and you have the index and you do not know what to do with
it. This is the most harmful of the
stuff that can happen.
The
consumer price index reads like “The Consumer Price Index for All Urban
Consumers (CPI-U) increased 0.1 percent in September on a seasonally adjusted
basis, the U.S. Bureau of Labor Statistics reported today.” So, how do you react to this and what has
this news to do with your decision making in binary options trading is a point
to think of…
If you are planning to trade
in September you should know about what this increased 0.1 percent data can do to your
asset type.
An index is a measure of
something in layman terms. Consumers are
those who are using it. Consumer price
measurement increases means the prices have gone up on an average for all the
consumer goods! So, what are consumer
goods? Shelter index, medical index, grocery store food index, energy index, ..
this means the price has gone up for all these products.
Think if this price is within
the support and resistance level. Common
sense* if the price is too high it is sure to come down! When? This is brain
work for binary options trading.
