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How do economic markers help planning your strategy?

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Following economic data gives you an outlook of the general market direction

Smart traders know that economic indicators can give them a general outlook on the market's direction. Information concerning the health of the economy such as GDP, home sales, employment, and consumer spending give investors knowledge that helps them plan their strategy accordingly.

US Census Bureau

Monthly the US Census Bureau releases a wide range of statistic data concerning consumer spending, estimated GDP and others. Experienced traders know that this information usually has a strong effect on markets, especially on equity and derivative ones and do not miss its release.

US Bureau of Labor Statistics

Traders also closely watch data coming from the US Bureau of Labor Statistics. Some of these indicators include employment, producer prices and productivity. Following broad indicators is important as Investors know that a monthly drop in GDP growth will sometimes lead to broad selling, this way bringing indices like S&P 500 and Dow Jones lower. The U.S. Department of Commerce also releases important market information that includes retail sales, personal income and balance of trade. Still, when new economic indicator information is released the volatility it could cause on the market could also bring high-risk conditions for trading along with it and that is why planning carefully your strategy is of major importance.

Economic indicators

Economic indicators are a good tool for binary option traders with a strong instinct for market movement but they should know that a great number of other factors also affect market trends. However, a general outlook on the direction of the market is always useful for binary option traders who want to ensure that broad market forces work for them and their profit.

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.

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