Timing is essential in
all financial trades. With option the
fluctuations may be the whole thing! The most appropriate investment saying for
it might be, "Buy at the right time"!
For example, you may be certain that an asset will rise in value. You are
correct, and the asset rises in value during the day, week, etc. But as it
was rising it had a few moments of backtracking. If you bought a binary option
for the asset to rise, but you timed it for the short period when it lost a bit
of value on its way up, you will lose money on the option even though your
analysis was completely correct, long term.
To calculate the average
monthly range one will need access to
reliable historical prices. For any stock, you can get historical open, high,
low and closing prices for a given date range. This will give you all the key
numbers that will be used in the calculation - the high and the low for each trading day. The average
monthly range is nothing more than an average price within which the market
fluctuates in a given month between its high and its low.
Information that Affects Timing
The following points are items that
can affect a traders timing:
·
Company earnings reports
·
Government reports
·
Political or social unrest
·
Sudden introduction of a competitive product
·
Volatility. If the asset is being traded more widely than
usual, it often indicates strong market sentiment for the asset to continue
moving in the same direction for a while.
