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asiaforexmentor 01-03-2012 01:16 AM

How do you trade the news in forex trading?
How do you trade the news in forex trading?

A lot of people have been asking on how to trade the news.
although i strongly do not recommend just trading based on news only, but here’s some pointer.
1. News are categorised into the level of impact. low, medium, high
just like the word high, high impact news can change the trend of the market. changing a downtrend into an uptrend and vice versa.
some medium impact news do have such capability too.
2. watch out for the upcoming important news weekly and daily.
and note which pair will the news affect.
3. if you are in a position and there will be an upcoming high impact news in 2hrs time.
take either half your profits first as the market will start going frenzy usually 2hrs before the news. shift your stoploss to breakeven. this way, if you are going long and the news impact reversed the market, you still got half your profits and broke even on the other half.
4. if you are not already in position before the news. wait for 10 mins after the news is out before entering. as in the first 10 mins, you will see price go spiking around and it happens alot of time when once the news is out, price goes spiking up real fast. you will be there thinking if you don’t catch the boat now, you are going to miss a hell lots of pips. and when you got in at the high, price went spiking even faster downwards. what the..?!
did this happen before to you? Don’t worry,it happens to every one.
this is how the market works.
one reason is that when the news is out, major players throw in a sum of money enough to move the market up. when people sees the market moving up, they jump in to push it even higher as they went in with the ‘fake’ movement. the major players then wait for price to go up high enough and then they step in to throw in large influx of money to short it. gaining great amount of pips in a short period of time. i know this happens, and it happens a lot of times.
the other reason is that, the market is based on sentiments. even though the news is positive, and people start buying it long. making the market move up. but if the general market feel that the news is not as good as expected or for some other reason. the big players and professional traders will start shorting it. leaving the losses to those who just traded on positive news.
therefore, one way to go around it is to wait for 10 mins after the news is out to evaluate the REAL market movement before entering.
but as always, i highly recommend adding price action confirmation to it. then you have a high probability winner.
i hope this article helps and leave me a comment to let me know how you feel or any additional input you would like to add are welcome.
Asia Forex Mentor,
Ezekiel Chew

Neha Agrawal 08-08-2016 04:08 AM

The best advantage to trade the news in forex trading is that it is opened for 24 hours a day. Economic data will directly responsible for market movements. on daily, atleast seven piece of data is released from eight major currencies. It creates lots of opportunities for the traders of news.

James Charter 06-16-2019 06:25 AM

I believe people just don’t understand a lot about news trading, which is why they consider that something extra-ordinary is needed during this phase. However, I believe that’s not needed as we only should have common sense to benefit from and that’s all.

It helps with a quality broker like I have in FreshForex, who never restricts me to any style of trading and with features like 101% Tradable Deposit Bonus, it only makes the job easier for me.

scarlettsmith694 07-10-2019 05:51 AM

Investor should check the asx stock market news and they have the good understanding of forex trading which is important for any investment.

James Charter 07-14-2019 12:45 PM

As I said earlier, it’s FreshForex all the way for me. I find it so much easier with them using their Market Analysis facility, it just makes the job simpler and easier for me in so many ways. With a quality site at your watch, it just makes the work so much simpler and better in every way.

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