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

  1. #1
    asiaforexmentor1
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    How do you trade the news in forex trading?

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    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,
    A complete professional forex trading system that even newbies can apply instantly.
    [Only registered and activated users can see links. ]
    Last edited by asiaforexmentor1; 11-22-2012 at 03:54 PM.

  2. Under 1st Post -dynamo
  3. #2
    Ryad
    Guest

    Hello,

    Thank you verymuch for this information. I've been looking around for 3 months to know how the news work and only today I understood the market. Thank you once more Ezekiel, it really helps a lot this piece of knowledge.

    Regards,
    Ryad(From Mauritius Island)

  4. #3
    bestforexpartners
    Guest

    Hi,

    Thanks for sharing this info. you have given good piece of info its really very useful and knowledgeable post. As every trader should know that the risk management is very important in Forex trading.

  5. #4
    lancelot41
    Guest

    Thank you for this link it's great. I am using FF indicator to get new into the chart in MT4.

  6. #5
    RomanM
    Guest

    For news-trading you should use only ECN-broker, there is the slippage not so bad like "normal" brokers, this is my experience.

  7. #6
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    When news comes out, especially important news that everyone is watching, you can almost expect to see some major movement. Your goal as a trader is to get on the right side of the move, but the fact that you know the market will most likely move somewhere makes it an opportunity definitely worth looking at.

  8. #7
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    Good luck ...IMO, stay away from teh news

  9. #8
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    I usually avoid trading news.

  10. #9
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    Most of the traders avoid news. Its nonsense.

  11. #10
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    dynamo - First and lasp post every thread AXITrader aff
    Thank you verymuch

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