News Trading

News trading is a form of forex trading that involves keeping up-to-date with events going on in the news and trading based on those events. This is a form of trading that we wouldn’t recommend to everyone because it can be quite difficult if you don’t know exactly what you’re doing. However, for some people it has worked out very well.

If you are someone who is considering trading the news we would suggest finding a subscription to a timely news feed. This will be vital to your trading as you will need to stay on top of everything that is going on around the world. You may be able to find some free services that provide on time news feeds but there are several paid subscriptions that you can use also.

Another very important aspect to this type of forex trading is making sure that you find a trusted source. Some of the main financial media will offer both free and paid services, but the paid services will get news releases before the free services. Being able to obtain the data immediately when it comes out can be the difference in a profitable trade and a loss.

Since there are only eight major currencies that most forex traders are looking to deal with, it makes it much easier to choose which currency and economic news releases you will need to follow. As many already know, the U.S. dollar is most prevalent in currency trades, which makes U.S. economic releases have the heaviest impact on the market behavior.

To many people, news trading sounds like it would be an easy way to go about trading forex. All you need to do is keep up-to-date with economic news releases and then trade based off of that. However, trading the news can actually be quite a difficult task. With the news having such a big impact on the market, it can make the forex market very volatile. This makes for trades to be much harder to achieve. Also, traders need to be careful not to be stopped out before a move has been given a chance to progress.

When practicing news trading, the most common way to go about it is to examine previous charts to a particular number and look for periods of consolidation in preparation for that release. Then you look to trade the breakout that follows after the figures have been made public. When trading the news you can either trade intraday or based on the daily charts, since the effects usually last for more than one day.

Release of News Events

When trading the news you will need to be aware of the different times throughout the market when the news releases are issued. In order for you to be a successful news trader you will need to pay close attention to these times and always be on alert during the news releases.

Trading the news can be a very effective way of forex trading if you are able to keep up with what’s going on around the economic world. Once you learn how to become an effective news trader you can look to start making bigger trades based off of certain new releases that can end up being extremely profitable for you.