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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?

news.jpg

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 from www.asiaforexmentor.com

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Some stated that it is better to open trades after the news since those times will have the changes happen. Some wanted to trade after it to have good profit when the news will give profit. Well somehow im still not able to find out how to follow the forex news since they have big role in our trades.

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  • 2 months later...

The first thing a trader should do when an economic news event is to be traded is to first understand the nature of the economic event to be released. Next is to understand how this economic event will affect the markets, high or low impact. It is the high impact events that are commonly traded by forex traders.

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As for me I still hold my possition that news can be traded best when we listen to the news of a country pair which we wanted to trade and the out come can now become our decission if we should enterlong or short,regarding the economic situation of the country.

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  • 4 months later...

News trading also consider as fundamental analysis is one of the most purpolar ways to trade the forex market first of all a trader need to get himself listen up to the news and doing some indept forcast of the news this realy do help for better performance and improvement.

Trading the nrws is not that hard its one of simple way to do with in the forex market

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  • 1 month later...

As for me I still hold my possition that news can be traded best when we listen to the news of a country pair which we wanted to trade and the out come can now become our decission if we should enterlong or short,regarding the economic situation of the country.

Well, news is very important for the running price in forex trading here. With the news here, the price will move up or move down here. We can know and can see about this thing here. Usually I will always check the economic calender listed on the http://forexfactory.com to see the upcoming news

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  • 2 weeks later...

It is true, when we get very high impact news like this here, then we will know, this thing will be able to move the price in the market very high here. This is happened for many times already here if we know about this here. So, in this way here, we can see, the risk from the news impact is the same

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news driven trading is my favorite and this way we can capture some good pips. eurjpy is the best pair I like for news trading because his pair responds extremely volatile to important news events. News trading requires much experience to make profit. However we should not forget that news trading can be extremely risky and also highly rewarding if we know how to apply our skills in news trading.

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Using foreign exchange market news to trade is another way of saying fundamental analysis in trading. Economic news, especially those rated as having high impact could determine the direction of a currency pair trade. Thus the currency pair affected by the news should be considered to maximally utilize the info. Trading using fundamental analysis require skills.

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There are many ways to find the information regarding the latest market news. And also to think that there are many sites online that giving free information and also to have use it as a way for our fundamental analysis. And many traders use it to gain huge profits easily and to also prevent possible huge losses particularly those who are easily reach margin call.

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Good informative thread. Trading news has always been my favorite and it can do wonders to one's capital. One should not forget that trading news is a very risky business and one should have good knowledge and experience to profit from news trading. My strategy is to enter the market about 3 or four hrs before the news with half the lot size and take the remaining half about 15 mins after the news is out. This way we can have good advantage of the news and also a chance to come out if we go wrong.

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  • 8 months later...

Yes, the spike can help you scalp or empty your account. The swing is so erratic in forex news release. I think its ok for news trader or scalper but hard for long term trader as its around news that they will see total spike that they're unsure of what to do. I think they can also sell during a major spike that goes up like 90 pips also. Sometimes news have positive impact or negative impact and all has to be followed in order to make our trading decisions. 

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Firstly we should make sure we are allowed to do news trading as often I have faced issue where I used to trade on news and later my trade was completely missing due to more profits while when it was in losses they use to let me keep it such double standards brokers have.

 

Luckily I found the best broker OctaFX, it was perfect for news trading since they clear it on their terms and conditions that we can trade on news without restrictions and whatever profits we make is fully given to us and on top of that the execution of all trades are within milliseconds while the withdrawal of profits are given instantly right after we request it.

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Good and Informative thread, the way is a bit like mine, but i don't need to wait up to 10 minutes only to enter the market 5-6 minutes are enough to wait for the calming one and see the clear trend of the market. But still make sure our news that we choose is a high impact one.

Yes,  and every trader surely has own way to start trading in forex. That's why trader also must learn and more improve skills in understanding market movement

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I think your posts is really out of the topic. By the way, everyone has their own way to interpret news as for me i just depend on the news that want with the result, so i don't have much speculatio and mostly the trend is the same just like what the result has, if that is good then the currency which affected will rise or vice versa if that is bad.

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  • 2 months later...

There are many ways, but first of all one must have the permission from his broker as without that it’s not possible to do news trading as most have limits like the percentage of profits one makes or even not allowing to do news at all, but I am lucky that I have really solid broker in OctaFX, it not only gives me permission to do news trading, but have a platform where all my trades are operated instantly without delay.

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There are many ways, but first of all one must have the permission from his broker as without that it’s not possible to do news trading as most have limits like the percentage of profits one makes or even not allowing to do news at all, but I am lucky that I have really solid broker in OctaFX, it not only gives me permission to do news trading, but have a platform where all my trades are operated instantly without delay.

What the hell are going on with your broker dude? That kind of broker seems fishy why should they limit you for something which is legal, if at liquidity provider there is no order that match yours, there will be requote or delay but why they should limit yours. Be careful with that kind of broker, in a strict regulated broker you can trade 24/5 without any limitation of what you do as long as you don't hack the price feed or doing something illegal.

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