September 23, 2019 at 7:36 am #7332Walter BergerParticipant
News trading is a very profitable trading system. Those who have mastered the art of news trading can easily make a decent profit from this market within a short time. However, the new traders should never trade the high impact news since the market extremely volatile. Trading the volatile market requires precise knowledge of technical and fundamental data. You might be a new trader in the Forex market but if you dig deep, it won’t take much time to understand why you are losing money in Forex.
Though news trading is only recommended for the professional traders, still you can learn to trade the major news. You might be wondering, you can easily develop the skills of news trading without doing the hard work. But things are not as easy as it seems. Read this article carefully and learn the proper way to trade the major news.
The severity of the news
There is much news which you can analyze but this will not help. You need to understand the severity of the major news or else you can’t take advantage. Being a novice trader, try to trade the major news related to the major currency pairs. Focus on the interest rate change, employment data and GDP at the initial stage. If the news data favors the long term market trend, execute the trade with the trend. But if you notice the fundamental data suggesting an imminent trend change, never execute the trade. Trading the major reversal based on fundamental factors requires extreme knowledge on the market dynamics.
Focus on multiple time frame analysis
You must open the best Forex trading account or else it will be really hard to ensure quality trade execution. Pro Aussie traders prefer broker like Saxo since they get free access to the robust trading platform SaxoTraderPro. Once you have analyzed the news data, focus on the technical data. Never analyze the technical data in the one-time frame since it will not help you to trade such a delicate market. You need to use multiple time frame analysis to find the best potential trade setups. You might have some tough time with multiple time frame trading techniques, but you can easily overcome this problem by using the demo account.
Demo trade the major news
Demo trading account offers an excellent platform to master the art of news trading. You might not feel interested with demo trading but this is the best way to learn news trading strategy. Try to understand how the market reacts to different price data. Once you feel confident with your demo trading performance, you need to switch back to the real trading account and trade the market with confidence. Demo trading accounts are nothing but blessings for the retail traders. So, if you intend to make a profit, make sure you use the demo account with an extreme level of care.
Trade with managed risk
We all know the associated risk factors in the trading profession. But if you trade the major news, chances are very high you will have to deal with the extreme market condition.so, never take high risk in a new trading system. Stick to the 1% rule of money management. If you lose a few trades in a row, take a small break and wait for the next potential trade setups. Learning the details of money management might seem extremely challenging at the initial stage but once you understand its importance, you will never trade the market with high risk.
Trading the major news is an art. Try to keep yourself updated with the latest market news so that you don’t have to lose a big amount of money. Follow the conservative trading technique in news trading. If possible use the reliable price action signal in the lower time frame to execute the trade. And never trade the market without having any stop loss.
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