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How to Trade Forex with High Impact News

Fundamental Forex Traders always look for high impact news to enter their trades in forex. This is because trading with the news gives a spike or sudden movement on currency pair for more than 30pips in just a matter of minutes after the news release. 

The strategy 

This can be as simple as waiting for the result of the release, and when the news is bullish we can target for 30pips and put the trailing stop to adjust the stoploss automatically, and when it is bearish we can sell the pair for 30pips target. Stoploss is important on news trading especially when our trade was not in the direction of major trend because most of the time, after the high impact news was released, the original direction of the market continue.

Some of High Impact News are the following
  1. Interest rate decision
  2. Non Farm Payrolls
  3. Retail Sales
  4. Inflation
  5. Employment and Unemployment rate
  6. Industrial Production
  7. Business sentiment surveys
  8. Consumer confidence surveys
  9. Trade Balance
  10. Manufacturing sector surveys
To trade with the news, we should be always updated on the schedule of market news releases for different currency pairs. 


These are the major currencies

  1. U.S. dollar (USD) 
  2. Euro (EUR) 
  3. British pound (GBP) 
  4. Japanese yen (JPY) 
  5. Swiss franc (CHF) 
  6. Canadian dollar (CAD) 
  7. Australian dollar (AUD) 
  8. New Zealand dollar (NZD)

Things to consider during news trading

When we are trading with the news, we should select a broker that has fixed spreads and Instant execution to save from high cost for spread and to avoid slippage. News Trading are not good on forex brokers who does not have fixed spread and instant execution.

High impact news sometimes last from few hours up to 3 days. To catch the news we should always look at the forecast and schedule of news releases. Remember not to waste time on analyzing low impact news to avoid confusions, Be patient and wait for the high impact news if you are a news trader.
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Comments

  1. ayman khlifatJuly 21, 2013 at 11:17 AM

    Thank you , very nice

    ReplyDelete
  2. UnknownSeptember 3, 2013 at 10:27 PM

    One of the great advantages of forex trading is that the forex market is open 24 hours a day. So for those who choose forex news trading, there are plenty of opportunities. By reading this blog you will learn which are the best strategy, major currencies and how traders can act on this market-moving data.

    ReplyDelete

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