Skip to main content

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.
Labels:

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

Post a Comment

Popular posts from this blog

How to Trade Forex with $1 (One US Dollar) Account

Forex Trading Strategy for $1 Today, Forex brokers are allowing the forex traders to deposit and open a real trading account for only One US Dollar. Sounds real crazy but it is really possible to trade forex with $1 (One US dollar) account, not only technically but it is also psychologically possible. The only requirement to trade $1 is Patience. Since the amount was very low, we cannot expect for high profit.  Forex Trading Strategy Plan for $1 US Dollar Account Open a real cents account - This will turn your $1 to $100 dollar equivalent value Trade 0.1 lot size one at a time - Do not open another position as long as the previous was not yet close. Opening 1 position at a time will allow for 1000pips movement.  Target realistic goal - Take profit can be set at 10pips a day, but if you enter a trade on an extremely over sold or over bought area, you can target for 50 to 100 pips a day. Plan the use of stoploss - If you ope...
3 comments
Read more

How to trade forex using Hedging Strategy

Forex Hedging Strategy Before I knew that it was hedging, I was already using it. I use it to protect my account from further loss, but aside from protecting your account from additional loss, you can maximize your profits by using hedging strategy. What is Hedging? It is opening a buy and sell position at the same time with same lot volume. Sounds fantastic and great trading idea because wherever the market goes, up or down, you have a trading position that will be on profit, and when the position goes on the opposite you will profit again to the other position. But to many who uses hedging position at the first time, This result them to too much floating loss position, and when get out of control, they face margin call. When to use Hedging Strategy? Most of the traders doesn't know when to use the hedging properly, though they have a good idea because the currency pair are moving in harmonic waves and the price keep on coming back to a certain price, they would rea...
2 comments
Read more

Top 3 Best Things To Do Everyday Before Trading Forex

Trading in forex is not gambling, Before we enter a trade we must have a reason why we enter buy or sell for our trade. Don't trade without a reason if you don't want to think of a reason why the market always goes against you. Here is the list for the most important things that we should check daily before deciding to trade forex. Daily Chart - Looking on a daily chart will give us a hint what was happening on the currency pair we choose. Check if the pair was near support and resistance so we can trade accordingly, Buy at support and sell on resistance. Check also on the daily chart if there is a big chance of breakout or reversal of current trend so we will not be trapped and we will avoid big sudden loss.  Economic News Release - Everyday for 24 hours a day, News only vary on its impact from low, medium to high. Being updated to the news release schedule, we can avoid or take the chance to ride the waves and volatility of market. It is very important to know what kin...
1 comment
Read more