How to Trade Forex News? from freeamfva's blog
In the Forex market, all strategies based on the reactions of traders to macroeconomic events happening in the world right now are called trading the news. To put it simply, as soon as the news comes out, a trader opens a position, the market reacts and the trader earns a profit.To get more news about IC Markets, you can visit wikifx.com official website.
When you trade Forex news, you need to understand that the key factor in this is not the news itself, but the reaction of other players to it. All players know about the news that is about to come out, analyze it, consider it in their forecasts and set their expectations based on it, thus permanently changing the market. Therefore, an experienced trader makes their forecast not based on the news, but on the expected changes of the quotes of the chosen assets that will follow the news release as a result of actions of other traders.
Technically, the system of trading the news is relevant for any trader, because all rate fluctuations are generally linked to the news. We see more active trading every time economic publications come out (they are released based on a specific schedule). On the other hand, the reaction of the market to economic events is almost always uneven.
So how to trade Forex news？ For example, if the British pound is showing an excellent position, the strategy in this case pushes us to choose a highly volatile pair of GBP/JPY. Why Japanese yen？ Because at the moment the screenshot was made, the Japanese exchange was closed and could not have any impact on the market.
How and what kinds of trading news do we monitor？ Here are the events to monitor first and foremost:
In order to ensure successful trading in the Forex market based on news, you need to monitor several key indicators. These include the interest rate of the central bank, inflation and unemployment, retail sales and growth of industrial output. Also business sentiment, production and consumer surveys and reports are also important.
When you trade Forex news, you need to understand that the key factor in this is not the news itself, but the reaction of other players to it. All players know about the news that is about to come out, analyze it, consider it in their forecasts and set their expectations based on it, thus permanently changing the market. Therefore, an experienced trader makes their forecast not based on the news, but on the expected changes of the quotes of the chosen assets that will follow the news release as a result of actions of other traders.
Technically, the system of trading the news is relevant for any trader, because all rate fluctuations are generally linked to the news. We see more active trading every time economic publications come out (they are released based on a specific schedule). On the other hand, the reaction of the market to economic events is almost always uneven.
So how to trade Forex news？ For example, if the British pound is showing an excellent position, the strategy in this case pushes us to choose a highly volatile pair of GBP/JPY. Why Japanese yen？ Because at the moment the screenshot was made, the Japanese exchange was closed and could not have any impact on the market.
How and what kinds of trading news do we monitor？ Here are the events to monitor first and foremost:
In order to ensure successful trading in the Forex market based on news, you need to monitor several key indicators. These include the interest rate of the central bank, inflation and unemployment, retail sales and growth of industrial output. Also business sentiment, production and consumer surveys and reports are also important.
Post
| By | freeamfva |
| Added | Oct 20 '21 |
Tags
Rate
Archives
- All
- November 2024
- October 2024
- September 2024
- August 2024
- July 2024
- June 2024
- May 2024
- April 2024
- March 2024
- February 2024
- January 2024
- December 2023
- November 2023
- October 2023
- September 2023
- August 2023
- July 2023
- June 2023
- May 2023
- April 2023
- March 2023
- February 2023
- January 2023
- December 2022
- November 2022
- October 2022
- September 2022
- August 2022
- July 2022
- June 2022
- May 2022
- April 2022
- March 2022
- February 2022
- January 2022
- December 2021
- November 2021
- October 2021
- September 2021
- August 2021
- July 2021
- June 2021
- May 2021
The Wall