The perfect way to trade the high impact news release in forex

Discussion in 'General Business Discussion and News' started by Sandy Smith, Jun 12, 2017.

  1. Sandy Smith New Member Verified Member

    Sandy Smith
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    Trading the financial instrument is getting very much popular nowadays. Every single day the number of retail traders is increasing at an exponential rate. Though the forex market offers an extreme level of profit potential to the traders it’s very hard to develop yourself as professional traders. Most of the novice traders start their trading career with a great level of energy and within the first three months, they blow their first trading account.

    To be precisely only 5 percent of the traders are making consistent profit in this industry and the remaining 95 percent are either losing or struggling hard. During the event of the high impact news release, the market becomes extremely volatile and the expert traders in the United Kingdom makes a decent profit by utilizing the high volatile conditions of the market. But in real life trading, the high volatile market is one of the most difficult tasks. However, if you have the strong trading knowledge and robust trading strategy then you can also become an expert news trader. In this article, we will discuss the perfect way to trade the high impact news release in the market.

    Fundamental analysis
    Fundamental analysis is the study of the economic performance of a certain country. Most of the novice traders in the financial market tends to avoid the fundamental analysis in the market. But if you look at the professional traders at Saxo then you will notice that every single one of them are very well in fundamental sections. They know very precisely that in order to trade the high impact news release in the market they must learn the art of fundamental analysis. In the eyes of the trained professional fundamental analysis is often considered to be the most powerful way of assessing the trend movement of the market. So if you truly want to utilize the high volatile movement of the market then make sure that you learn the art of fundamental analysis very precisely.

    Know the severity of the news
    Every single day there are many news releases in the market. Before you place any trade in your online trading platform make sure that you know the severity of the news. Most of the time the novice traders start trading the high impact news without knowing the possible outcome of the data release. For instance, if you trade the NFP news release then you can expect a strong trending market but when you trade during the political speech chances are very high that you will face lots of false spikes. Most of the time due to the lack of knowledge the novice traders loses money while trading the news. So before you start trading the live news in the market make sure that you know what exactly the news is going to provide to the market and how data is going to affect the economic performance of a certain country. It’s true that at the initial stage it will be a little bit difficult for you but if you trade with patience then within a few months you can just trade like the expert traders.

    Use risk management factors
    Trading the news release is extremely dangerous and if you don’t know the perfect way to trade the high volatility of the market then chances are very high that you will lose money. When you trade the news make sure that you are trading in favor of the long-term prevailing trend in the market. Never execute any trade with high risk rather you should follow proper risk management factors in every single trade. After you execute any trade during the news don’t take any more trade for that day. If the trade goes wrong then take a break and start a fresh day from tomorrow.

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