Immediately Enhance Your News Trading Techniques With A Good Forex Calendar
The foreign exchange market is rapidly growing to be one of the most preferred investment vehicles due to its massive volume and liquidity. While Forex traders depend on the study of historical charts to track the price movements and other types of technical analysis to help figure out entry and exit points, there are a few traders that enter and exit positions using economic news releases. Forex news trading has become the easiest means to get started into Forex trading, because it does not count on any technical indicators. Trading during news announcements is also quite risky but the possible ways to make money is substantial. Absolutely Nothing surpasses the enjoyment of seeing the market spike over 50 pips in the direction of your trade.
Currency News Trading, in a nutshell is really a Forex trading method that takes advantage of market volatility during surprise news events. The foreign exchange market is driven by high impact economic news, and if you have knowledge how to take advantage of these news releases, you will be quite profitable and make consistent money. News trading is simpler than it seems. Generally, a news trader would stay alert for upcoming news that are related to a country’s economy and look to enter a trade based primarily of the news. When the announcement is a surprise, indicating, the actual release number is much better or worse than the predict number, you would immediately look for entry on the direction of the surprise.
As an example, if the US Non- Farm payroll is expected at 100K, and the actual release comes out at 225K, then you can certainly expect the market to spike on the direction of US dollar strength. News traders would right away look to get into trades to buy USDJPY, USDCHF or sell EURUSD, GBPUSD.
In order to be able to keep observe of all of the upcoming news, you need to have access to a good Forex calendar and be able to find the news announcements as soon as they are released. Serious news traders pay for audio or video newswire services in order to get the news release numbers seconds after it’s announced. Many well- known financial sites provide 100 % free economic Forex calendars, updated with the latest economic figures as soon they are announced. However, the release numbers may not be obtainable until five seconds later.
An average Forex calendar will show you the time and date of the news, the forecast and previous numbers, the country of the news, and the level of impact from the news. Some Forex calendars color code the announcements, implying how much impact each announcement is likely to have for the particular country. The economic news that are likely to move the markets are coded red and the ones that are likely to have a lower impact are coded yellow.
Some of the news to always look out for that are guaranteed to have an impact in the Forex market are definitely the US Non- Farm payroll, GDP( Gross Domestic Product ), Interest rates, and also speeches by a country’s central bank chairman.
By monitoring the economic news releases, you are not only searching for entries to take advantage of the news spikes but can also keep an eye on a country’s economic situation and look for longer term trades based on the trend and market sentiment of a certain currency. Even if you're primarily a technical trader, you will need to keep up with economic events in order to avoid losses.
