Forex News – Trading News Stories For Bigger Profit
Author: Kelly Price
The Forex news you can get today, is delivered quicker and is more comprehensive than ever before and people want to trade these stories for profit but they make key errors when doing so and lose. Here we will look at how to trade Forex news the right way and win.
The first key point to keep in mind is that the news itself is NOT important, its the traders view of it which is. While we all have the same facts to look at, we all draw different conclusions from what we read and your opinion, mine and everyone else’s combined makes the price.
When trading the news what you have to keep in mind is:
It’s simply opinions and these opinions, normally reflect the view of the majority and always remember, the majority losses money! A quick look at history, tells us markets collapse when the news is most bullish and rally when its most bearish and this simple fact, will tell you the RIGHT way to trade news stories and it’s this:
Focus on the traders reaction to the news only!
For example, if a bullish Forex news story fails to push prices higher or a bearish news story fails to push prices lower, this is warning you of a potential trend change.
Traders always push prices to far up on bullish news and to far down on bearish news; this is because greed and fear, drive prices to far up or down and then prices come back down to more realistic values.
Looking at how traders push prices in relation to news, is a far better way of trading than trying to trade the news story itself. Will Rodgers once said ” I only believe what I read in the papers” and while he was joking, most traders take the word of a CNN or CNBC or other news wire expert and follow them and lose.
If you want to win using Forex news, simply check the story and see how it moves the price and if you do this and watch for bullish news which fails to move prices higher or bearish news which fails to push prices lower, then check your charts for a potential trend change you can make a lot of money.
Article Source: http://www.articlesbase.com/currency-trading-articles/forex-news-trading-news-stories-for-bigger-profit-1168072.html
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November 30, -0001
12:00 am #comment-1
No, I don’t trade news stories, nor do I trade with a leverage of more than 1:50
The reason is simple: Broker spreads increase dramatically when a news report comes out. So the chances of manipulation & ‘price spikes’ are much higher.
Besides, the market itself goes into a volatile whipsaw at news time. Your stops can be taken out, trends takes a U-turn, and more often than not, you’ll end up with unwanted losses.
http://forex.ellsed.com
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November 30, -0001
12:00 am #comment-2
Advantages of the Forex Market
By: Heather Redmond
This web page should help you… Plus, you can explore the companies listed on that site.
Good Luck!
November 30, -0001
12:00 am #comment-3
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November 30, -0001
12:00 am #comment-4
Here is a link to the global economic releases this week: http://www.gftforex.com/resources/calendar/calendar.asp
The reaction to these releases is in seconds and the first indication you’ll have that they’re out is that the prices has moved 10, 20, 30 pips or more. You can subscribe to a newsfeed from Reuters or Bloomberg (for about $1200 per year) and get them as they come out but you still need to be quick on the mouse click.
If you try to trade on the news that comes across on free services such as google news, Bloomberg, etc., you’ll go broke.
You need to be in close enough touch with the market as a whole to understand the economic trends and cyclic trends that are going on, trade on those at the right time using technical analysis and if you’re going to be in a trade when the news comes out, it’s best to try to hedge one currency pair against another. For example, in about 2.5 hours, the Reserve Bank of Australia (RBA) Commodity Index is due to be released. You can try to guess whether it is good or bad and place your trade in advance or you can hedge it with another currency so you’re covered whether it is a good or bad report. The latter is safer but things can still go wrong.
November 30, -0001
12:00 am #comment-5
For up to date results and upcoming events in the forex market take a look at the calendar at http://www.forexlane.com. They have up to the minute news and commentary on expected news releases. The outlook will give you a detailed view of all the upcoming economic releases and how they are expected to affect the forex market.
August 11, 2006
7:18 am #comment-6
Can anyone please help me with economic forex news announcements? ( real time ) trading news.?
I need real time ( live ) economic forex trading news
February 28, 2007
5:15 pm #comment-7
FOREX: is trading forex on news releases a viable way to trade forex and what would anyone service would you r
which service would you reccommend , is there any good free site that publishes news releases
April 21, 2007
12:50 pm #comment-8
anyone know of a good forex broker for news trading?
I’ve been trading the news for about 6 months now. FXDD have stopped filling me on all 3 accounts after making huge profits. I am using one good broker at the moment but not sure if they will fill me for much longer. I am in need of a broker who fill you at news times and doesn’t up the spreads to silly amounts. Any ideas?
July 10, 2009
5:01 pm #comment-9
Where can I get reliable news as fundamental analysis for Forex trading?
August 30, 2009
1:09 am #comment-10
Forex News Trading – Are you an Active News Trader who Tracks the Fundamental Release?
Do you recommend this strategy in the Asia-Pacific forex markets — Singapore, HK, Japan, Australia & NZ?