Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Forex news trading

796 views

Published on

http://www.henryliuforex.com
If you are looking for information on economic news and currency market forex, look no further, because you’ve found it! You’ll not only find money making trade plans and analysis on upcoming economic news, but also videos from actual trades taken live during these news releases based on the same trade plans, all for free!

Published in: Economy & Finance, Business
  • Be the first to comment

  • Be the first to like this

Forex news trading

  1. 1. Forex News Trading: How trading the news can be Profitable The volatility of the Forex market is a double- edged sword that can make anyone richer by thousands of dollars or end up in bankruptcy. As such, Forex trading has been considered by some as a gamble. For many traders who want to get the most out of the instability of the market, they take advantage of a trading practice called Forex news trading. This is a risky business that offers potential gains but at the same time, losses. The idea behind Forex news trading is rather simple. Trading is done right before or after crucial economic news. After news is flashed on headlines, there is a great possibility that the market rates will fluctuate, either positively or negatively, depending on the news release numbers. For instance, an announcement about an increase in the interest rates of the US Federal Reserve will cause inflation in the country’s currency, thus traders will invest on the US dollar. Forex News Trading: How trading the news can be Profitable (Courtesy of HenryLiuForex.com)
  2. 2. Forex News Trading: How trading the news can be Profitable Traders consider this news crucial, as the fluctuation can bring in profit. Its important to note that some news releases are more important than others, so not every announcement should be given equal importance. For example an interest rate decision will have a dramatic effect on the markets whereas trade balance or current account data, for example, will hardly move the currency markets at all. The high impact news releases are definitely worth paying attention to, even if you are a purely technical trader. These announcements can create wild swings and sudden changes in volatility, and can often render technical analysis completely useless during these times. The best thing to do is to either trade the news releases, or wait a few minutes for the market to settle before re- entering any positions. This is why many technical traders simply avoid trading during the new releases. Forex News Trading: How trading the news can be Profitable (Courtesy of HenryLiuForex.com)
  3. 3. Forex News Trading: How trading the news can be Profitable For example, if an announcement is extremely positive for a particular currency, lets say the US dollar, and then you may decide to immediately go short on the GBP/USD or go long on the USD/JPY. Alternatively you could wait a few minutes, and see what your technical indicators say before entering a position. For some Forex traders, price indices and technical indicators are often used to back up their decisions and trades when entering during new announcements. This requires much research, computations, and analyses before a trade is made. Often, these analyses give a clearer picture of the market’s trend. Forex News Trading: How trading the news can be Profitable (Courtesy of HenryLiuForex.com)
  4. 4. Forex News Trading: How trading the news can be Profitable Often times, high impact news releases can often lead to large breakouts so this is something worth looking out for. You will often find the price consolidates around a certain level in the hours leading up to a big announcement, so if a breakout occurs in the hours immediately after an announcement, it could be a good opportunity to get back in to go in the direction of the breakout. Sometimes a breakout will last a few minutes, other times it will last hours or even days. Its sometimes hard to tell how far a particular currency will break out, but technical analysis can often be a useful guide as to how far it can go. Forex news trading is certainly not easy, and is definitely not for everyone, but if you only have an hour or two every day in which you can trade the markets, then trading the news could be your most profitable option. Forex News Trading: How trading the news can be Profitable (Courtesy of HenryLiuForex.com)

×