Forex News Trading
Forex markets are unlike stock markets. Currency markets are open 24/5 except on the weekends. Continuous price action takes place all day in the currency markets. Do you know this that more than 90% of people trading forex are speculators?
Forex markets have the tendency to react violently to the release of economic and socio political news. You cant predict when important sociopolitical event will be breaking news.
But economic news release like NFP figures every month, the housing sales number, FOMC meeting etc all are known before time. Just Google Fundamental News and you will see lots of websites that provide this service.
One these websites, you will find the day and time when a major economic announcement is expected. Non Form Payroll (NFP) figures have recently become very important for USD.
Non Farm Payroll (NFP) figures are released at 8:30 AM EST on the first Friday of every month. Pairs like EUR/USD and others become very jittery just before the release of these figures. EUR/USD can shoot up sometime by 50-150 pips in 5-10 minutes.
Markets mostly stabilize within a few hours after the release of these figures unless these figures are of such a fundamental nature to form a new trend in the market.
Forex news release trading is best for those traders who like a lot of action within few minutes. Here is one strategy described in short that you can use.
Suppose you want to trade EUR/USD. Enter both buy and sell orders at 10 pips above and below the price of EUR/USD just a few minutes before the announcement of NFP figures.
Put stop loss of 10 pips and take profit of 40 pips on both orders. Immediately on the announcement of NFP figures, EUR/USD will react violently and either shoot up or down.
Suppose it goes up by 10 pips, buy order will be triggered. Suppose EUR/USD jumps by 60 pips. Your position will be closed at 50 pips when you have reached take profit of 40 pips. Isnt it nice you made 40 pips in a few minutes?
Suppose EUR/USD shoots down. Your sell order will be triggered and you will still make 40 pips. Sometimes the markets have a tendency to whipsaw so be careful. Practice this strategy on your demo account first ten times before going live. - 23212
Forex markets have the tendency to react violently to the release of economic and socio political news. You cant predict when important sociopolitical event will be breaking news.
But economic news release like NFP figures every month, the housing sales number, FOMC meeting etc all are known before time. Just Google Fundamental News and you will see lots of websites that provide this service.
One these websites, you will find the day and time when a major economic announcement is expected. Non Form Payroll (NFP) figures have recently become very important for USD.
Non Farm Payroll (NFP) figures are released at 8:30 AM EST on the first Friday of every month. Pairs like EUR/USD and others become very jittery just before the release of these figures. EUR/USD can shoot up sometime by 50-150 pips in 5-10 minutes.
Markets mostly stabilize within a few hours after the release of these figures unless these figures are of such a fundamental nature to form a new trend in the market.
Forex news release trading is best for those traders who like a lot of action within few minutes. Here is one strategy described in short that you can use.
Suppose you want to trade EUR/USD. Enter both buy and sell orders at 10 pips above and below the price of EUR/USD just a few minutes before the announcement of NFP figures.
Put stop loss of 10 pips and take profit of 40 pips on both orders. Immediately on the announcement of NFP figures, EUR/USD will react violently and either shoot up or down.
Suppose it goes up by 10 pips, buy order will be triggered. Suppose EUR/USD jumps by 60 pips. Your position will be closed at 50 pips when you have reached take profit of 40 pips. Isnt it nice you made 40 pips in a few minutes?
Suppose EUR/USD shoots down. Your sell order will be triggered and you will still make 40 pips. Sometimes the markets have a tendency to whipsaw so be careful. Practice this strategy on your demo account first ten times before going live. - 23212
About the Author:
Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in day trading; stocks and forex. Download Forex Scalping Cheat Sheets. Discover The Best Forex Signal Service! Read about Trend Forex System.
posted by X - Men @ 2:08 AM
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