You have to understand the effect the news may have on the market when the forecasted value of the news report differs from the actual value by little or much. When the Non-Farm Payroll NFP was released on the 8th of January, , for instance, the actual value fell short of the forecasted value by a lot. The economists forecasted an increase of the figures by 60 thousand. Instead, the actual figure was a decrease of thousand.

The NFP is an economic data that represents the employment figures in the USA. As you might imagine, a fall in this figure is bad for the US economy because it means more people are unemployed. This increased level of unemployment could dip the economy in many ways. One of them is that fewer people would pay taxes, and less income goes into the US Federal Reserve. So when the news was released, the USD weakened across many major currency pairs.

If the actual value was close to the forecasted value, the market might have been able to absorb the little gap and move on as if nothing happened. Maybe a brief spike in volatility would be recorded across USD currency pairs. But the large difference meant things were worse than expected, so traders sold the USD. By now you hopefully you get the picture. Establishing the bias requires some work from your part. You need to read the news to absorb the sentiment. For example, the market consensus for the June NFP report was k versus k from the previous reading.

This means that the market sentiment and the build-up ahead of the news release were quite positive. However, the NFP reading below k is still not enough for the Fed who seeks to hike rates, in which case it needs to see stronger evidence of a healthy labor market.

We want to emphasize the importance of relying on technical analysis and price action when trading the Forex news events. Actually, trading the news without the price action is more like gambling because the price can give us lots of information on the news before it even gets released. The easiest way to interpret the price action is through support and resistance and our team at Trading Strategy Guides is proud to show you how to correctly trade support and resistance here: Support and Resistance Zones — Road to Successful Trading.

There is an unspoken truth about trading which is that when the majority of the market participants are positioned on one side of the market usually the market goes in the opposite direction.

In our case, we can note how the majority of traders were positioned long going into the NFP release and they must be wrong. Only trade when you can establish a firm bias and when you have strong evidence to support your trading idea. Here is another strategy called The PPG Forex Trading Strategy. When trading the forex news you need to pay attention first to which currency to trade, secondly is the direction up or down , thirdly you need reasons and evidence to support your bias.

You also need to know what the market expectation for that Forex news event is. Every economic calendar comes with forecasted figures for all Forex news events so this is easily accessible to you. Last but not least, you need to assert the market sentiment by studying price action and using technical analysis tools. Please leave a comment below if you have any questions about Winning News Trading Strategy! Please Share this Trading Strategy Below and keep it for your own personal use!

Thanks Traders! We specialize in teaching traders of all skill levels how to trade stocks, options, forex, cryptocurrencies, commodities, and more. Our mission is to address the lack of good information for market traders and to simplify trading education by giving readers a detailed plan with step-by-step rules to follow. FREE PRACTICE ACCOUNT. OPEN LIVE ACCOUNT. About Our Global Companies. Valutrades Limited - a company incorporated in England with company number View more information here.

Valutrades Seychelles Limited - a company incorporated in the Seychelles with company number Regulated by the FCA Fincancial Conduct Authority. Regulated by the FSA Financial Services Authority. Regulatory Number SD Back to Blog News Trading: The Buzzworthy Forex Trading Strategy Explained. January 29, By Graeme Watkins. What is Forex News Trading? Why is Forex News Trading Popular? Advantages of Forex News Trading As said previously, what forex news trading tends to represent is a high risk, high reward approach to the market.

Conclusion Anyone looking to find an effective forex trading strategy is going to be spoilt for choice these days. Disclaimer: The information provided herein is for general informational and educational purposes only. This post was written by Graeme Watkins CEO Valutrades Limited, Graeme Watkins is an FX and CFD market veteran with more than 10 years experience.

Key roles include management, senior systems and controls, sales, project management and operations. Graeme has help significant roles for both brokerages and technology platforms. Read more articles by Graeme Watkins.

Valutrades Blog Stay up to date with the latest insights in forex trading. Subscribe For Blog Updates. Popular Posts. Topics Competition 4 COVID 1 Cryptocurrency 1 Economic News Events 7 EURUSD 2 Forex Affiliate Programs 1 Forex Indices and Commodities 4 GBPUSD 1 HK50 1 indexes 1 Indicators 4 November Monthly Review 1 NZD 1 NZDUSD 2 Seminar 1 Sentiment Analysis 1 Trading Accounts 3 Trading Strategy 7 Trading Videos 6 UKOil 1 US30 1 USDCAD 1 USDJPY 1 WTI 2 XAUUSD 3.

Read The Previous Post Read The Next Post. Our customers gave 4.

Back to Blog. Everyone is on the hunt for the most effective way to trade forex. Countless methods are touted around, all of which promise investors the most exciting way to grab a piece of the forex market.

One of these methods is news trading, which you may have taken an interest in based on the buzz it has generated as a trading method that can produce results in As with any other tradable assets, forex is often impacted by major news events, especially those that have strong economic implications. Considering how the forex market tends to come alive following major news releases, it subsequently becomes a pivotal time to trade, as the price swings present profit potential. For example, news that suggests a hawkish central bank will boost a currency, while dovish news has the power to send it the other way.

In the grand scheme of forex trading strategies, news trading certainly ranks as the most active, but it also comes with inherent risk. But what drives people to try forex news trading? How has it reached such great popularity? While every trader is looking to make a fast profit, forex news trading has earned plaudits for how close it brings traders to the market. Each day, approximately seven different pieces of economic data reach the market, which means that the opportunity to make movements off the back of news announcements is rife across a hour period.

As said previously, what forex news trading tends to represent is a high risk, high reward approach to the market. The positives of this come about through three key factors. For starters, the profit potential outstrips other strategies.

With seven key pieces of data being released daily, there is plenty at hand that pulls the market one way or another. Ride these daily waves using the right foresight, and the key daily influences can lead you to healthy turnover. News can sway the market positively or negatively in a flash, which means that those who thrive on unpredictability are going to find news trading to be of real interest.

This method also places a heavy focus on reactionary trading. Putting you in the moment, forex news trading allows you to put your reactions and instincts to the test. While you may be willing to embrace the increased level of risk, the heightened trading costs and slippage present a notable hurdle. Slippage is at its most prominent when you try to trade during major news events.

You also need to understand the sheer unpredictability of forex news trading, as hairpin turns are common when news hits the market. The price of a currency can be flying one moment and dropping through the floor the next.

This means that reading the market can be difficult even at supposed times of calm. Before you even contemplate forex news trading , you need to understand the related risks and determine how comfortable you are with them. Among other things, these banks control interest rates, determining whether they will rise or fall. Any interest rate decision is of extreme importance because it can heavily impact everything from mortgages to potential inflation. GDP — GDP stands for Gross Domestic Product, which relates to the measure of production equal to the sum of the gross values added of all resident institutional units engaged in production.

This is along with any taxes, subtracting any subsidies, on products not included in the value of their outputs. When figures related to GDP are announced, expect the forex market to move positively or negatively in a major way.

Inflation Data — Key inflation indicators—such as the Consumer Price Index or CPI for short—should be on the radar for any market watcher, as central banks will use this data to influence rate policies. Job data — Lastly, job data releases also have the power to impact the forex market. Related job data— provided in the US non-farms payroll report is regularly suggested to be the highest impact news event of them all—is definitely worth taking note of.

Anyone looking to find an effective forex trading strategy is going to be spoilt for choice these days. For those that really do enjoy jumping into what makes the market tick on a daily basis, a forex news trading strategy represents the perfect fit.

Proving that no two days are the same within the forex market, when you adopt a forex news trading strategy you are working with daily data. With the ability to truly trade in the moment through an increased degree of risk and volatility, you could easily ride major news releases to make a successful trading strategy.

The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice. If such information is acted upon by you then this should be solely at your discretion and Valutrades will not be held accountable in any way.

Click here to read customer reviews. The information on this site is not intended for residents of the United States of America, Belgium, Iran and the Democratic People's Republic of Korea or by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

Valutrades Limited is a limited liability company registered in England and Wales with its registered office at 51 Eastcheap, London, EC3M 1JP, United Kingdom.

Company Number Valutrades Limited is authorised and regulated by the Financial Conduct Authority. Financial Services Register Number Securities Dealer License No SD sc Learn more about the differences between Valutrades UK and Valutrades Seychelles. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. UK Login. Seychelles Login. FREE PRACTICE ACCOUNT. OPEN LIVE ACCOUNT. About Our Global Companies. Valutrades Limited - a company incorporated in England with company number View more information here.

Valutrades Seychelles Limited - a company incorporated in the Seychelles with company number Regulated by the FCA Fincancial Conduct Authority.

Regulated by the FSA Financial Services Authority. Regulatory Number SD Back to Blog News Trading: The Buzzworthy Forex Trading Strategy Explained. January 29, By Graeme Watkins.

What is Forex News Trading? Why is Forex News Trading Popular? Advantages of Forex News Trading As said previously, what forex news trading tends to represent is a high risk, high reward approach to the market. Conclusion Anyone looking to find an effective forex trading strategy is going to be spoilt for choice these days. Disclaimer: The information provided herein is for general informational and educational purposes only.

This post was written by Graeme Watkins CEO Valutrades Limited, Graeme Watkins is an FX and CFD market veteran with more than 10 years experience. Key roles include management, senior systems and controls, sales, project management and operations.

Graeme has help significant roles for both brokerages and technology platforms. Read more articles by Graeme Watkins. Valutrades Blog Stay up to date with the latest insights in forex trading.

Subscribe For Blog Updates. Popular Posts. Topics Competition 4 COVID 1 Cryptocurrency 1 Economic News Events 7 EURUSD 2 Forex Affiliate Programs 1 Forex Indices and Commodities 4 GBPUSD 1 HK50 1 indexes 1 Indicators 4 November Monthly Review 1 NZD 1 NZDUSD 2 Seminar 1 Sentiment Analysis 1 Trading Accounts 3 Trading Strategy 7 Trading Videos 6 UKOil 1 US30 1 USDCAD 1 USDJPY 1 WTI 2 XAUUSD 3.

Read The Previous Post Read The Next Post. Our customers gave 4. sc Learn more about the differences between Valutrades UK and Valutrades Seychelles © Valutrades.

analysis , forex , forex indicator , forex strategy , forex trading strategy , free forex indicators , free forex strategy , news , NON-Repaint , scalping , strategy , Trading Strategy. FXCracked Just4Forex TradeWithSam. The most important news items for bond traders include interest rates, bond ratings, and bond yields. Thank you! That is why you have to be good at risk management, especially when you are dealing with the sudden spikes in volatility that forex news trading involves. The breakout forex news trading strategy allows you to prepare for a breakout in either direction without worrying about what the news says. Therefore, it may be easier for some to make more reliable forex news trading predictions on how the market will perform.

Categories:

• Binary Options
• Forex
• Forex Brokers
• Forex Bitcoin
• Binary Options online