How To Earn Money Using Trading On News?
This article will be useful for novices of Forex market, which just begin their way in trading, and for venerable speculators who want to improve their skill level. The material presented below is no idle fiction of the author, but the real Forex trading strategy, which let get good and steady revenue. Trading on the news may be one of the most successful strategies for working in the foreign exchange market, allowing saving a lot the time spent at the monitor screen and nerves.
Look at the beginning the premises of this Forex trading system. A huge number of factors impact the exchange rates, one of which is the economic situation of the state, in circulation of which there is a currency. I.e. this is fundamental indicators (unemployment, inflation, GDP, etc.), which determine the level of economic development. Statistical information reflecting the core of fundamental indexes is announced at regular intervals and move significantly Forex market in one direction or another. Moreover, we know beforehand the time when statistical data is released. A trading strategy on the news allows you to exploit the output of the data.
Let’s define, at first, what data has a significant influence on the market, and what does not. It’s not hard. In world trade practice it has formed a list of statistical parameters that have a significant influence on the dynamics of exchange rates. Try to list the major ones. Firstly, this is decisions of central banks about interest rate. Secondly, this is the rate of inflation. Third, GDP and industry. Fourth, the parameter of business activity. Alone we can put the jobs outside of agriculture in the U.S. that surprisingly move the market. And finally, it should be noted speeches of various financial officials of some country.
For clarity of this Forex trading system we proceed to the practical part of our survey. Dry theory does not [spin]contribute to the success in trade. Suggest we are waiting for release of data on U.S. 16 30. So, I distinguish the following stages of trade.
The first stage – is the time span of up to 16:30 o’clock. It can be very time-consuming and depends on a lot of factors: firstly, on the importance of news in the specified time, and secondly, on analysts’ predictions about the statistics announced in 16:30, and thirdly, on the expectations of speculators, etc. If everyone is expecting for bad data, the dollar will be under some pressure and will be lowered for a certain period of time. It is advisable to open against the dollar beforehand and make money on the expectation of bad news. We are waiting for good data – we buy U.S. Dollars.
The second stage – 20 minutes – 30 before release of the data. I advise to begin with approximately 16:00 in our case. This is a period of closing of previously opened positions and different orders. If you have weak nerves and in moments of stress it is difficult for you to cope with them, I strongly advise you to close your position, relax and enjoy the rabid movement.
Today people are looking for additional or even primary sources of income as never. World economy is still in tough condition, and to find a well-paid job is not that easy task. And forex is one of the ways to make some money. To trade successfully one has to be aware of events on the market, so live forex news is of great help here. Those who don’t know where to get fx news can use the Internet. Just type “forex news trading“, for example, in Google or other search engine and you will get many news sources to choose from.