Simple Trading With The Help Of News
The market Forex, like many other trade instruments, reacts to arriving news. Considering that almost every day for the publication the set of news is planned, it is necessary to consider, how we can trade on these market reactions.
What for to trade on news
To gain money in financial market, it is necessary, that that market tool, which we trade, moved either upwards or downwards. As the markets conduct time most part in lateral motion, any prevention of approaching movement for us is good – we can be prepared for trade on this movement, instead of wait all the daylong in hope that something can happen. Regular exits of the economic data give us the magnificent prevention of approaching potential movement because they are in advance planned for concrete time during the day, and many leave them regularly – weekly or monthly. Those events which occur regularly can be used for development of a trading method.
What news good for trade?
There is a set of news, but it is clear that the type of news on which we are going to trade, will depend on currency pair observed by us. If we trade on currency pair with US dollar participation the American economic news, like the data under Payroll records in not agricultural sectors or to weekly requirements on unemployment, will be what to us should be traced. The more you observe of the markets during an exit of news, the better you will understand, which of regular news “move” the market.
Simple trade on news.
However, for the given technics there is one restriction – if an initial 15-minute bar during a news exit moves very quickly and strongly in one direction (we will tell, more than 100 points) to enter into the market it is not necessary, as, it is quite probable that the market already has made almost all movements and the further promotion is improbable.
It is simple enough trading installation which, nevertheless, works rather effectively. That in the best way it to use, it is desirable, that the trader observed some currency pairs as it will allow to raise chances to grasp really good movement.
In case you decided to participate in forex trading should start from learning the basics of currency exchange market to make sure you do not experience problems with this industry.