15:59 0 Comments

Why currency trading using news


The answer to this question is simply "to earn more money, but in all seriousness as we learned in the previous section that the news item is very important in the Forex market and its ability to make the market move. When the show news and important news all to see, you can probably expect to see some big price moves. Your goal as a trader is your gain the opportunity to trade in the same direction as the market,

The risks of Forex trading using news

As in all currency trading strategies, there is always a potential risk, so you should be very careful. Here are some of those risks:

Of course the Forex market in strong momentum during the emergence of news events, many of they simply need to make the target of very large spreads during news, and of course this increases risks deliberate and could be detrimental to the amount invested.

The deal could also be attached for a moment which means that your trade will be executed in time but do not appear in the transaction only after several minutes. Of course this is bad for you because you won't be able to do any other settings if the trading was in your favor.

Imagine that idea, and that it was not carried out, will try to enter the market again, and realize that the first command has been implemented! The risk will be doubled in that time.
Can also occur sliding slippage. It is what happens when you want to enter the market at a certain price, but because of the strong momentum in the market during these events, you are actually at a different price and far from what I want.

Large price movements in the market, caused by news events do not move in one direction. It may start to fly towards and then sharp decline occurs in the other direction. Sometimes trying to figure out the correct market orientation is a real problem for rolling in that period.

Currency trading using news profitable? Maybe, but you will need to practice a dozen times before you start trading with real, but all must always have a strategy, in the following lessons will give you some tips on how to trade based on the news.