If you have been trading in the Forex for a while you’ll notice that price action fluctuates the most frequently prior to and after the release of economic data from the world’s most important economies like America, European Union, or Japan. The other times that price action fluctuates in a volatile fashion is during moments of political tensions such as the current Egypt Riot, Greece Fiscal Crisis or natural disasters as in the case of Japan’s recent devastating Tsunami and earthquake off coast of the Northeastern Coast of Sendai.
In any case, keeping up to date with current developments and being able to discern their significance to the exchange market is a vital skill every trader must master in order to make informed trade decision. Because news has such an enormous impact on the world of currency, sometimes KANNADANEWS it can cause pairs to move between 60 and 100 pip in just 30 minutes-an hour. Subscribing to a Forex news signal provider can greatly enhance your ability to catch the BIG pips during these huge buy-sell rises.
Forex News Signal Trading: Where to find them?
If you visit major Forex news sites or a well-known Forex brokerages, you’ll usually find a place to join a Forex news signal trader for a monthly fee of anywhere $50 and upward. This is beneficial for traders because it allows you to trade alongside experts from a panel since they also offer similar recommendations to you and they work on behalf of their company.
What is HTML0? to Trade News Anywhere in the World!
To trade the news, you need to go to sites such as Forex factory and any website that displays the weekly, daily and monthly calendar of economic events.
One of the first things to keep in mind is to set the time zone to match the time zone you’re living in , to ensure you’re not a few hours behind or a few hours ahead of the time when announcements are made.
Another thing you must do is to pay attention to the particular countries you are trading with. Most often all things related to America is significant because the majority of the major currencies are pegged on the American dollar, as it is the world’s reserve currency . Therefore, whatever the Americans do will impact all currencies across the board.
Recently there has been a rise in China has been gaining momentum in recent years. Chinese economy, which is now the second largest in the world, surpassing Japan can also be more influential in the currency market particularly in relation to commodity-based exchanges such as those of Australian dollar and the New Zealand dollar (traders like to refer to it as the Kiwi!) Why? because the Chinese are busy purchasing all the world’s resources and commodities to fuel their growing economy.
What is the right time to Trade News? News?
There are two moments when traders should be on their screen when the news about economics is announced. The first is a few minutes before the announcement. Rumour abounds during these times and traders will start to bet on one particular currency, driving up the prices and producing massive rises right up to exactly the time of the news release. After the news get release typically, two things happen.
1) If it isn’t what a traders had hoped for, there will be massive sell-offs and reversal patterns that completely reverses the previous three to four hours of the trend. Reversal patterns usually last an hour and the currency is back the point it was in the past 3-4 hours before the news broke.
2.) 2) If your “actual” forecast is in line with forecasts that are in line with the “predicted” forecast, you generally won’t notice as any movement as you did before, instead, you’ll see an increase or decrease in the trend on the chart. Sometimes , you must be extra cautious since there’s something known as a”fake selling off.” What happens is that big banks and hedge funds will try to trick theindividual traders by making a fake reverse pattern only to experience an abrupt rebound a few minutes later when the real direction of trade becomes apparent.
Yes, welcome to the real world. There’s a dark side out there , and that’s why sharks with big teeth always devour the smaller fishes.
How do you safeguard yourself from sharks with big teeth?
By subscribing to a reliable Forex news signal providers You can observe exactly how professionals trade the Forex as they are well-versed in the small tricks that big sharks try to pull and you will follow the tails of the big sharks instead of getting directly into the huge sharks’ mouth! !