Forex News - How to make them?
trading technique on the news is fairly simple,
even primitive methods of trade. The main plus news Forex in
whether it is possible to take a "quick" profits at low risk. The main disadvantage is that
Forex brokers do not give you easy to trade on the news and will be strongly
attempt to insert "a stick in the wheel." But first things first.
Most news does not affect the movement of the currency
courses. For example, the news that Dmitry Anatolyevich received a gift
new "iPhone" indifferent markets.
Market interest the news that directly or indirectly
impact on the macroeconomic situation in the country (world).
Important Forex trading news are sudden and
planned. "Sudden" news - it is,
as a rule, difficult to predict and few expected events. For example, in
February and March 2013 the euro significantly and continuously reduced in relation to the
dollar. Traders were at a loss - why is this happening? no
serious news background was not ... Just the end of May it became known significant
problems with the Cypriot banks. Knowledgeable people (insiders) to sell the euro before
as the news of the troubled banks will be known to the general public.
!!! Important recommendation !!!
Do not try to sell "sudden" news, ignore them!
Planned news Forex - is another matter entirely.
There is the economic news release schedule. By
certain numbers at certain times out macro data.
For example:
- data on inflation
- Unemployment
- on interest rates
- GDP and industrial growth
The above are the most important news.
Predict what will be news - positive or
negative, we can not.
We also can not predict the market reaction to the news.
For example, it often happens that the "good" data reduction market reacts, and
bad - growth.
!!!An important tip !!!
Never open transactions to important news
Forex.
A trader who sells to did not have anything news
predict, he has to "go with the flow", that is, to follow the price.
By the way, if you do not know yet - how much you can earn on
Forex - see the link!
Let's look at the step by step algorithm of earnings news.
1) Determine the time
critical Forex news release.
You can use the calendar of economic
news:
You can use any other calendar - their great
a bunch of.
Usually indicated CET exit time news.
2) Select the desired
currency pair to trade.
Everything is simple, if the news, for example, linked to the economy
UK, we will sell the British pound against the US dollar (GBP / USD).
If the news related to the economy of Canada, you have to sell to the Canadian dollar
US dollar (USD / CAD), etc.
3) 15 minutes before
of the news we need to put a buy stop order 15 pips above the current
prices. And sell stop order 15 pips below the current price.
4) Stop loss of both
Orders 10-15 points.
Example.
See schedule (five-minute chart of the Euro-dollar, 9
May 2013).
Trading the News - placing orders
Current price (for 15 minutes before the news) about
1.3100. We as a trader trades
news had put the warrant "buy stop" at the level of 1.3115 with stop loss
at 1.3105. And the order «sell stop" at the level of 1.3085 and a stop order at 1.3095.
The essence of these simple actions in the next ...
We need a situation, when the news comes out much better or
much worse than expected.
For example, in the news calendar, appears the news: "These
industrial production of such a country. " The consensus forecast 1%.
Comes the news - it turns out, is not industrial production
It rose and fell by 0.5%.
Due to the fact that the evidence strongly disagreed with
predicted, may be followed by a sharp price movement. That's it, and we
necessary! Price for a couple of minutes (or hours) it can take hundreds of items. For example,
1.3100 to 1.3000 (100 drop points).
Look at the chart.
EXAMPLE news successful trading FX
Price decreased gradually after the news in an hour (1
Candle graph five-minute = 1).
These powerful movements do not occur often. More often
traders who trade the news will lose, and lose on each trade 10-15
points. But one strong price movement is more than cover the small losses and 5-6
will allow us to make (read the article about earnings on Forex).
Unfortunately, not all is rosy and easy. brokers are very
traders do not like the news. Causes of "dislike" will not be considered as
as it is a topic for another article.
Let's take a brief look at the methods of struggle with forex brokers
traders trading on the news:
1) Disconnecting
trading platform
2) Expansion
spread
3) Slippage
The first method is the "ancient" primitive - you (or all
traders, company) "stupid" cut off communication with the server, hence no
opportunities to make transactions. Subsequently will be told stories about
"Technical problems, problems with the provider," etc. etc. brokers never
They do not recognize that the connection was cut off because of the important news.
At the time of the news, often widen the spread. It means,
that short-term deal will be costly for traders
Forex news.
For example, under normal conditions spread fluctuates aisles 2
pips. At the time of the news, the spread may be extended up to 5 points (almost
2.5 times).
Slippage - the discovery of the transaction at a price worse than that,
She pointed out by the trader.
In our example, we put an order to sell ( «sell stop»)
at the price of 1.3085. Due to a sharp price movement, it can be executed at the price of, say, 1.3080. In this case, we have
automatically increasing the size of the stop loss (in Example 5 points) and on the
the 5P. reduced the size of potential profit.
However, Forex trading news - very interesting
and exciting activity (increased adrenaline). I recommend to use this
style as a complement to other methods of trade.
I wish you success and successful trading. Julius I..
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