Mon-Sat: 8.00-10.30,Sun: 8.00-4.00
Tips for Forex Trading Based on News
Home » Uncategorized  »  Tips for Forex Trading Based on News
Tips for Forex Trading Based on News
The answer to the question you asked has to be lengthy because of the numerous factors that are involved when trading on basis of news releases. Consequently, I will post the first part of the answer today, then I will add the next part in a couple of days. The final, third and final piece just in time for the weekends. Keep in mind that the currency market is made up from a complex set of connections between various currencies. Some may not be so obvious to the casual trader, an example of this is currencies that are correlated unintentionally with other currencies, where one may end up taking any profits that could be made or even doubling the risk. I bring this up because an experienced trader must keep this in mind when trying to evaluate the market. The implication is that, in order to conduct an informed decision about the implications of announcements, traders has to be informed about other currency pairs, aside from their currency of interest. Many traders agree that there are 8 currencies that any savvy trader should be aware of. Keep in mind that these aren't the most significant and are the minimum set of currencies when conducting a thorough analysis. These currencies are : Japanese yen along with the US dollar as well as the Swiss franc, Euro The Australian dollar and the New Zealand dollar, the British pound and the Canadian dollar. INTERIOR DESIGN Asian Model Cams cheap sex cams cheap sex cams cam soda The smart trader needs to stay abreast of changes that affect these currencies. It is important to note that in addition to knowing when important information is expected to be published, the gap between the actual outcome and the whisper values or numbers are extremely important when predicting how currencies will react to the actual news. Whisper values are simply estimates or anticipated values, which are simply numbers that all expected to appear. When I write the second installment of this series I will discuss the most important statistics and news to be aware of and when they are likely to occur. In the next part of the series about trading news, which by the way may be a little late, as I was not aware that I'd be watching for the G 20 this week, we will examine the most important times to be listening to the news reports. The times that are listed here refer to Eastern Standard Time. News releases for each country: 1. US 830 to 1000 2. Japan - 1850 to 2330 3. Canada 700-830 4. United Kingdom - 200 to 200 to 5. Italy 345 to 500 6. Germany - 200 to 600 7. France - 245 to 400 8. Switzerland - from 145 to 530 9. New Zealand - 1645 to 2100 10. Australia 1730 to 1930 So those are the times that you need to be looking for news on these countries. Now the next question is which important facts to watch for. When it comes to economic releases are concerned, you need to be keeping an eye on the following: 1. Interest rate decision 2. Unemployment 3. Business sentiment surveys 4. Retail sales 5. Industrial production 6. Consumer price or producer price 7. Manufacturing sector surveys 8. Consumer confidence surveys 9. Trade balance Make sure to keep in mind that if your goal is to be a knowledgeable broker regarding trade news and developments are concerned you must monitor all of these currencies, and all these economic events. It might seem like an overwhelming thing to do however, many brokers offer an economic calendar available on their sites. You can receive notifications about future events that are sent to you, however for news that's not expected is concerned, you have the option of listening or read about then use the above mentioned times. In addition, it will make your trading better because it gives you an understanding of the market. In the next installment we'll examine the impact of news releases on the trading market. In this last installment about news releases in the trading market, we will take a look at the implications every time key economic figures are released. In the beginning, I want to point out that even if you've been trading with news releases for a number of years, it is crucial to be aware that reactions can fluctuate based on numerous variables including the current situation in the economy. This is why it is vital to stay up-to-date with the current news releases since it will give you a glimpse of the pulse of markets that will enable you to have a better idea of which figures are the major concern of the markets. A common question been asked by newbie traders is how long do reactions to news releases last? There have been studies conducted prior to in which attempts were made to establish this and , while it was discovered that market effects were strongest during early in the 48 hour period after an announcement, the they could be seen throughout that fourth day. So safe to say, you will be able to observe these effects during the first 96 hours after an announcement. Another concern is how to go about trading news. The majority of traders trade news and watch out for the consolidation time, which typically precedes major news release. They open positions and trade the breakout as the news release. Keep in mind that this is how most traders do, so be on the lookout for situations where market expectations become self-fulfilling prophecies. In the past one of the main causes that made trading on the news somewhat difficult, was the volatility factor. In the present, this issue is more evident due to an uncertain global economy. So in order to avoid getting burned, make sure that you are protecting your positions with stops. Additionally, it's important to have an appreciation for the rhythm of the market across the countries in which you trade. This attention to detail is what differentiates great traders from regular traders. As with all things in life being extra careful can be the difference between a poor deal and a winning one.

Leave a Reply

Your email address will not be published.