Three Amazing Tips To Trade The High Impact News

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Trading the news is one of the most challenging tasks for retail traders. Many experienced traders in Hong Kong are making a decent profit just by executing trades during the high impact news. Things might seem extremely hard for the new traders but if you follow the basic guidelines of news trading it won’t take much time to master these skills. Before you start to trade the volatile market you need to find a reliable broker like Saxo who can handle trades at the extreme market condition. Once you have access to a premium trading environment, it’s time for you to develop your news trading skills.

Understand The Major News

You need to have the ability to understand the major news in the Forex market. For instance, PMI data release for the U.S economy is not so important compared to NFP data. Unless you understand the different types of news, you are most likely to lose a huge sum of money. But there is nothing to worry! We will make things easier. Most of the time the market tends to exhibit an extreme level of volatility on the following news. These are:

 

  • NFP data 
  • Unemployment claim
  • Interest rate decision
  • Press conference

 

So, if you see any schedule of the above mentioned news, you can expect to experience an extreme level of market volatility. Prior to the release of the high impact news, find the key support and resistance level of the market. It will help you to find the best trading spot in the Forex.

Use The Price Action Signal

Price action signals are often used by the pro traders to find the exact entry point during news trading. Since the market becomes extremely volatile on such an event, you need to focus on the 1 minute and 5-minute time frame. Look for potential price action confirmation signals in the lower time frame so that you can execute the trade with an extreme level of accuracy. Always remember, you are here to make money. Unless you work hard, the chances are very high you will not be able to understand how to trade this volatile market.

So, it’s very obvious you need to learn price action trading strategy to trade the news. Some of you might think it’s a very complex process but if you use the Saxo demo account, you can easily learn to trade without losing any real money. Leading your dream life based on trading is not all hard. Once you know how to trade the lower time frame prior to the high impact news, you can easily make a big profit by trading the major news. As a new trader, you need to keep yourself updated with the latest market news, or else you will always lose money in the long run.

Managing Your Risk Factors

Trading the news requires extreme knowledge and trade management skills. Unless you know the proper way to protect your trading capital, chances are very high you will fail in this business. No matter how well you analyze the technical and fundamental variables, there is no assurance you will make a profit from a certain trade. You have to consider the worst case scenario to survive in this industry. Being a full-time trader, you should also join the professional trading network so that you can see how the pro traders analyze the market data. Try seeking help from them since they can give you valuable advice regarding the market conditions.

If you can follow these tips in the market, you can easily trade the major news. But as a new trader, we always recommended you to use the demo account to see how things work. Unless you can successfully demo trade the market for a few months, you will never gain confidence. Confidence is often considered as the prime element in the trading business. So work hard to learn more about this market.