In the forex section 8 of this study, you will learn how the transaction is based on new economic.
How trading based on news
basically Forex trading by news (trading News) is a trading technique by way of compare the difference between actual economic news with the forecast value (forecast) from the news it.
in general, if the difference between the actual value and the value forecastnya large enough, then the movement will be more drastic than if the difference is little or compatible with the predictions . But again, there are other factors that you should consider if you want to use the techniques Trade News
Important factors that should be considered for Trading News :
- types of economic news that is considered important by the market and potentially cause a significant price movement (drastic) . The more important that the movement of prices in general also happens becomes
- What is the difference between the actual and forecast (forecast) new . The greater the difference between the actual value of the forecast, plus the price movements that occurred
- Range High Low Daily (Range Daily) shortly before the news was announced . More daily range of the relevant currency prior to the announcement of the news, generally relatively more price movement
- type of currency pair you use, Spread and enlarged Slip . There is a certain pair was a bit "strange", because although there is news that should be large enough for the pair, but it did not have enough large price movements, there is even times when prices barely budged. There are some forex brokers who raise deliberately spreads during major news announcements. As often occurs slippage (price does not match) between the price of your order with which you get.
Technical Trading Forex News
There are two ways that are often used trader forex news based trade (trading News)
- using stop Shop and sell stop order
this technique is done using the Buy Stop and sell Stop order pending before the important news was announced. The advantage is that if the price moves not according to plan, it is still possible to get a profit. The risk can be minimized by entering a stop loss that is suitable to the new tersebut.Kelemahan of this technique is that if there whipsaw, when markets are moving irregularly in 2 different directions quickly (for example: prices rise, fall, and rise again in the relatively short time) - trade directly at the market price when the news was announced .
this technique is done by comparing the difference between the actual and forecast specific news. If the difference is large enough, then the trader opened immediately buy or sell at a price market.Keuntungan of this technique is the ability to make a profit that is greater than 1 in atas.Kelemahannya technique is that if the market moves do not take place properly, then the operator concerned will lose big enough because there is no stop loss to protect its position. To use this technique, the best forex broker you have instant execution and you have a very good source of news. If you are still a beginner, you should not use this technique because it is very risky
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