News trading is extremely profitable. The skilled traders easily make a huge profit by trading the high impact news. Those who are relatively new to the trading profession might not understand the impact of major news in the Forex market. In fact, the new traders blow up their trading account due to news trading. After a major news release, the Forex market becomes extremely volatile and trading becomes extremely hard. Unless you have extensive experience with the real market, you should never try to trade the market. However, there are few techniques which you can follow to make consistent. You can also use this technique to trade major news.
Now we are going to discuss the essential skills which you need to develop to trade the news.
Trading the naked chart
Those who trade the market with indicators can never trade the high impact news. Forex market is extremely volatile in nature and you can’t predict the price movement of a certain asset based on the indicators reading. You need to rely on the raw price data to execute quality trades in this market. Being a new trader, you can learn price action trading strategy since it deals with the different formations of the Japanese candlestick pattern. Once you master this trading technique, you can easily switch to a lower time frame and execute a trade at the key levels based on price action confirmation signal. Make sure you place the trade prior to the news release with proper stop loss. If you lose the trade, never execute another trade to recover the loss. Take the day off to refresh your mind.
Analyzing the economic performance
Finding quality trade setups in your premium trading platform is not enough to make you rich. You have to analyze the economic performance of a certain country to find the best trades. The experienced traders at Saxo blend technical and fundamental data to find the very best trade setups in the market. You might be new to this trading profession but this doesn’t mean you can’t learn the fundamental analysis. It’s not like doing a Ph.D. in economics. Just learn about the major news release and you can easily understand how it impacts the performance of a certain asset. If necessary, use the demo account to learn more about news trading strategy.
Use the demo account
In order to trade news, you must create a stable trading strategy by using the demo account. News trading is more dangerous than scalping. You can’t afford to make any mistakes because if you do so, you are going to pay heavily. Open a demo account with premium broker Saxo and try to trade the high impact news. It’s normal to lose trades at the initial stage but you should never lose your confidence. Learn from your past trading mistakes so that you can fine-tune your trading strategy. Unless you have proper devotion and dedication you will not be able to find the very best trades in this market.
Take a professional course
The best way to learn news trading is by seeking help from trained traders. Try to get a professional course on news trading so that you know about the key parameters of this market. The experienced traders will give you a clear guideline to trade this market with an extreme level of precision. Some of you might think to invest money in a trading education is a big waste but in reality, this would be one of the best investments of your life. Make sure you are not learning to trade the news from novice traders. There are many scams in the online market place. Try to find a professional trader who has a proven a track record in the trading industry. Also consider professional traders advice when selecting the right course for your trading.