To trade on the news implies knowledge of economic indicators and how they influence the market . The basic tool for any Forex trader is the economic calendar, which lists the financial data in this regard. Here are some guidelines that may be useful for beginners to start trading on the news .
Although to trade on fundamental analysis is a very interesting thing, it's quite challenging. First of all, we must face the dilemma of managing money: where to put the stop?
The second challenge is that you should be able to "predict" the direction of the market after the distribution of a press release and set a limit of expectation and order, before the press release. In this way you will have opportunity to actually enter the position at the price specified.
If you want to trade on the news, then do trading with stop loss and limit order is an important thing. It 'important to always set the stop loss on your positions, just for the fact that you can be protected from excessive losses.
If you decide to become a trader based on the news, then you should choose brokers on the market with high liquidity, above all, a broker who has no conflict of interest with their clients, because they should never to trade against our customers, which means also the minimum time to process customer orders.
Keep in mind that most of the Forex broker increases the spread in the wake of the irregular market trends. You should always look at the spread, so that to avoid paying too many pips spread as if it wanted to enter the trading following the release of important news.
To trade on the news is not an easy thing, but it certainly brings great benefits, because it is the most important news that there are the larger movements.
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