Trading Market News and the Different Types
  • Vote Up0Vote Down venynxvenynx
    Posts: 5,288Member
    The impact of news on the market is uneven. Some segments react more strongly and vice versa. Therefore, one of the main principles of successful trading the news is to find the event that will have the greatest impact on the market. The more significant the news is, and the more precisely it hits the right segment, the more volatile the assets will be after publication.To get more news about boursetrade, you can visit wikifx.com official website.
    You can make decisions in advance and even place pending orders to open long or short positions.

    Another vital principle of news-based trading strategies is to buy rumors and sell facts. It is namely challenging for beginners who do not yet have enough experience to understand the mechanism of pricing before the release of forecasts and after the publication of real data.

    The basic principle of trading on the news is to look for an event that can stir up the situation in a particular market. For traders' convenience, the news is sorted and each one is assigned a different rating. The more important the news is, the more volatility it can cause. Therefore, the top of the rating gets the most "explosive" news. However, each trader can conduct his own analysis and decide from which event trading on the news will be most productive in his case.

    Each news affects the market in its own way. But in fact, it does not give a huge advantage to traders who have grasped the intricacies of working with fundamental analysis. Of course, knowing the specifics of a country's economy with an approximate understanding of what will be published tomorrow or the next day's Central Bank refinancing rates or unemployment rate, can give a fairly clear picture of price movements. On the other hand, the "hot" news about a major bankruptcy or the resignation of the responsible person may turn the situation to the exact opposite side. Therefore, successful news trading depends on the ability to track important news in advance to know exactly when it will be published. This approach will allow making decisions in advance by placing pending orders.

    We are sure you know that news in Forex trading can be divided into two groups - expected (scheduled) and unexpected (unscheduled). Of course, you cannot trade successfully, unless you know what is the difference between them and how to trade each of them. Even though it seems to be obvious and logical, let us consider both, so you will be able to adjust your news-based trading strategies if needed.

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