Foreign Exchange News Trading System
Are you interested by trading forex news? Do you need to know if the system you are likely to use is includes mandatory aspects or not or is it very risky? Then you have to read this article.
Forex System based on trading news must be selected very carefully. Primary reason being that trading during any fundamental announcement or news is one of the most explosive time during a trading session. The marketplace can move 100s of pips in matter of seconds. Thats why the danger involved are more than trading using technical analysis.
Still, because of profit potential, trading during forex news announcement is one of the most tempting proposition for forex traders. If you are selecting any forex news based system, please make sure that it covers below mentioned 3 risks:
1. What's the strategy to guard forex account when market moves against your trade direction - The fantastic thing about forex news is that it can't be predicted which direction it will move. Naturally, it is most necessary that a strong strategy need to be set to guard the account incase market moves in the opposite of anticipated direction. If such strategy is not in place, your complete account is under big risk.
2. How much would be the profit target - The way forex market reacts to fundamental news is according to an element of "Expectation". For instance, lets imagine that the trader community believes that as per next Non Farm Payrolls the unemployment might be 8% as against 6% during last months announcement. But when NFP comes out and unemployment is said to be at 7.9%, market will treat this as positive for US economy and Dollar will become stronger and market will move in USD direction. How much it'll move is going to be based on much better the results are from expectations. The forex news trading system should definitely cover what should be a realistic profit target based on the news results.
3. Is your forex broker cooperative - No forex news system works if the broker cannot permit you to trade using live prices during fundamental announcements. During some volatile announcements, the currency pair prices are delayed by the some of the forex brokers. Thats because they discourage trading news. If thats true, then either you drop idea trading forex news or it's essential to choose a new broker.
Forex news trading can indeed be profitable. The keys are preparing thoroughly and acting swiftly. Once you have mastered these, Forex news trading could be a beneficial addition to an investor's trading strategies.FX Race To $100k is a breakthrough product, which allows you to trade forex based on news releases using an automatic and hands-free software.
About the Author
FX Race To $100k is a breakthrough product, which allows you to trade forex based on news releases using an automatic and hands-free software.Read more in my FX Race To $100k Review article.
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