Forex News Trading
Forex trading can be a very profitable activity. Years ago it was complicated and didn't allow small traders in, leaving this type of financial trading only to specialists. There are many different approaches and techniques in Forex trading. One of the popular trading style is news trading. Forex news consist of various global financial and political news that are appear on the media every day (if not every hour). Forex news trading means buying and selling currencies when such news arrive. Bad U.S. news cause USD to fall, bad European news cause Euro to fall. It's simple and logical - that's why Forex news trading is so popular.
Forex News Trading Points
What to look at if you want to be a Forex news trader.
- Monitor news sources (media, blogs, TV channels) in order to get the information as fast as possible.
- Choose a Forex broker that has fixed spreads, that don't increase during news releases.
- Be ready for the market to move unpredictably - false breakouts and micro-term corrections are possible.
- It is a good idea to set stop-loss and target profit levels when the position is opened. Market can move very fast during news releases.
- Setting limit and stop orders to open positions before the news releases is a good idea if you want to trade on a news while you can be away from the trading platform.
- Mind your stop-loss and take profit levels - news trading is about quick profit or small loss - don't make your positions to last for days.
- Don't forget about slippage. During news releases one tick can move currency pair price by 10-20 pips, so be ready for your position to be less profitable than you could expect it to be.
Forex News Trading on Del.icio.us
Great Books on Forex Trading
Currency Trading For Dummies (For Dummies (Business & Personal Finance))
Amazon Price: $16.49 (as of 08/21/2008)
The Complete Guide to Currency Trading & Investing: How to Earn High Rates of Return Safely and Take Control of Your Investments
Amazon Price: $16.47 (as of 08/21/2008)
Day Trading For Dummies (For Dummies (Business & Personal Finance))
Amazon Price: $16.49 (as of 08/21/2008)
Forex Patterns & Probabilities: Trading Strategies for Trending & Range-Bound Markets (Wiley Trading)
Amazon Price: $46.75 (as of 08/21/2008)
The Forex Trading Course: A Self-Study Guide To Becoming a Successful Currency Trader (Wiley Trading)
Amazon Price: $36.00 (as of 08/21/2008)
Blog Posts about Forex News Trading
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Forex Trading Links
More about Forex trading
- Forex Information
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- Forex on Wikipedia
- Article explaining what Forex market is.
- Forex Scam
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