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FOREX TRAINING

How to Trade the News Effectively

FOREX TRAINING How to trade the news effectively

There are many tools available to retail traders that are pitched as ‘vital instruments’ in creating trading success. But the truth is, many of these tools should be disregarded and classed as unessential. In my experience, there is really only one tool a trader needs to master: the news.

The most successful traders navigate the world’s economic and political events with ease. They are the ones who are able to judge the reaction of the markets and adjust their trades accordingly. It’s this big picture thinking and honed fundamental analysis which brings success.

This approach forms the basis of my own trading and its one I’m teaching thousands of members how to perfect through my educational course. But essentially, there are three components to bear in mind when trading the news.

Forward planning is essential

As the largest and most liquid market in the world, we all know that the forex market has the potential to create long-term profits.

But I promise you that this won’t happen without excellent forward planning. Political and economic events from across the world are what cause the prices of currencies to fluctuate. If you have a good grasp of global news, becoming competent in forex is certainly a wise decision.

The first thing traders must do is get their professional calendars in order. There are at least two or three pieces of important economic news each week which affect the sentiment of markets. These are usually data announcements about recent economic performance, interest rates or unemployment from the major nations.

There are plenty of resources over on the web that list up and coming news events. My favourite online calendar is over on Forex Factory. Every week it publishes a detailed list of every data announcement from across the globe, along with the date and time of release.

At the start of each week, I make a note of the most important events which are likely to impact on what trades I place. Traders who want to trade at an institutional level should do the same.

At the start of each week, I make a note of the most important events which are likely to impact on what trades I place. Traders who want to trade at an institutional level should do the same.

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