You are already on the Forex market and cannot get rid of the idea to trade there. Ok, this is the time to choose a Forex strategy.
Unlike the previous publications we will not explain what criteria to use for choosing the professional Forex trading strategy. This article is devoted to a very specific type of Forex trading strategies - the so called forex trading by news.
No matter what Forex news strategy you are going to choose, it is about the quick reaction that Forex market is giving in response to the specific news. Of course, we are talking about the news that is likely to have impact upon the currency of a country or several countries. For example, it is impossible that the news about a pop start to born a baby will shake the market and break the trend in some currency. But at the same moment the news about interest rate change, product shortage (or overproduction) or conflicts can influence the economic life of the country - and, hence, influence its national currency.
But how can I predict the news?
This is a very wise question, and that is why we are coming to the little secrets. Of course, you will not be able to predict the time when certain news come out to the rest of the world - otherwise you are a prophet or make these news happen.
But there is another type of news - the regular news which are coming out at a fixed time and convey important financial and economic statistics. This news has very serious impact upon the market and economy of a country. And if we are talking about the economy of one of the holders of the Forex market major currencies (USD, CHF, GBP, EUR and others), then definitely it will have its impact on the whole Forex market.
This type of news is coming out at a fixed and set time. And this means you can prepare in advance.
So, most of the Forex strategies that are trading by news exploit the news which is coming out at a predictable time, every two weeks or every week or once a month - these are the details.
It does not have any big difference if you have chosen a special forex buy sell signal solution to handle the news trading or automatic trading software that is specifically crafted for the news trading, you are going to trade at the specific periods of time. And, by the way, this is quite convenient in terms of planning your trading day.
But, there is one important tip. You see, usually at the news release (we are talking about fix-timed news) the whole Forex market starts to trade very actively. That is why at this amount of time many Forex brokers can fail to execute the trading order quickly. This is a problem, because with news trading sometimes even seconds mean a lot. So, triple check this with your Forex broker how they can execute your trades during the news release. Otherwise the whole strategy will go junk, just because your orders are executed a little later.
