If you have been trading the Forex for sometime now, you will realize that price action fluctuates the most usually before and after an economic data release from the world’s major economy such as America, European Union, or Japan. Other times when price action swings in a volatile fashion is during times of political unrest such as the recent Egypt Riot, Greece Fiscal Crisis, or natural disasters as in the case of Japan’s recent massive Tsunami and earthquake off the Northeastern Coast of Sendai.
Whatever the case, staying up to date with current events and being able to interpret them as it relates to the currency market is an important skill that every trader has to develop in order to make sound trading decisions. Because news has such a huge impact to the currency market, sometimes causing pairs to move 60-100 pips in matters of 30 minutes-an hour. Subscribing to a Forex news signal provider can greatly enhance your ability to catch the BIG pips during these massive buy/sell rallies.
Forex News Signal Trading: Where to find them?
If you go to major Forex news services or large popular Forex brokerage, you can usually find a place to subscribe for a Forex news signal trading services for a monthly fee of anywhere $50 and upward. This is beneficial for you as a trader because this allows you to trade along side with a panel of expert analyst as they themselves trade the same recommendation as you and they are working for their company.
How to Trade News Anywhere in the World!
To trade the news, you should go to sites such as Forex factory or any other site that shows the daily, weekly, and monthly economic calender.
The first things you should note for is configuring the time zone to match the time zone you are living in to make sure you are not a few hours behind or few hours ahead when the news get release.
Second thing you should do is pay close attention to the particular countries you are trading your currencies with. In most cases, anything related to America is important because most of the major currencies are pegged to the American dollar as they are the world’s reserve currency therefore whatever the Americans do will have an effect on most currencies on the board.
In recent times, the Chinese economy, now the second largest in the world, surpassing Japan is also becoming very influential in the currency market particularly to commodity resource-based pair such as the Australian dollar or the New Zealand dollar (traders like to call it the kiwi!) Why? because the Chinese are busy buying up the entire world’s resource/commodity in order to fuel their ever growing economy.
When to Trade the News?
There are two key times that trader should be on their screen when an economic news is release. The first is a few hours usually 3-4 hours before the news. Rumour abounds during these times and trader will begin to take sides on a particular currency driving up the prices and creating massive build-up right to the very hour when the news release. After the news get release, two things usually happen.
1) If the news is not what trader has expected, there will be massive sell-off and reversal pattern which completely counters the previous 3-4 hours build up of that trend. These reversal pattern usually last an hour and the currency is back to where it had left off in the previous 3-4 hours before the news started.
2) If the “actual” forecast is in according to the “predicted” forecast, you will usually not see much action as before but rather you will see a consolidation or leveling of the trend on the chart. Sometimes you have to be extremely careful because there is what’s call a”fake sell off.” Basically what happen is the big banks and hedge funds will try to trick theindividual traders by producing a fake reversal pattern only to see a sudden rebound minutes later as the actual trade direction reveals itself.
Yes, welcome to the real world. It’s a dark world out there and this is why the big shark will always swallow up the small fishes.
How you can protect yourself against the big sharks?
By subscribing to a reliable Forex news signal providers, you can follow exactly how professional traders trade the Forex as they are already very familiar with the little tricks that the big sharks try to pull and you will be following the tails of the big sharks instead of going directly into the big sharks’ mouth!!
Nick is a 22 year old Chinese Canadian trader from Hong Kong and he has made a list of the most reliable Forex news trading signal indicators online today that people can use to enhance their trading decisions and profitability.
Grab your FREE recommendation list of Forex Trading Signal Indicators [http://myforexonlinetraining.com/forex-trading-signals] and jump start your FOREX career today!!
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