Forex Market: News Trading, Part One
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by: Forextraderpro
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The methodology for predicting and trading these trends is simple and
straightforward: monitor the economic calendar and trade the news.
Complicated Forex Trading Formulas and Technical Indicators
Tired of complicated, proprietary
Forex trading formulas and the endless barrage of technical indicators no
one seems to understand? You are certainly not alone. The Foreign Exchange
Market, in its most basic form, is really quite simple. It doesn’t consist of
magic wands, potions, or secret handshakes. You do not have to be an economist,
political analyst, or mathematician to grasp it. There is no Holy Grail of Forex trading. There is, however, a
better way. Thankfully, it is also the most basic, elemental form of trading on
the Foreign Exchange. If a country’s economy is in a growth trend, the obvious
conclusion is that its currency will grow in strength versus a country whose
economy is holding steady or in decline. The methodology for predicting and
trading these trends is simple and straightforward: monitor the economic
calendar and trade the news.
Is Trading the News Risky Business?
While some will consider this too risky, the facts just do not support their
fears. Certain news releases consistently produce 30 to 50 pip moves in a
predictable direction. Knowing and following a solid strategy is essential to
successful news trading in the
Forex Market.
News Releases consistently move the market upon their release.
We are talking about news releases that come directly from government
agencies and other research departments devoted to studying and monitoring
economic trends. It is critical to know the various news releases and how they
typically move the market. Not all releases are created equally. Some are very
consistent and predictable. These A-list news releases provide rewarding trade
opportunities, provided,
- you know the expected number;
- you know how much deviation
is required to move the market enough to gain a profit; - you know how the market will
react if a number comes out higher or lower than expected.
As simple as one, two, three… Knowing the three key factors listed above is
not as difficult or mysterious as it may seem. Number one is taken care of in
the related news releases. Number two can be ascertained, either through
personal trial and error, or by learning from a verified market expert like
whose extensive research and work in trading the news has made him a recognized
authority. Number three is much less difficult a hurdle than it appears. When
the numbers do not meet expectation, when they are higher or lower, they will
affect each release in a particular way. In Part Two, we will share the A List
and B List news releases, talk about their required deviations, and explain how
variances in the numbers affect each.
About the Author
Dustin Pass: Please Visit www.forextradersdaily.com For Further information.
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