The secret to trading Forex news and making more money in just a few minutes than you think

One reason for the rapid growth of foreign exchange trading is because the market is open 24 hours a day. Although the stock and bond markets of a country are mainly influenced by the country's economic news, the foreign exchange market is affected by economic news in many countries.

Since the foreign exchange market is open 24 hours a day, and countries/regions publish their economic data throughout the day, traders who can only trade in the evening or early morning can still take advantage of the major market movements surrounding economic news releases.

The main issue you must consider when trading news is the extreme volatility that occurs. Sometimes, a currency pair can move 50 points in one direction in 2 minutes, then reverse in the next 15 minutes and move 200 points in the opposite direction. As a news trader, you must be capable, capable and capable of coping with this extreme volatility while still making money.

There are some key to making news profitable, you must first learn and practice in the demo account before you can use real money to try.

1. You must determine the currency pair you want to trade.

Since 90% of foreign exchange transactions involve the US dollar, you must pay attention to the US press release. This means you have to trade EUR/USD, USD/GBP, AUD/USD, USD/CAD and other currencies. As a further reminder, you want to focus on the most liquid currency pair [ie, always in and out], which is EUR/USD.

2. You need an effective and repeatable trading strategy

One of the worst ways to trade news is to enter the market before or after the press release. This is when a novice and a greedy trader trade, you want to get money from them instead of trading with them.

In this case, you can use two news trading strategies.

First, use the pending order to cross the market. This means that when the market reaches your desired price, the transaction will open automatically. Then you cancel the other orders. This allows you to enter the market when you want to enter the market, rather than entering the market when the market allows you to enter.

Second, you can wait for the volatility to weaken before trading. Of course, if you are lucky, you may not be able to make much money, enter the transaction before the news release, and the market just happens to be natural. But by waiting, you increase the likelihood of making a profit, which will make you make more money in the long run.