I have written a lot about
importance of Forex news in day trading. These events give us day traders a lot
of opportunities to make a lot of pips quite fast. Of course, news trading is
pretty risky and requires a lot of patience, practice, experience, very strict
money management rules and ability to make decisions fast when things go not as
we have planned. In the article I want to single out those Forex news releases
that are my favorite.
First of all, I want to say
what criteria I have for news releases to trade them. If you look at the
schedule of those events and then look at market reactions to them, both before
the release and after the release you will quickly notice that some events have
very low importance, some have medium importance and yet others have very high
importance. The latter are in my area of interest.
Big movements in securities
are necessary for money to be made on these news releases. These are not often,
but when they happen you are rewarded for your patience and discipline.
If you want to see and experience what real investing in financial markets such as Forex, stocks and commodities is all about I recommend trying innovative social investment platform of Etoro. Initial deposits are as low as a few hundred bucks. The best dealer I have heard of so far!
http://www.etoro.com/A41516_TClick.aspx
If you want to see and experience what real investing in financial markets such as Forex, stocks and commodities is all about I recommend trying innovative social investment platform of Etoro. Initial deposits are as low as a few hundred bucks. The best dealer I have heard of so far!
http://www.etoro.com/A41516_TClick.aspx
So, which news are top? The
answer may differ a bit, but for me they are as follows:
1. Non Farm payrolls. The
release has been quite a sensitive area for most traders as the state of US
jobs are one of the main ways to see the state of the economy of the strongest
country in the world. This event causes a lot of volatility in all markets, not
only Foreign Exchange. I still remember times when the news would cause
currency pairs move hundreds of pips in a matter of a second. This has changed,
but from time to time history repeats itself. Be aware of that!
2. Interest rate decisions
from central banks. These may not always have immediate reactions, but
reactions will be in a matter of a few days. There might be a few decisions the
same week or even day, so it is better to wait till all of them are announced
and only then place trades. Markets often become less active before the
announcements and volatility increases in the first hours after the release or
in the next two days. When this news is announced around important support or
resistance levels you might catch a nice reversal and make a swing trade that
might allow you to get 1000 pips or even more.
3. GDP from around the world
also is an event that will have strong impact on the markets medium term.
Again, the reaction may not me immediate, but as the market digests the data
that is releases it will eventually move one direction or another. You will
simply have to go with the flow.
I hope you will take time to
watch what happens when these news events happen and learn from the experience.
Hope the post was useful and interesting too.
For more on the topic of
Forex news read:
Disclaimer
Trading
financial markets carries a high level of risk, and may not be suitable for all
investors. All information on the blog http://trend0.blogspot.com/ is of educational
nature and cannot be considered as advice, recommendation or signals to trade
in any financial markets.