sandysrParticipantJanuary 28, 2020 at 9:17 amPost count: 0
News trading is one of the key reasons for which retail traders are losing money. If you look at the naïve trader’s history, you will realize the majority of them are losing money since they don’t know how to deal with the volatile market condition. You need to be skilled at trading to learn more about the major news. News trading is not all difficult as it seems. You need to find the correlation between the major price movement and news data.
There are many ways to trade the major news. In this article, we will give you some amazing tips that can help you trade the major news.
Identity the high impact news
The first thing that you should learn is to identify the major news. Identifying the major news is no so hard. If you want to make some big profit from, you must learn fundamental analysis. At the initial stage, you need to focus on the interest rate change, GDP and major press conference. These are the most powerful news that can even change the trend of the market. Things might be tough for the new investors but if you look at the bigger picture, you can easily find a strong correlation between news and technical data. You don’t have to be aggressive in learning these things. Stick to the basic data and use the demo account to understand how things work.
Learn to use the candlesticks
Learning to use the candlestick is the most efficient way to secure profit. Dealing with the price movement in the Forex trading industry requires a strong knowledge of chart analysis. Without analyzing the major candlestick patterns, it would be really hard to find the potential buying and selling signals. The fulltime traders are always trading the key levels using the candlesticks. If you want to secure a decent profit from this market, make sure you rely on the long term goals. And for that, you must know why the candlesticks are formed differently. Things might be hard at the initial stage. Once you learn to trade with the candlesticks, you can easily trade major news.
Trade with low risk
To trade the major news, you must lower down the risk factors. Trading with high risk is one of the most common reasons to blow up the trading account. Trading is more like finding the best possible signals based on higher time frame data. And when it comes to news trading, you always have to remember the associated risk in trading. Lower down the risk to 1-2% so that you don’t have to lose a big portion of your capital. Learning the technical details of risk management greatly depends on the traders. For instance, those who can trade with tight stops can afford to trade with big lots. On the contrary, those who are trading the market with wide stops should reduce the lot size.
Find the mistakes
You need to find the mistakes at trading to become a better trader. When it comes to news trading, it’s very normal you will lose many trades due to minor faults. Note down the mistakes and try to find the key reason for which you are losing money in Forex. If you want to become good at trading, you need to fix the errors in your strategy. The news traders are always great at finding the mistake. Those who are having trouble to find the faults in their strategy should learn to use a trading journal. By using the trading journal, a trader can easily fix the problems associated with their news trading method. You don’t have to push things to the extreme point to become a successful news trader. Try to follow the tips mentioned in this article. And keep your confidence level high since it can help you to overcome the obstacles.
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