Category: 2. Trading the News

When trading the news, you can either have a directional bias or a non-directional bias. Here are some other things to keep in mind when news trading: When you have a directional bias, you are expecting the price to move in a certain direction, and you’ve got your orders in already. It is always good to…

What if there was a way to make money quickly even if you had no idea whether the market would move up or down? It’s possible as long as there is sufficient price volatility. And when can you get this volatility? When news like economic data or central bank announcements is released! The first thing to…

Let’s now see how to trade the news with a directional bias in a trading scenario. Let’s go back to our example of the U.S. unemployment rate report. Scenario: If the U.S. Unemployment Report showed improvement, why did the USD still weaken? Earlier, we gave examples of what could happen if the unemployment report came in light…

There’s no single strategy for trading the news. When the news hits, the price tends to spike in one direction or has a muted reaction to the data as traders digest the outcome against market expectations. Knowing this, there are two main approaches to trade the news: a) Having a directional bias b) Having a non-directional bias…

Before developing a ‘Trade the News” strategy, we have to look at which news events are even worth trading. You want to be able to answer, “Which news releases should I trade?” Forex traders should familiarize themselves with the key event risks that heavily impact the major currencies. Remember that we are trading the news because of its…

As forex traders, it’s important to pay attention to major economic data releases, speeches from government officials, and geopolitical events. Why? Because this information usually reflects the strength of a given economy and may indicate the future direction of a given currency. Trading the news is often difficult and not be suitable for everyone, but the…

It’s not enough to only know technical analysis when you trade. It’s just as important to know what makes the forex market move. Just like in the great Star Wars world, behind the trend lines, double tops, and head and shoulder patterns, there is a fundamental force behind these movements. This force is called the news!…