A Beginner's Guide to Trading Forex News

It's critical for forex traders to pay attention to big economic data releases, government statements, and geopolitical events.

Why？

Because this information usually represents an economy's strength and can predict the future direction of a currency.

Trade the news might be tough and not fit for everyone, but the resulting volatility can provide a plethora of trading chances.

What's the point of trading news？

“To make more money!” is the easy response to that question.

In all seriousness, as we discussed in the last lesson, news is a critical component of the forex market because it has the ability to move the market!

When huge news breaks, especially crucial news that everyone is watching, you can almost guarantee that there will be significant movement.

Because you know the market will most certainly move in a certain direction, it's an opportunity worth considering.

As a news trader, your goal is to get on the right side of the move.

The Risks of Investing in News

There are always potential risks with any trading method that you should be aware of.

Here are a few of the threats:

The spreads are getting wider.

Because the forex market is extremely volatile during major news events, several forex brokers WIDEN their spreads.

This raises trading costs and may have a negative impact on your bottom line.

You may potentially be “locked out,” which implies that your deal was executed correctly but did not appear on your trading platform for a few minutes.

This is problematic since you won't be able to modify your strategy if the trade goes against you!

Imagine thinking you weren't triggered and attempting to enter at market price... only to discover that your original order had been triggered!

You'd be putting your life in jeopardy TWICE as much now!

Price Changes

SLIPPAGE is another possibility.

Slippage occurs when you want to enter the market at a specific price, but the increased volatility during these events causes you to be filled at a far DIFFERENT price.

Large market swings triggered by news events rarely move in one way.

Frequently, the market will begin to move in one direction only to be whipsawed back in the opposite direction.

Trying to figure out where you're going can be a pain!

Trading the news, as profitable as it is, isn't as simple as beating some toddler in Fornite. It will necessitate a great deal of practice, practice, and more practice!

Above all, you must ALWAYS have a strategy in place.

We'll show you how to trade the news securely in the classes that follow.