While most traders are more comfortable with technical analysis, utilizing fundamental analysis is also a great option to get huge profit in forex trading. In this article, I'll cover one of the most profitable fundamental analysis based method: trade forex on news releases. To get started on trading Forex on New releases you should be aware of some basic things. I have discussed the important things you would need to know down below. It would help you get started on trading on Forex News Releases.
What are the currencies you should focus when trading?
There are many currencies in the market, on the other hand you'll want to give attention to currencies that make a huge impact. The currencies that you should focus on would be the US dollar, Euro, British pound, Swiss franc, Japanese Yen, Australian dollar, Canadian dollar and New Zealand dollar.You should also must know what particular time the economic release of all the following country.
What Are Key Releases?
If you want to trade news, you'll have to know the releases for the week. There are tons of methods to do it; one example will be through daily FX. After knowing that, you would need to figure out what data is important. The important keys you need to know would be Interest rate decision, Retail sales, Inflation (consumer price or producer price), Unemployment, Industrial production, Business sentiment surveys, consumer confidence surveys, Trade balance, and Manufacturing sector surveys.
How To Trade News?
In trading news, find the period of consolidation that is ahead in big numbers , then just trade the breakout on the back of the number. It is possible on a daily basis or on a shot term intraday. The main problem you would have in trading news would be volatility. You may be making the right moves but the market won’t let it because they are unable to sustain your move.
Bottom Line
The currency market changes constantly because of the release of news from the whole the world. In this case, news based trading will be doable if you know what to do. You need to remember when releases are expected and what are the important ones given the existing economic situation. With that information, you can use the data to decide the trade. And that's how you trade forex on news releases.
Read more strategies and guidelines on trading currencies at fx trading systems. Also, uncover the ideal place to trade currencies at online broker reviews.