Notes

Media Trading (Part II)
There is a lot of news on the globe that can proceed the currency markets. Fundamental economic media releases often interrupt the short-run fx markets and quarterly reports carry even more weight than the monthly and each week news. There happen to be many strategies regarding news trading applied by the money traders.

Good news may shock the currency markets for the while. Sometimes, the particular results of essential economic announcements are surprising. For example, the discharge of the NFP figures provides been moving the particular EUR/USD currency pair on average 100 pips for the last two yrs. Just within two minutes of typically the release in the NFP figures on 7: 30 AM SE RÉVÈLE ÊTRE Friday about half of these pips happen.

Consider this worst case scenario. You are a news dealer and immediately market the EUR/USD currency pair within 2-5 seconds after the release of the particular NFP figures upon Friday. However , the EUR/USD has already decreased 30 pips due to the fact of the pre news guessers who are anticipating some sort of bad news and want to close their open positions.

Your forex broker gets thousands of sell orders just like yours almost at the equivalent moment. It will certainly take your agent a few just a few seconds to execute these types of orders. Meantime, typically the EUR/USD pair falls another 15 pips while you wait for your order to be able to be executed.

While no traders are usually placing the buy orders, the volatility is definitely extreme to the downside. The loans broker widens the pips from 3 in order to 12. As soon as New Business Logo hits typically the market, you will be already at some sort of 12 pips reduction. You are also 45 pips far from where you believed the market would become.

All of some sort of sudden, the EUR/USD pair starts to move back. However, you include already pulled your trigger and entered the EUR/USD market order. Now you are at a damage of 55 pips and you quit your trade to slice your losses. You will be angry and a person want to blame typically the broker. But an individual can't blame typically the broker.

Could onlu indication an agreement when you opened your trading account. You ought to have look at the agreement you created using the particular forex broker whenever opening the accounts. There will certainly be an offer in it that will says that the particular broker does not necessarily guarantee order delivery at times of high volatility.

Do news traders always finish up like this? Not necessarily always. Several can easily and do end up behaving this way quite often. This generally depends on the importance or surprise results of the economic announcement.

So a person need to produce a survival strategy. Do all that not necessarily to generate losses. This survival strategy cell phone calls for the maintenance of your money by any means while with the same time giving you optimum pips if you actually want to trade the particular news.

Your priority is not for making as much cash as you can. It is to reduce your own risk by with patience awaiting conservative repeatable setups. News buying and selling puts a traders patience to test and your target should be in order to use the excessive volatility to discover the important levels associated with support and weight.

Mr. Ahmad Hassam has done Masters from Harvard College. Download my forex currency trading system FREE which makes 100-200 pips for every trade with a new small 10-15 pip stoploss. Download this eBook, "How I actually made $2M in the stock market", FREE.
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