Notes

News Trading (Part II)
There is a lot of news on the planet that can move the currency marketplaces. Fundamental economic media releases often disrupt the temporary fx markets and quarterly reports carry additional weight than typically the monthly and each week news. There are usually many strategies intended for news trading utilized by the money traders.

The news may possibly shock the money markets for a while. Sometimes, the particular results of fundamental economic announcements are usually surprising. For example, the discharge of the NFP figures provides been moving typically the EUR/USD currency pair on average one hundred pips for the last two years. Just within 2 minutes of typically the release from the NFP figures on 8: 30 AM EST Friday about half regarding these pips take place.

Consider this worst case scenario. You are a news dealer and immediately promote the EUR/USD money pair within 2-5 seconds after typically the release of the particular NFP figures on Friday. However , typically the EUR/USD has fallen 30 pips because of the before news guessers that are anticipating a bad news and want to close their open positions.

Your forex broker gets thousands regarding sell orders just like yours nearly at the equivalent moment. It is going to take your dealer a few mere seconds to execute these types of orders. Meantime, typically the EUR/USD pair comes another 15 pips while you watch for your order to be executed.

Since no traders are usually placing the buy requests, the volatility is certainly extreme to typically the downside. The loan broker widens the pips from 3 to be able to 12. The moment your own order hits typically the market, you are already at a new 12 pips loss. You are in addition 45 pips away from where you thought industry would be.

All of a new sudden, the EUR/USD pair starts to move back. But you possess already pulled the trigger and joined the EUR/USD sell off order. Now you are in a loss of 55 pips and you get out of your trade to cut your losses. Additional info might be angry and you wish to blame typically the broker. But you can't blame the broker.

Could onlu sign an agreement when you opened your investing account. You have to have look at the agreement you created using typically the forex broker any time opening the consideration. There will definitely be a terms in it that says that the broker does not guarantee order delivery at times an excellent source of volatility.

Do media traders always finish up like this? Not really always. But most could and do finish up behaving this course of action often. This typically depends on typically the importance or delight results of the financial announcement.

So you need to produce a survival strategy. Perform all that not really to lose money. This survival strategy telephone calls for the storage of your money at all cost while from the same time giving you utmost pips if an individual really want to trade the news.

Your goal is not for making as much cash as you can. It is usually to reduce your current risk by with patience waiting for conservative repeatable setups. News buying and selling puts a dealers patience to test and your goal should be to use the excessive volatility to recognize the top levels associated with support and opposition.

Mr. Ahmad Hassam has done Masters from Harvard University or college. Download my forex currency trading system FREE which makes 100-200 pips each trade with the small 10-15 pip stop loss. Download this kind of eBook, "How My partner and i made $2M inside the stock market", FREE.
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