📺 NEWS
We understand trading on the news. Part 1
How to work with news in trading? (simple tutorial for the inexperienced and not only).
🗣 Fundamental analysis is quite important in trading.
If we consider the balance between fundamental and technical analysis, then for intraday and swing traders the technical analysis is important in the ratio of 75% / 25%, because news has a longer impact than technical analysis and you may not realize whether the price reacted to the news or not and you may miss a trading opportunity.
⭐️But for medium and long term, the picture is different - the emphasis is on the fundamental part.
Let's understand what is what:
Important tools to analyze:
1) Economic calendar (my opinion: investing (investing dot com) has the most convenient calendar)
2) Chart
3) Ability to read and analyze.
Let's look at the attached picture and learn how to use the economic calendar. There are also comments on the picture.
✅As for the basic strategy of trading on the news:
20-30 minutes before the publication of the news we do the following steps:
1) Either close part of the profit and wait for the news.
2) Either move stoploss to the entry point and wait for the news.
3) Either close part of the profit and move stop loss to the entry point and wait for the news.
4) Close all trades.
⚡️ IMPORTANT: News is an uncertain leverage on Forex pricing. No one really knows what will happen to the price at the moment of news publication and in 5-10-20 minutes. Our task is to minimize risks and try to survive in this market.
If you do not use stoploss in your trading and especially during trading before the news, you will be destroyed very quickly!
In the second part of this article we will look at working directly with the news and analyzing it before it comes out. Thanks :)
We understand trading on the news. Part 1
How to work with news in trading? (simple tutorial for the inexperienced and not only).
🗣 Fundamental analysis is quite important in trading.
If we consider the balance between fundamental and technical analysis, then for intraday and swing traders the technical analysis is important in the ratio of 75% / 25%, because news has a longer impact than technical analysis and you may not realize whether the price reacted to the news or not and you may miss a trading opportunity.
⭐️But for medium and long term, the picture is different - the emphasis is on the fundamental part.
Let's understand what is what:
Important tools to analyze:
1) Economic calendar (my opinion: investing (investing dot com) has the most convenient calendar)
2) Chart
3) Ability to read and analyze.
Let's look at the attached picture and learn how to use the economic calendar. There are also comments on the picture.
✅As for the basic strategy of trading on the news:
20-30 minutes before the publication of the news we do the following steps:
1) Either close part of the profit and wait for the news.
2) Either move stoploss to the entry point and wait for the news.
3) Either close part of the profit and move stop loss to the entry point and wait for the news.
4) Close all trades.
⚡️ IMPORTANT: News is an uncertain leverage on Forex pricing. No one really knows what will happen to the price at the moment of news publication and in 5-10-20 minutes. Our task is to minimize risks and try to survive in this market.
If you do not use stoploss in your trading and especially during trading before the news, you will be destroyed very quickly!
In the second part of this article we will look at working directly with the news and analyzing it before it comes out. Thanks :)