Trade Forex news very, very sexy. After all, who does not want to earn hundreds of thousands of dollars for a few minutes and he knows that you simply earn more than working for a whole month! It sounds exciting, right? Well, let's look at some of the basics that you need to understand in order to successfully trade the news.
Let there will be clear. Volatility in the market immediately after the news caused great forex traders. No, the big forex traders do not like risk, and rather stupid and allow novice traders to compete with each other for their small crop of money. It sounds harsh, but it's true.
The reason why the price so hard to move after the main news bulletins, is not that the market goes in and out so much money. The reason for the instability in that large forex players are sitting on the sidelines, so there is no one to take the opposite side of our trades.
That is why the price can move up to 50 points as quickly – no one wants to sell what you buy, so the price just goes up and up, until it becomes high enough that someone is willing to sell now.
So that means that in order to capitalize on the news a stable money, you need to wait until volatility subsides. Otherwise, you can click the purchase button at 1.2700, but you do not fill up to 1.2725. About this time the market will begin to fall, and you will have from 50 to 100 points before you can close the trade.
Professional traders take the time to read and digest the news before entering the auction. That is why the price may rise to 200 points 2 hours (trading for beginners), but then the next 4 hours (professional trades) gives back. The reason is that professional traders interpret the news with a long-term perspective and begin to sell. This leads to a drop in the market.
Thus, the best way to trade the news – to restrict the market – that is, to place orders above and below the current price far enough to have won both the extreme instability phase. Once one order is filled, cancel the other. This assures that you get in the market, if you like, and you can trade your plan without the intervention of market instability.