One of the reasons that forex trading has grown (and is growing) so popular is because the markets are open 24 hours a day. While an individual country’s stock and bond markets are influenced mainly by the economic news of that country, the foreign exchange markets are influenced by the economic news of many countries.

Since the forex markets are open 24 hours a day and since countries release their economic data throughout the day, traders who can only trade at night or early morning can still take advantage of the major market moves that happen around economic news releases.

The main thing you have to consider when trading news is the extreme volatility that occurs. Sometimes a currency pair can move 50 pips in one direction in 2 minutes, and then turn around and move 200 pips in the opposite direction over the next 15 minutes. You, as a news trader, must be willing, able, and capable of handing this extreme volatility while still making money.

There are some keys to trading the news profitably that you must learn and practice in a demo account before you ever try this with real money.

1. You must identify which currency pairs to trade

Since 90% of forex trading involves the U.S. dollar, you definitely want to focus on U.S. news releases. This means you want to trade currencies like the EUR/USD, USD/GBP, AUD/USD, USD/CAD, etc. As a further hint, you want to focus on the currency pair that has the most liquidity (i.e. the ability to get in and out when you want), and that would be the EUR./USD.

2. You need a trading strategy that works and is repeatable

One of the worst ways to trade the news is to enter the market before the news is released or immediately after the release. This is when the newbie and greedy traders trade, and you want to take money from them, not trade with them. For more details please visit these sites:- crestreports.com
worldaffairnews.com
codenational.com
unitedfool.com
backwoodsnews.com
therapeuticmedicines.com
therealtortimes.com
ayurvediccart.com
cannabissaga.com
michianajournal.com

That being the case, you can employ two news trading strategies.

First, straddle the market with entry orders. This means when the market hits your desired price, a trade will automatically be opened. You then cancel the other order. This allows you to get into the market when you want to get in, not when the market lets you in.

Second, you can wait for the volatility to subside and then enter a trade. Sure, you might not make as much money as you would if you got lucky, entered the trade before the news, and the market happened to go your way. But by waiting, you increase your odds of being profitable which, in the long term, will make you much more money.

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