Trading The News
| Trading The News |
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| Wednesday, 17 September 2008 18:18 |
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Trading the news in forex has become popular among traders becau Forex News.net - Administrationse currency pairs can move up within minutes after a major news release. Trading news releases can be useful for traders because they spur short-term moves in the market. Because the market is open 24 hours, there are lots of opportunities for traders to catch market volatility triggered froForex News.net - Administrationm an economic news report. It’s a good idea to focus on large, stable economies for news trading such as the United States, Japan, European Union, and so on. It also important to be aware of when news releases are released in each country. For example, Italy releases its news from 8:45 to 10:00 (GMT) while Canada releases its news from 12:00 13:30 (GMT). This creates an availability of five to ten economy news releases a day. They are also helpful because they are scheduled in advanced and as a trader you can know exactly when to schedule your trading hours. Reports will focus on several areas within a country’s economy. For example, the U.S. market reports cover: employment growth, foreign purchase report, durable goods, inflation reports, retail sales, gross domestic product, trade balance, and interest rate decisions. Each of these areas will affect the U.S. currency one way or another. Remember that while the news report is important for long-term movement, in short-term usually the difference between the market expectancies and the news release is what causes breakouts. This means that reports that come out just as those in the market expect, usually do not create large movement. Also, the quieter the market is, the more likely it is to move after a large news release. Know your risks before entering into news trading. Market volatility can increase during releases, meaning the price can move in seconds. Many brokers will prevent limit and market orders before a large news release. This will cause the platform to ‘freeze’. To trade a news report, you first need to determine whether the report is valuable enough for trading. Not every news report will be tradable. Determine what has been |