Make Pips With Forex News
Forex markets are open 24/5 except on the weekends. You can see continuous price action all day in the currency markets. More than 90% of forex traders are speculators.
Forex markets usually react violently to the release of economic and socio political news. Currency rates can either shoot up or down violently for a few minutes to a few hours before the jittery traders absorbs the impact of the news.
But economic news release like NFP figures every month, the housing sales number, FOMC meeting etc all are known before time. Just Google Fundamental News and you will see lots of websites that provide this service.
These sites will give you the day and time when a major economic announcement is going to be made. Non Form Payroll (NFP) figures have recently become very important for USD pairs especially after the start of the recession.
NFP figures are released at 8:30 AM EST on the first Friday of each month. Currency pairs like EUR/USD become very violent just after the release of these figures. EUR/USD can shoot up sometime by 50-100 pips in 5-10 minutes.
The markets mostly stabilize within a few hours after the release of an important economic news unless the news is of such a fundamental nature to form a new trend in the market.
Forex news release trading is best for those traders who like a lot of action within few minutes. Here is one strategy described in short that you can use.
Suppose you want to trade EUR/USD. Enter both buy and sell orders at 10 pips above and below the price of EUR/USD just a few minutes before the announcement of NFP figures.
Place stop loss of 10 pips for both the orders. Place take profit of 40 pips on both orders. When the NFP figures are announced, EUR/USD will either shoot up or down.
Suppose EUR/USD goes up by 10 pips, buy order will be triggered. Suppose it jumps by 60 pips. Your position will be closed at 50 pips when you have taken profit of 40 pips. Isnt it cool you made 40 pips in just a few minutes?
Suppose EUR/USD goes down by 10 pips, the sell order will be triggered and you will still make 40 pips. Be careful, sometimes the markets have a tendency to whipsaw. Practice this on your demo account first and make ten successful trades before going live. - 23199
Forex markets usually react violently to the release of economic and socio political news. Currency rates can either shoot up or down violently for a few minutes to a few hours before the jittery traders absorbs the impact of the news.
But economic news release like NFP figures every month, the housing sales number, FOMC meeting etc all are known before time. Just Google Fundamental News and you will see lots of websites that provide this service.
These sites will give you the day and time when a major economic announcement is going to be made. Non Form Payroll (NFP) figures have recently become very important for USD pairs especially after the start of the recession.
NFP figures are released at 8:30 AM EST on the first Friday of each month. Currency pairs like EUR/USD become very violent just after the release of these figures. EUR/USD can shoot up sometime by 50-100 pips in 5-10 minutes.
The markets mostly stabilize within a few hours after the release of an important economic news unless the news is of such a fundamental nature to form a new trend in the market.
Forex news release trading is best for those traders who like a lot of action within few minutes. Here is one strategy described in short that you can use.
Suppose you want to trade EUR/USD. Enter both buy and sell orders at 10 pips above and below the price of EUR/USD just a few minutes before the announcement of NFP figures.
Place stop loss of 10 pips for both the orders. Place take profit of 40 pips on both orders. When the NFP figures are announced, EUR/USD will either shoot up or down.
Suppose EUR/USD goes up by 10 pips, buy order will be triggered. Suppose it jumps by 60 pips. Your position will be closed at 50 pips when you have taken profit of 40 pips. Isnt it cool you made 40 pips in just a few minutes?
Suppose EUR/USD goes down by 10 pips, the sell order will be triggered and you will still make 40 pips. Be careful, sometimes the markets have a tendency to whipsaw. Practice this on your demo account first and make ten successful trades before going live. - 23199
About the Author:
Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in day trading; stocks and forex. Download Forex Scalping Cheat Sheets. Discover The Best Forex Signal Service! Read about Trend Forex System.
posted by X - Men @ 2:16 AM
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