Making Pips With Forex News
Unlike stock markets, forex markets are open 24/5 except on the weekends. There is a continuous price action all day in the currency markets. Do you know this fact more than 90% of forex traders are speculators?
Forex markets have the tendency to react violently to the release of economic and socio political news. You cant predict when important sociopolitical event will be breaking news.
Fundamental economic news like NFP figures, the housing sales number, FOMC meeting etc all are released at a known time. Google Fundamental News and you will see lots of sites that provide this information.
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.
Non Farm Payroll (NFP) figures are released regularly at 8:30 AM EST on the first Friday of every month. EUR/USD and other USD pairs become very jittery just before the release of these figures. EUR/USD can sometimes shoot up by 50-150 pips in 5-10 minutes just after the release of these figures.
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 trading is ideal for those traders who like a lot of action within few minutes. Here is one strategy that you can use.
Enter both buy and sell orders on for example EUR/USD at 10 pips above and below the price of EUR/USD just five minutes before the announcement of NFP figures.
Put stop loss of 10 pips for both the orders. Put take profit of 40 pips on both orders. When the NFP figures are announced, EUR/USD will usually react violently and either shoots 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?
If EUR/USD goes down by 10 pips, the sell order will be triggered and you will still make 40 pips. However, sometimes the markets have a tendency to whipsaw. Practice this on your demo account first and make ten successful trades before going live. - 23159
Forex markets have the tendency to react violently to the release of economic and socio political news. You cant predict when important sociopolitical event will be breaking news.
Fundamental economic news like NFP figures, the housing sales number, FOMC meeting etc all are released at a known time. Google Fundamental News and you will see lots of sites that provide this information.
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.
Non Farm Payroll (NFP) figures are released regularly at 8:30 AM EST on the first Friday of every month. EUR/USD and other USD pairs become very jittery just before the release of these figures. EUR/USD can sometimes shoot up by 50-150 pips in 5-10 minutes just after the release of these figures.
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 trading is ideal for those traders who like a lot of action within few minutes. Here is one strategy that you can use.
Enter both buy and sell orders on for example EUR/USD at 10 pips above and below the price of EUR/USD just five minutes before the announcement of NFP figures.
Put stop loss of 10 pips for both the orders. Put take profit of 40 pips on both orders. When the NFP figures are announced, EUR/USD will usually react violently and either shoots 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?
If EUR/USD goes down by 10 pips, the sell order will be triggered and you will still make 40 pips. However, sometimes the markets have a tendency to whipsaw. Practice this on your demo account first and make ten successful trades before going live. - 23159
About the Author:
Mr. Ahmad Hassam has done Masters from Harvard University. 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 @ 2:56 AM
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