Trading the Forex major news provides huge profit-taking opportunities. Those who can analyze the data with a high level of precision and trade with low risk become the ultimate winners. But winning is not enough when you are not able to trade the news. For this reason, Singaporean traders often opt in to trade during the major news. Though things seem pretty easy, this is one of the most difficult tasks for retail traders. Unless you have strong analytical skills, you won’t be able to take trades in the news.
So, how do the professionals take t trades and make money by trading the major news? Well, you need to focus on market dynamics and blend the fundamental data. To do so, you need to follow the steps mentioned in this article. Let’s learn the process of news trading so that you can make money during a big move.
Learn about the major news
You need to learn about the major news to become skilled at trading. People often fail to make money since they think taking trades in the minor news is enough. Minor news results in minor retracement in the price but for the trending movement, we require to focus on the key news. News like interest rate decision, GDP, NFP has a huge impact on the market. So, how can we learn to analyze such major news? Well, it is a very easy task because you can learn this technique by reading a few articles.
When the interest rate of a certain country goes higher, the valuation of the money increases steadily. The bank hikes its interest rate when the country’s economy does well. Unless the central bank is super sure that their economy is doing relatively well, there is a chance of increasing the interest rate. So, buying the asset will be a fair deal because you are taking part in the central bank. Just like these, all the major impact is related to the economy. Just take the time to learn the details.
Learning to analyze the 5-minute chart
You must have the ability to analyze the 5-minute chart to become good at news trading. For that, you will need access to a premium platform like SaxoTraderGo. If you are not sure about the professional platform feature, try it out here. Once you get used to the advanced trading tool, you will be able to analyze the 5-minute chart with the help of the price action signal. The reason why you should rely on the price action signal is the quality of the trade setup. You don’t want to risk a big sum of money to trade the news. The candlestick pattern trading method will allow you to trade with a tight stop even at a high level of volatility. This will increase the chance of making big profits and allow you to change your life.
Learn advance risk management technique
You can’t make big profits during the news unless you know the advanced risk management technique. People are biased when they trade with aggressive steps. They become restless and take high risks to earn more money. But such an approach is not going to work with the news trading method. The top news traders in the world always take managed risks so that they can accept the losses. Things might be hard for the rookies, but it is the only way you can secure a profit. Things are not as hard as they seem. Once you get used to the core concepts of trading, you will be able to boost the profit factor with low risk. There is a reason to take things aggressively. Follow the core steps to trade with discipline. Soon, you will learn to trade like a king.
