Wednesday, September 15, 2010

Success in News Trading

How do you take advantage of the fast Forex markets during news time? With so many currency pairs that each retail broker offers how do you determine which pair to trade? What it comes down to is finding a currency pair that likes to move significantly around news time. This happens on many of the currency pairs but sticking one or two different pairs is your best bet. Depending on the news event you are facing, for example, nonfarm payroll you most likely want to trade a US dollar currency pair. However, if you are facing a European or Great Britain news event such as euro retail sales, you would want to trade a euro pair or Great Britain pair.

So many traders would like to trade the Forex market during news time. If you don't understand how to trade the news, then your potentially taken a trade that can work against you. In trading, you need to have the advantages on your side and not go against the big money traders. News trading will either make you a lot of money or or you may lose a lot of money. Knowing which news event to trade and how much to trade is also very important around news time. A lot of people just get into a trade based on the news numbers before or after the release time. There are so many times we've entered a long trade only to see it go up in your favor and then drop significantly the other way.

Within the last five years a product called Oracle trader has been under development. This product allows you to predict the market at the moment news release comes out. This takes away all the guessing in trading. You are predicting which direction the market will move milliseconds before the trade is triggered. This is a huge advantage to all the other news traders out there. You also have access to this information quick enough to get your order filled and make some significant profit. Now there is a learning curve to trading the news, but after watching a few events you should be in the right spot.

Which news events to trade?

Although there are hundreds of news releases each month, you are better off sticking to the main news releases you know will trigger a trade. These events include the nonfarm payroll, Canadian unemployment number, US retail sales, Great Britain retail sales, and a few others. Don't try to force trades on news events. Let the trades come to you and the success rate will increase over time. If there's something you don't understand about news trading we recommend you read several different articles online to help you understand what it is all about.

After a few months of news trading you will soon understand how powerful it is. You may be disappointed that there might not be any trades in a certain period of time, but that's the beauty of this trading style it will keep you away from harm. It will only put you in trades where it knows it has the potential for winning. Oracle trader will allow you to access the markets at the best points in time with the least amount of risk.

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