Making Pips With Forex News
Forex markets are unlike stock markets. Currency markets are open 24/5 except on the weekends. Continuous price action takes place all day in the currency markets. Do you know this that more than 90% of people trading forex 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 news like NFP figures, the housing sales number, FOMC meeting etc all are released at a known time every month. You can Google fundamental news to find a lot of sites that provide this information.
One these websites, you will find the day and time when a major economic announcement is expected. Non Form Payroll (NFP) figures have recently become very important for USD.
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.
Markets will mostly stabilize within a few hours after the release of fundamental news unless it is of such a fundamental nature to form a new trend in the market.
News release trading is ideal for those traders who like a lot of action within few minutes. Here is one strategy described below 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.
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.
If it goes up by 10 pips, buy order will be triggered. Lets say, EUR/USD jumps by 60 pips. Your position will be automatically closed at 50 pips. You made 40 pips. Isnt it enough for a few minutes of work?
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. - 23217
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 news like NFP figures, the housing sales number, FOMC meeting etc all are released at a known time every month. You can Google fundamental news to find a lot of sites that provide this information.
One these websites, you will find the day and time when a major economic announcement is expected. Non Form Payroll (NFP) figures have recently become very important for USD.
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.
Markets will mostly stabilize within a few hours after the release of fundamental news unless it is of such a fundamental nature to form a new trend in the market.
News release trading is ideal for those traders who like a lot of action within few minutes. Here is one strategy described below 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.
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.
If it goes up by 10 pips, buy order will be triggered. Lets say, EUR/USD jumps by 60 pips. Your position will be automatically closed at 50 pips. You made 40 pips. Isnt it enough for a few minutes of work?
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. - 23217
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 @ 2:14 AM
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