Fundamental Forex News could be very profitable for many and in the same time could be very Not profitable for many users. If you ever decide to try trading the news below you have some of the greatest tips available so you can trade profitably during Forex news releases. Like any fundamental information you have to take care of the aspects and the difference between the numbers released and the numbers expected, since this is the most essential in News Trading. Below you will find the Tips:
1. Decide Your Risk Percent.
Like in any trading technique this is one of the most important stuff. You do not want to wake up and see your account blown, for this you need to take care of your risk %. Most of the traders recomend to use at most 2% of risk during News Release, but to be save for begining try to risk 1% since during news you could have arround 1-3% return and that is very good for your trading day.
2. Decide the News you would trade
Check the news releases which are confortable for your working hours, otherwise you will have to stay awake at midnight and this influences your decision machanism and you will make mistakes which you will regret in the morning. No worries – there will be everytime other news to trade, do not run on the first release comming – if you think that is not for you then it indeed is not for you
3. Choose the Pair which is more responsive to that News Release
Make a small reasearch and check which are the trading pairs more responsive to that News Release. Most of the traders trade the majors like :
EUR/USD, USD/JPY, AUD/USD, GBP/JPY, EUR/CHF, CHF/JPY. The more volatile is the pair during the news release – the more profit you oculd have in your pocket
4. Draw Support and Resistance Trendlines for M15 and H1 charts.
Those lines of support and resistance will tell you what is the possible move of the pair if the release is not as one expected. Most of the times the market will break local trendline of support or resistance and will go to the higher TimeFrames support or resistance lines. You also can use Fibonacci to check those lines of Support and Resistance
5. Define Your Entry Levels
After you have your support and Resistence lines place your orders few pips away from them – after the breakout will occur you want to be the first one which will enter the market in the right Direction. If the market will not break those lines then is better just to stay away.
6. Enter the trade at your levels only
this is more of the confirmation that you are in the right direction. Wait for the news and just watch the market if you placed the pending orders or get ready to enter your order as soon as your support or resistnace level got hit.
7. Exit profitably at once or trail your profits
stay neear to your PC and as soon as you will see that you are in at least 10-15 pips profit move your Stop Loss to break Even anf then just watch the market and use a trailing Stop for more profits or exit as soon as you will get your 30-50 pips or depending on the news release.