Forex market news releases
The forex market offers on a daily basis trading opportunities to make money. So how to trade online and make money around major fundamental news releases? Investing in the forex market can be very profitable given some conditions, mainly trade with the major trend and not against it. An interesting approach to forex trading is the news releases, which are very often during the period of one week for various currencies. There are two main approaches to news releases and online trading. Trade before the news and after the news.
We will share some insight on each of the two methods. Basically there is not correct or wrong approach. It all sums up to high probabilities trading.
The first method is to trade before the news. Many times the financial markets and the forex market discount the possible effect of any news. The result is a trend that begins a few days or hours before the announcement. The trend may be weak, or in many cases a strong one resulting in nice profits with proper timing and risk management. This is maybe the safest way to trade the news. An established trend that may reverse or continue until actual news are released. It is the safest investing way because odds are that there will be no spikes or many volatile moves for a period of time.
But timing and patience is important. If you miss the major move then it is wise to stay aside.
Risky investment.
The second method is to trade at the release or after the news announcement. This method of investing is often too risky. The riskiest move is to have a position open and keep it until real news are published. Many volatile moves happen within minutes, even the first minute of the release of a major factor like interest rate hike or not.
The worst thing that can happen is to have a decent profit and turn it to a loss after the news are being released. It happens very often. And is not pleasant. So how to actually place trades waiting for any major news? The magic word is wait and be patience. Let the news be released, then wait for a few minutes. Evaluate the condition.
If a strong move take place, then do not chase the market. Wait for any price pullback, up or down and then place any trade. The best scenario if this case is to have an open position before the announcement and when results are live to have a strong move in your initial point of view, either up or down. But probabilities are not good, this is pure speculation and luck.
In trading and investing luck is not always on our side. We need a good trading plan and solid risk management. And to have the probabilities calculated. There are no foolproof trades or guarantees of success but only treating investing seriously as a real business.
