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How to trade the high-impact Forex news events and make profit of them?
If you’d like to get an insight into how I trade the news all you have to do is follow my posts every day and see how I’m analysing the markets and particularly, which news events I’m expecting will move the market the most.
For example, this week we had some high impact data from the UK which I was very interested in trading because I felt strongly that it would cause a rally on the pound. On the other hand, we had FOMC minutes last week, which is technically a high impact event but I wasn’t interested in trading that because from my analysis I kind of knew it wouldn’t really move the market too much.
It’s all about tuning in to the central banks and which data points are moving the market at any given time, and then trading those when they are released. So if you have an event coming out for the pound, a lot of people would expect that to be positive, you could trade the pound long before the data because even if it comes out negative, overall, we are very bullish on the pound. So even if the price pulls back a little bit, it still provides an opportunity to buy it back because you’re tuned into the news and you know which way the price should be moving.
A second way is to simply wait for the figure to be released, for example, if we’re looking for good data from the UK and we get good data, almost inevitably there will be a spike higher, but then the price will retrace for various reasons, and that’s where you can look to get in long on the pullback.
Basically you need to buy the dips and sell the rallies, but first of all you need to know which currencies you need to be buying or selling in the first place.
Every week I will provide a video of upcoming, hand-picked news events that I will be personally looking to trade. So watch out for those videos and follow the posts I provide every day and you should start to get a better understanding of how I trade the news.