Forex News Trading

Forex News Trading requires a good strategy one with a firm commitment to a trading system that works. If you are a forex trader that believes that the moves in currencies reflect the fundamentals, it's wise to follow forex news.

You will see that much of the fundamental news will have an impact on the market and some will only impact affect certain currencies. As forex news trader your must figure out what news is important to which relevant currency pair.

I find that interest rate decisions, and GDP numbers are what I consider the most important news announcements and I am sure to be keeping a close watch on these feeds for Forex News Trading. Once you establish which currency pair to trade then you will have to watch the markets reaction to the numbers from the start of this strategy to observe how the air reacts. Often this is what traders miss the element of patience, in the game patience can make you or break you. You will see that currencies may not report how you would expect on certain announcements. Sometimes pairs will react opposite of what you would expect, these are all part of the big money 'games' as myself and BT like to call it.

Once you think about your strategy in a trade and decide which way you will trade and why, you can prepare for Forex News Trading.

An issue common among retail traders that I often see is that every forex broker has a different policies on Forex news trading some have variable spreads and some have fixed spreads. You will notice some brokers will widen the spreads while others may not do so during news.

Forex News Trading - Fixed

I find that fixed spreads work well with news trading, however this will depend upon the broker. They may fill you but then often requote or sli your trade. This will cause delay and sometimes unwarranted losses.

Forex News Trading - Variable

This means the broker will widen the spread, the problem here is during news these brokers may get our of hand and widen spread to 10 or 20 pips on a single pair.

The bottom line is trading can be a wonderful career, if you follow some specific steps I lay out in my training program in Euro session I feel you will do very well. Below is a video on a news trade I took with the USD/CHF ...dont forget to follow us at twitter, see our specials on our forex trading room page.

Regards,
Marco (FT)