iSnare.com - Free Content Articles Directory
Authors Contents [Advanced Search][Add OpenSearch][Job Search]
Distribute your articles to thousands of article sites for only $2 and below! Read more...

Index  Business
 

Forex News Trader - How To Trade Forex Using News And Economic Releases

 
[ Contact the Author] [ Send to a Friend] [ Article Publisher] [Make PDF] [ Print] [ Bookmark & Share]
 
Read our Terms of Service before reprinting this article. The submitter specified above has claimed the rights to this article.
Peter Lim ,CFP

While many forex traders are technical traders and institute their trades based on technical indicators from a price chart, there are some traders who are basically pure forex news traders.

What is actually forex news trading?

The forex news trader is basically a forex trader who makes his decisions to trade based on news and reports that are released daily. He does not depend on any technical indicators at all.

Why is news trading possible?

The forex market is a 24 hours market, and there are 8 major currency pairs available for trading with well over 17 derivatives, therefore allowing the economic news releases almost daily from any one or more of these currency pairs to impact on their movements.

What are these 8 major currencies that forex traders often watch for economic news releases that impact on their value?

The eight major tradeable currencies are

1. U.S. dollar (USD)

2. British pound (GBP)

3. Euro (EUR)

4. Japanese yen (JPY)

5. Australian dollar (AUD)

6. Swiss franc (CHF)

7. Canadian dollar (CAD)

8. New Zealand dollar (NZD)

The availability of these currency pairs and their derivatives such as the USD/JPN, Euro/USD, AUD/USD and several others means that you can trade some currency or its derivative pair at any time as these currencies span the globe!

So for the forex trader who trades on the news, he will have his eyes and ears set on the release of economic news and data that affect currency values.

Generally, we will watch out for news regarding the interest rates or direction of interest rate such as the FOMC rate decisions, release of retail sales figures, indications of inflation which can be gauged from consumer price index or the producer price index, unemployment figures, news on industrial production, news that indicate a boost in business such as business sentiment surveys and consumer confidence surveys,manufacturing sector surveys and news on the country's trade balance(such as foreign purchases of US Treasuries).

Different new releases impact upon currencies, and often lead to breakouts in volatility.
The key to trading on news is to take advantage of these movements in volatility which can last a few minutes or hours, and even days into the future.

Trading purely on news release is harder than it seems, but the task is made easier and more profitable with the use of indicators, such as a breakout indicator as a bollinger band or a breakout of a candlestick or a price bar. Statistics have shown news release can trigger movements that range in size from 33 to 124 pips, leading to trading opportunities.

By studying into high probability trade setups that has occurred consistently with the release of historical economic data, the forex news trader can devise strategies that can allow him to extract fast profits from volatile movements arising from news releases. The potential gains can be massive where the forex news trader can react quickly.

Important NoticeDISCLAIMER: All information, content, and data in this article are sole opinions and/or findings of the individual user or organization that registered and submitted this article at Isnare.com without any fee. The article is strictly for educational or entertainment purposes only and should not be used in any way, implemented or applied without consultation from a professional. We at Isnare.com do not, in anyway, contribute or include our own findings, facts and opinions in any articles presented in this site. Publishing this article does not constitute Isnare.com's support or sponsorship for this article. Isnare.com is an article publishing service. Please read our Terms of Service for more information.

Are your forex trading activities bleeding your account dry? Discover how you can reverse these stunning losses with massive profits by visiting the author's blog http://1forex-trading.blogspot.com
Article Tags: currency [See Dictionary], forex [See Dictionary], news [See Dictionary]
Got a question about this article? Ask the community!
Article published on March 05, 2008 at Isnare.com
 
Rate [Ratings: 0 / 5] [Votes: 1]

Trading Coach Reveals How To Become A Super Trader
Submitted by: Peter Lim ,CFP

I had the tremendous pleasure to interview a well known professional trader and trading coach in Australia some time ago...

Forex Trading - How To Shave Years Off The Learning Curve To Become A Profitable Trader
Submitted by: Peter Lim ,CFP

Here is a true story about a professional forex trader Bob Aristide is making a consistent 5 figure income trading forex in the comfort of his own home...

It's A Shame For You Not To Trade Forex - When These People Do It So Easily
Submitted by: Peter Lim ,CFP

Do you know that among all the financial trading markets in the world, the largest market is not the stock market, but is the forex market...

How To Achieve Maximum Profits In Your Forex Trading
Submitted by: Peter Lim ,CFP

What is your main difficulty in forex trading Your main difficulty can be any one of a thousand possible answers, but if you are a trader, what is important to you is merely whether you have taken the correct trade in the right direction, and how much you will make or gain...

3 Practical Models To Quickly Earn And Maximize Google Adsense Revenue As A Publisher
Submitted by: Peter Lim ,CFP

Looking back in time, I could still remember standing in awe and reading the exploits of one adsense publisher who was starting a membership service for people keen to maximise their earnings as a google adsense publisher...

PLR Articles: How To Choose A Good Service
Submitted by: Nicole Dean

Private Label Rights (PLR) articles are hot right now The only problem is that many people have tried them and been very disappointed...

Online Marketing Blueprint to Success- You Owe it to Yourself Part 3
Submitted by: Dan Atkins

From my past experience, it is difficult to build a business if you jump from one business to another...

Communications – the Heart of Leadership Effectiveness
Submitted by: Ryan Scholz

My process for developing outstanding leaders is built around what I call the Four Pillars of Leadership Success...

Overcoming the Tendency to Micromanage
Submitted by: Ryan Scholz

A vast majority of people at all levels of an organization will accuse their boss of micromanagement...

Why Having a Website is Good For Your Business
Submitted by: Desmond Leong

Why A Website This is a question that has been posed many times...

Kick Your Upline's Butt by Getting Fast MLM Leads
Submitted by: Guy & Michele Luminato

When you get started in an MLM, the first thing you hear from your upline is that you want to work fast, and build your business quickly with momentum...

What to Look For When Considering an Internet Franchise Business, And Other Business Model Options
Submitted by: Guy & Michele Luminato

Entrepreneurs considering buying a internet business should compare a franchise business with a new business model that is extremely lucrative for a fraction of the investment cost...

Payroll Administration - Top 6 Benefits of Outsourcing For a Small to Medium Business
Submitted by: Daljeet Sidhu

Timely payment of wages is necessary for employee satisfaction and to keep them motivated The slightest lapse in this regard can prove very expensive...

Commercial Phone - How to Select the Right Telephone System For Small Business?
Submitted by: Daljeet Sidhu

Effective communication in business is crucial to having good relationships with customers, associates and partners...

Call Center Outsourcing - Top 6 Reasons it Preserves Critical Resources and Gives a Cost Advantage
Submitted by: Daljeet Sidhu

Call Center outsourcing has revolutionized business activities across the world by automating and streamlining customer support activities of companies...

Loving What You Do or Hate It
Submitted by: Brenda Williams

There is a saying that is always floating around that says something to the effect of, “Most people hate what they do for a living, but they do it just the same because it pays the bills...

Social Media and Business
Submitted by: Brenda Williams

Social media is not the joke that some people make it out to be Recently, I had a discussion with my boyfriend...

Before You Make That First Call to a Caterer
Submitted by: Gail Wise

Finding just any caterer is not that difficult Just go online and there are several web sites that can provide you with the names of lots of catering companies in your area...

Business Plans: An Overview
Submitted by: Simon Ekizian

Starting a business is perhaps the most difficult step in case you want to become an entrepreneur You might have a lot of zeal and enthusiasm coupled with the right amount of resources in your hands...

Making Tough Decisions
Submitted by: Ryan Scholz

Almost every senior leader in his or her career will face a tough decision Some may be “bet the company” type of decisions...

Isnare.com Footer Divider

© 2004-2009. Isnare Free Articles - An Isnare Online Technologies Free Articles Project. All Rights Reserved.   Privacy Policy