News trading offers a great profit taking the opportunity to the retail traders. The currency pairs become extremely volatile and the traders can take advantage of the market volatility to make big profits from this market. However, learning to trade the major news is not all complicated. If you can learn the basic stuff like the Singaporean trader, you can trade the high impact news with an extreme level of accuracy. Before you decide to trade the major news, try to find a reliable broker like Saxo Capital Markets Pte who can give you access to robust trading platforms. Unless you can trade this market with an elite broker, you should never try to trade the major news.
We all know that trading in a volatile market is a super complicated task. But if you look at the skilled trades, you will think they have access to insider information. But this is nothing but a myth. Follow the steps of this article and you will be able to trade the major news.
Identify the major news
The first thing that you should learn is to identify the major news. The naïve traders don’t have enough skill to find important news factors. News like NFP, interest rate change, unemployment claim, average hourly income, etc. has an intense effect on the major currency pairs. So, be prepared to deal with a high level of volatility in the event of such major news. But make sure you are not trading this market with real money at the learning stage. Get yourself a demo account and try to learn the details of the major news so that you can make a decent profit without facing a big loss.
Develop a news trading strategy
With the help of a demo account, the pro trader’s in the CFD trading industry always develop a unique news trading strategy. Without having access to a robust news trading strategy, it’s nearly impossible to make a profit from this market. Trading is more like finding the best possible trades with low risk. The trading strategy allows the traders to find the potential entry and exit points in the market. Those who are thinking about buying a news trading method from an online source are making a big mistake. No one can make a profit by using other people’s trading methods easily when it comes to news trading strategy.
Back-test your trading method
Back-testing your news trading method is one of the most important tasks. If you trade with the unverified trading method, you might even blow up the trading account. To back-test your trading strategy, you can use a Forex simulator and or rely on the demo account. You might find many faults during the back-testing process but this is by far the most effective way to reduce the risk. Note down the weakness in your news trading method and try to find solutions. If you find it hard to solve the problems, ask help from the scenario traders in the community. The expert traders can give you a unique solution to your problem.
Trade with the best broker
If you intend to trade the major news, make sure you trade this market with the best broker. Unless you trade the market with the high-end brokers, you will have to face a faulty trading environment. Most of the time the traders don’t understand why they should choose an elite broker. The low-quality brokers often increase the spread during the news trading process and it becomes very hard for retail traders to make a profit. You should think like the professional traders and focus on the quality of your trading environment. Learn more about the features of the premium broker so that you don’t have to lose a big portion of your trading capital. Think about the safety of your trading and trade the market with rational logic. Never try to make money by trading with an unregulated broker.