Forex trading according to the news This is a form of exchange trading that is loved by many traders. Because traders can make many times more profit than a day trade. However, the top 10 reputable forex brokers today perform a 2-head sweep when there is new news, so the news forex trading method really has a lot of potential risks in it. Although the market is moving in the right direction that you analyze, but before going in that direction, there were orders running backwards and unfortunately these orders burned your account, affecting your assets. So how to trade Forex according to the news is safe and get the best profit by avoiding trading risks. Let's find out through the following article.
Forex trading overview by news
News is considered an important part of Forex because when news hits the market it will become exciting, at that time there will be traders who are happy because they can increase their profits, but there are also traders who are sad because of the amount of money. in your accounts. Although carrying the body is a double-edged sword, investors are still very interested in the profits that the news brings in trading moments.
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Potential Risks When Trading Forex According to the News
When it comes to trading advantages, any trader can know. However, higher profits mean better risks, so you have to be very careful. We will list for you some of the hidden dangers of Forex news trading:
spread gian
This is a story that will often be encountered when news comes out, for Forex exchanges and crappy or unnamed brokers all have this tumultuous situation. Such an action occurs because the novelty is that when the market is buying and selling, the Forex Signals ratio fluctuates more. Even investors themselves do not know how the price will go up or down, so to avoid risks, investors are obliged to widen the spread, which any trader at this point accepts to lose.
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The command was recited
Requote – requote means the order is not executed at the time of placing the order or it can be executed but not displayed at that time but it will take some time for you to see the order appear. At this time, the market will have other adjustments to your order, if done at the right time, you will make a profit, but if you are late, you will lose. And there is a case if you think the order has not been executed then you keep clicking to order, until you look back you will see a series of orders appearing at the same time and with the same price, making your account riskier. !
Slip (slip)
Slippage, a slippage order, is the difference between the executed price and the original price during strong market volatility. Your trade may be executed at a different price than the actual price when your order was executed. This makes it difficult for you to understand the current price and make ordering decisions.
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Forex trading method according to safe news, limit risks
If you are not a professional trader, it is best to stay away during news hours. To do this is very simple, you just need to follow the economic calendar on sites like investing or forexfactory, you will know when there is strong volatile news or when the market is calm or stable for you to take advantage of. In addition, you can also wait 10-15 minutes after you believe that the market will return to its own trajectory, the spread will also begin to stabilize to re-enter the order to continue trading.
In case you want to trade news, it is important that you carefully analyze the currency pair you want to trade, to know what is its trend, read more news and come up with scenarios. For example, when you wait for the price to break the trend lines to confirm that the price is following the scenario you analyze, you can enter an order from there.
Also, instead of you using Sell Limit or Buy Limit at the time of news trading, you can think about using Sell Stop or Buy Stop to minimize requote or slippage. A little tip, before the news that the market is going sideways, wait until the news is out to start breaking out of the resistance area. Therefore, it is necessary to do a thorough analysis to avoid unnecessary risks. Please wait patiently for the next opportunity, you can place an order before it's too late.
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As investors do not have much time to focus only on the news that needs to be allocated in other stages of the analysis, it is necessary to select the types of news that are really valuable and with potential for movement. The Forex market is essential. News related to interest rates or USD will create huge volatility in the market. Therefore, you should regularly monitor and update the latest news so that transactions go according to your plan and expectations.
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Conclusion
Investing through Forex news trading is like holding a double edged sword in your hand, if you hold it correctly it helps you to surf the investment waves, make profits easily but if you hold it wrong it will affect you and your Personal account. Through this article, we hope that we can help you achieve maximum opportunities to increase your personal income, wish you success and don't forget to follow us to read and learn more about the main currency pairs on Forex. will choose which virtual currency to invest in.
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