Forex news trading is probably one of the most exciting forms of trading because it can produce instant profits and instant gratification. I was never a huge fan of news trading but I am getting lots of questions in terms of how to trade around big Forex news events.
Through this news trading strategy guides, you’ll learn how to trade the Non-Farm Payroll Report (NFP), FOMC, central bank interest rate decisions and any big Forex news events. What you’re about to learn throughout this Forex news trading guide is extremely valuable because there are a tiny, tiny few traders in the entire world who apparently are able to correctly trade the news.
What is Forex News Trading
The news represents great profit opportunities for Forex traders. By news, we mean various economic data releases. Every major economy regularly publishes statistics like GDP, inflation, unemployment rate, etc. If you trade Forex during the times of these releases, you have a chance to make a lot of money. However, we have to warn you that potentially big profits always come hand in hand with bigger risks. Volatility spikes during these periods and prices may move in a disorderly fashion. If you don’t have a solid trading plan for a particular event, it’s better not to engage in any trades at all.
WHAT NEWS SHOULD I BE LOOKING AT
Before we even look at strategies for trading news events, we have to look at which news events are even worth trading. Remember that we are trading the news because of its ability to increase volatility in the short term, so naturally, we would like to only trade news that has the best forex market moving potential. While the markets react to most economic news from various countries, the biggest movers and most watched news come from the U.S. The reason is that the U.S. has the largest economy in the world and the U.S. Dollar is the world’s reserve currency. This means that the U.S. Dollar is a participant in about 90% of all forex transactions, which makes U.S. news and data important to watch. With that said, let’s take a look at some of the most volatile news for the U.S.
WHERE CAN I GET THE NEWS
What you want to look for in your MT4 Expert Advisor (EA) for News Trading
Before we even go to what to look out for, let me explain what an MT4 EA (Expert Advisor) is for our friends who are new to this. An MT4 EA (Expert Advisor) basically programs in the terminal that has been developed in MetaQuotes Language 4 (MQL4) and used for automation of analytical and trading processes. They allow your Metatrader 4 to perform prompt technical analysis of price data and manage trading activities on the basis of signals received. Some MT4 EA (Expert Advisor) are automatic, meaning it will trade on your behalf, some of them are basically “assistance” to your trading and you have to manually enter the trade.
So, how that I have explain what MT4 EA (Expert Advisor) is or are, do take note of this. THERE ARE THOUSANDS of people making claims that you can be rich using their MT4 EA (Expert Advisor). And if this is true, trust me, they will not be stuck as a programmer and they will be using their MT4 EA (Expert Advisor) to make million of dollars for themselves.
Personally, I will like to see an MT4 EA (Expert Advisor) as an extension or assistance to me. Automating some of the process that I might be too slow in executing, or taking my instructions to handle some trades while Pikapool is sleeping.
So let’s us take a look at the chart below and compare some of the features of MT4 EA (Expert Advisor) designed specifically for trading news breakout.
MT4 EA (Expert Advisor) – News Trading
What is Slippage
What is Pipsaway