The Trading Based on Forex News

You cannot override the effect, which Forex news is owned on the markets simply, if you did, it is certainly that you will neglect your system based on technical analysis at a certain point, but you do not know that your system is innocent as far as your ignorance impact Forex news on the market.

Before you think in trading in the Forex market, you have to know what the things that move the market are. The answer for this is simply: Forex News! Regardless of the quality of technical analysis are you using. If you are not aware of the basic news that drives global market already, you'll be at loss frequent moves that you will see it is strange.

Forex plays the task to move the market because traders acting as a reaction to the issuance of the news, and you will be better prepared if you're on the right side of the news.

As with all methods of Forex trading, there must be some negatives, are:

Because the markets are extremely volatile after the announcement of major news Forex, most brokers increase their spreads, which can affect your trades.

Glide is probable during periods of significant news, where it happens because of the rapid movements of the market, so when you place a request, it is possible to get a different price.

Big market moves do not usually occur in one direction, where it is possible that the market swings up and down before the participants to agree on the best direction.

Although this includes many opportunities to make profits, but it is not easy. You must have a good understanding of the economic and things that you know and how to be a reaction to some of the variables in the event of certain things. And this is not easy.

According to the news trading is not considered difficult only because of the need to understand the economic issues, but because there are a lot of Forex news announcements on a daily basis, and if you want to interact with all of them, you will fall certainly in puzzled. In the following there is a list of some of the news reports that are worth trading based on them.

The United States is the most important player in the market, and as a start, you have to rely on the news issued by only.

News of U.S. inflation and central bank news is very important and plays an important role in the Forex market.

Information relating to war and natural disasters move markets significantly, but not as much as the central bank news.

Follow the movements of the stock market.

When you trade according to the basis of Forex, you should have your focus on the most trading currencies.

The pairs that you need to be tracked are: EUR / USD, GBP / USD, USD / JPY, the U.S. dollar / Canadian dollar, Australian dollar / U.S. dollar.

In the end, you need to pay attention to the following points:

When you have a directional bias, you expect that the price moves in a certain direction, and your requests will already exist. It's always good to understand the reasons behind the market moves towards a particular when issuing the Forex News. When you have a unidirectional bias, trend of prices does not be an important for you. And you are ready to move with the market.