Among numerous types that a forex trader can choose, there is one that relies on news release. As the name suggests, they capitalize upon the always updating trends on the markets.
A news release trader owns a massive advantage thanks to always knowing the latest issues. Accordingly, issues indicate notable events on the market, either after or before they happen.
What’s more beneficial from being this type of trader is that anyone can be one. There exists no specifically exclusive skill, or technical skill, that someone has to exhaustively master.
Despite everything, the above-mentioned statement does not justify that such traders should require no specific strategies. Still there are strategies and factors that this type of traders should follow.
However, this article won’t elaborate the technical, forex trading strategies. Instead, this will involve the non-technical but practical tips and strategies that a news release forex trader can follow.
Also Read: ‘Buy the Rumor, Sell the News’ Forex Trading Strategy
Rely on News from Numerous Sources
In following certain news, it is better to rely on various media to acquire the most accurate updates on the conditions. That said, it is always best to allow notifications from various reputable news sources, specifically pertaining to forex.
However, you should also get notified about major events happening all around the globe, whether it is pertaining to economy or not at first. This is because major events mostly affect exchange rates of currencies (remember coronavirus outbreak).
Subscribe to Media’s Newsletters
News release traders better keep tracks on what’s going on in the market because any events might heavily contribute to the market condition in the following month.
For that reason, it is always wise to rely on the assistance on newsletters. Media’s newsletters usually cover up major, notable events during a month, meaning that you won’t lose tracks of possible important updates.
Gamble on News Reversal
When a specifically crucial news pops up, markets and trends tend to go in one direction. This is where a price overreaction may occur.
Following the overreaction, there usually prevails a rising trade rates followed by a sudden, sharp price to the opposite direction. Though it is a gamble, many news release traders suggest that this is actually the right time to trade.
Also Read: Trading News Event in Forex Market