Trading News Strategy

Trading the News Strategy The market is influenced by news events and by learning how to take advantage of these events you can improve your profits and prevent expensive mistakes. Many beginner Forex traders come to recognize the significance of news events only after seeing a perfectly profitable trade becomes a loss in a few minutes, while skilled Forex traders foresee the move and add to their daily gains in a regular manner.  Economic news reports usually initiate solid short-term moves in the assets markets which could create trading opportunities for traders. Announcements about corporate profits, a change in management, rumors of a merger, are all events which could result in a corporate entity’s share price to move significantly up or down. Interest rates, unemployment and export rates, or the central bank’s policy changes, can lead to a serious change of an exchange rate. So how can you trade this strategy? simply follow the news closely and act fast. A good news event  is a buy signal while a bad news event is a sell signal. observe the data released from ECONOMIC CALENDAR and trade accordingly