Those amongst you who are looking to stay ahead of the game, and more reliably anticipate changes in the market, will want to make sure you stay abreast of the latest press releases and news events.
Media outlets, pundits, and the like can have a profound effect on price action market volatility, but the timing and location of releases can also have dramatic influence on retail traders such as Forex.Hexun and Forex.CNFOL.
Add These Forex News Portals to Your Bookmarks List
Other popular financial news portals include:
These sites will all provide you with invaluable market and economic insights that traders may apply to their trading on a frequent basis.
The Importance of Following the News
The fact that the Forex markets are open 24 hours a day means that traders have their work cut out for them if they want to trade ‘on the news’.
Trading news is usually a short-term approach to trading, but it can be an incredibly powerful tool when combined with an existing arsenal of indicators and analytical methods.
A sensible approach is to watch out for the press releases related to whichever assets the trader is currently trading so that they are not trying to digest every single item of news.
Important factors to be mindful of include:
• Interest rate adjustments;
• Business, consumer, and manufacturing surveys;
• Unemployment figures;
• Trade balances; and
• Retail sales
Traders should also look for releases which may directly or indirectly affect current assets, such as those related to other instruments which may have an inverse relationship to one of the currencies trading. For example, gold price is often inversely related to the US dollar, so any news announcements on gold may also impact the USD price.
Trading the News
Committing to a trade in response to or in anticipation of a press release can be an art and a science, and a difficult one to master at that.
A simple and common approach to trading the news may be to identify price consolidation prior to a significant press release. After the release traders may then trade the subsequent breakout.
Although this is a relatively effective approach, market volatility may be taken into consideration because it is during these breakout periods that wild price fluctuations may quickly cause trades to hit their stop losses.
Even if the trader made a directionally correct trade, they may still falter at the hands of volatility or even a lack of momentum!
For this reason, traders may consider the time frame they are trading in, while using indicators to assess potential volatility.
Source:: Top Forex News Portals in China