When talking about Forex trading strategy, we always mean the certain actions of a trader in a certain situation in Forex market. Trading according to the economical and financial news is a part of the fundamental analysis of the market and is very popular in Forex trading. According to this strategy a trader carefully watches the economical events and starts trading when a good situation appears. Many educational materials recommend start Forex trading from the fundamental analysis of the Forex market. Any change in Interest rates, retail sales and other important economical data may have a great influence on the relevant currency rates and cause spontaneous trends. Such moments are the Golden Mine for the fundamental traders, as they give a short opportunity to earn big profit. Catching this moment may increase your investment in 50% during a short period of time from few minutes to few hours!
Most of the brokers offer an economic calendar that shows the coming economical and financial events in the certain countries. If after the announcement the rate was much different from the expected one, this is a good potential for the big price movements in the next couple of hours. The trend may start at the very moment of the announcement or few minutes later.
The speeches of the world economical leaders and ECB meetings also may have a big influence on the market. Many traders may also see a lot of good opportunities for making profits during such events. Do not take a trading decision once the meeting or a speech has started. The thing is that during such events the performance of the influential persons and experts in the field of economics begins to shake the Forex market. This is a very risky moment when the bulls and bears start struggling and the market doesn’t take a certain direction yet. Be calm and don’t succumb to the temptation of easy profits as it can bring you significant losses. Wait for a specific final data.
If the final data was far from expected it is a great potential for a strong trend to take place. Usually if the change of the announced rate was worse than expected, the rate of the national currency must go down. If the data was better than expected, then the upward trend is going to take place. Once you indentify the starting trend, you can enter the market. When opening a position, don’t risk a significant part of your balance. Sometimes the market is very unpredictable and other factors may influence it at the same time. Try to minimize your risks and carefully watch your position once you open it. Remember that a trend may last for a very short time and suddenly change its direction.
If the trend continues your direction and your open position starts bringing you profit, we recommend you to use a technique of profit fixation. It can be achieved by moving the stop-loss up to the direction of the price change. You can keep the stop-loss order on about 20 pips lower/higher from the current rate in the profit area. This strategy is very effective during the trend trading and guarantees a certain minimum profit on each open position.
Source: Forexarticlecollection.com
Most of the brokers offer an economic calendar that shows the coming economical and financial events in the certain countries. If after the announcement the rate was much different from the expected one, this is a good potential for the big price movements in the next couple of hours. The trend may start at the very moment of the announcement or few minutes later.
The speeches of the world economical leaders and ECB meetings also may have a big influence on the market. Many traders may also see a lot of good opportunities for making profits during such events. Do not take a trading decision once the meeting or a speech has started. The thing is that during such events the performance of the influential persons and experts in the field of economics begins to shake the Forex market. This is a very risky moment when the bulls and bears start struggling and the market doesn’t take a certain direction yet. Be calm and don’t succumb to the temptation of easy profits as it can bring you significant losses. Wait for a specific final data.
If the final data was far from expected it is a great potential for a strong trend to take place. Usually if the change of the announced rate was worse than expected, the rate of the national currency must go down. If the data was better than expected, then the upward trend is going to take place. Once you indentify the starting trend, you can enter the market. When opening a position, don’t risk a significant part of your balance. Sometimes the market is very unpredictable and other factors may influence it at the same time. Try to minimize your risks and carefully watch your position once you open it. Remember that a trend may last for a very short time and suddenly change its direction.
If the trend continues your direction and your open position starts bringing you profit, we recommend you to use a technique of profit fixation. It can be achieved by moving the stop-loss up to the direction of the price change. You can keep the stop-loss order on about 20 pips lower/higher from the current rate in the profit area. This strategy is very effective during the trend trading and guarantees a certain minimum profit on each open position.
Source: Forexarticlecollection.com
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