For all the time of existing of Forex it was invented and written about thousands of various strategies. Their authors cried in one voice and argued that, finally, after a long period of time they have found the truth on Forex. But in the end it was only just loud cheers, and nothing more. Coined strategies either did not work absolutely, or stopped working after prolonged use. It is clear. The Forex market is chaotic, volatile, and nothing permanent is alien to it. Efficient strategies will fail some time or other and they will have to be upgraded. But everything is not as amiss as it seems. Of all the thousands of Forex strategies there are ten all-purpose strategies that will exist even in hundreds of years. What are these strategies?

In this article we will talk about trading on the news. This is one of the most common Forex strategies. Its core is to strike some bargains directly during the publication of important economic news. I emphasize – important news, but not every ones. The strategy is based still on the strong market movements, or otherwise it would simply not make sense. Important news – are the better part of news concerning the U.S. at 13:00 – 16:30 GMT. There may be more later news, about at 17:15 – 18:15 GMT. The news about changes of interest rates are the most interesting and popular, as they promise very large price movements.

In order to successfully trade on the news, you must follow these common rules:

1) Do not risk a big lot!

Money management has to be always complied, but speculation on the news is even better. If you are using in the trade 1/10 part of your deposit, then it is reasonably to knock off the risk to 1/15 or higher. Well, if you are trading with only 1% of the money, then you don’t have to change anything, you will not be able to change anything, since it is already minimum.

2) Do not open the position before the news!

Too early opening of position threatens with losses. Yes, thanks to some analysts, you know what you can expect from the news. It is not difficult to know about forecasts. But you are not aware of whether they will come true or not, and you no one may give a guarantee to you. Therefore, opening your position before the news, you take the risks of flying blind. It will be well if you can guess the direction. And if not? Unplanned losses? So before the announcement of news be master of yourself and do not hurry. Surely, you can object, they say, when the time comes around and the data is announced, it will be too late. That is true, but you canprepare in advance. How to do it? Read the following paragraph…

3) Arrange the orders correctly!

To avoid any unnecessary mistakes described in the paragraph 2, do the following:

Prior to the publication of the news, about 15 minutes prepare for it. Set two orders from the current price right away: one for opening a position to buy, the other – to sell. Thus, once you provide 2 variants of events. The most significant thing – is not to set orders too close to the present price. Prior to announcing the data on news, it will necessarily be small jerks in both parties. Therefore, if the orders for open positions will be just 20 points from the current prices, they are simply will be hooked up with market fluctuations. You do not want to open a position in the contrary direction? So you have to put orders to limit losses. You have to place them in two exemplars.

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This is important, don’t forget that we live in the world where knowledge makes life easier.

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