Publication of important economic occasions and news, as a rule, gives rise to high volatility in the foreign exchange market. Thoughtful approach to the trade and precise observance of the rules at this moment will give you a lot of profitable transactions in a month.

For all the time as there is the Forex market it was created thousands of different strategies. However, the Forex market is chaotic, dynamic, and constancy is alien to it. Devised strategies either did not make profit at all or stopped working after some time of using them. After all, sooner or later any strategy will fail and should be upgraded. But from numerous good Forex strategies we can find more than a dozen generic trading systems that will work across hundreds of years. It is interesting – what are these strategies? This is the tactics of the channel, trading on the break, trading on the news, etc. Now we will look through the trade on the news.

Its meaning is effecting specific bargains during the release of economic news that are very important. It is important news! The strategy is based on strong price movements. Very important news – is the better part of news referred to the U.S. and published in 13:00 – 16:30 GMT. There is some belated news in the 17:15 – 18:15 GMT.

There are the news arising the great interest: about interest rate changes of the world’s leading banks: ECB, Bank of England and the U.S. Federal Reserve; GDP, Non-Farm Payrolls – are indicators of the state unemployment outside the agricultural sector U.S., data about the trade balance, data about inflation, as they cause rapid price movement. Time of the announcement of above indicators is known beforehand. 99% of the price will move sharply in some side. It is very hard to predict the direction of price movement after the announcement of news.

Regulations of strategy “Trade on the news”:

1. Do not play with a large lot.

Undoubtedly, Money Management is vital to be respected always, and when trading on the news especially. If you are trading 1 / 10 part of your deposit, lower the risk to 1 / 15 or higher. And if you are trading with only 1% of the deposit, then nothing needs to be changed because this is a permissible minimum.

2. Do not open the orders before announcement of the news.

Too early opening of the position faces losses. Prior to the announcement of data keep yourself in the hands and do not be in a hurry.

3) Set your orders correctly.

Be ready about 15 minutes before the announcement of the news: set at once 2 pending orders from the current price: Buy-stop and Sell-stop with indent 30-35 above and below the current price of the desired currency pair. Stop-loss must be short. Determine by yourself take-profit and Traling-stop. Thus, once you envisage 2 variants of events. The most important thing – is not to set orders too close to the current price. Before the date of declaration of the news it will certainly be small oscillations of the price in both directions. And if your pending orders are nearer than 20 points from the current price, they can be caught by market fluctuations. Further – we are waiting for the announcement of news. If in 1-2 minutes after the publication of data, no order has worked, we delete them. And if one order is opened, then delete the second instantly and watch how profit is increasing.

Strategy of “trading on the news” is not new. You may safely apply it, because it is time-tested. Only it is necessarily to follow the basic recommendations when working on this strategy.

Currently people are looking for additional or even primary sources of income as never. World economy is still in tough condition, and to find a well-paid job is not that easy task. And forex is one of the ways to make some money. To trade successfully one has to be aware of events on the market, so live forex news is of great help here. Those who don’t know where to get fx news can take advantage of the web network. Just type “forex news trading“, for example, in Google or other search engine and you will get many news sources to choose from.