Trading major news is more like dealing with the fire. The naive investors in Australia always try to trade the major news since it gives them a unique opportunity to make a huge profit. Sadly, it always loses a big portion of their trading capital. If you look at the experienced traders, you will notice they are easily executing high-quality trades without having any issues. Do you know how to they execute such trades? The answer lies within the skills of the professional traders. The professional traders are always one step ahead and they know the exact way to place the trade with low risk. You don’t have to follow an aggressive strategy to earn more money. Let’s learn the perfect way to trade the major news.
Impact of the news
The market becomes extremely volatile in the event of major news. The traders want to utilize such volatility so that they can make a big profit. But making a big profit in the Forex market is a very big challenge. You need to understand how volatility can hunt the stop loss. Those who are new at trading should use the demo or practice account to understand the volatile condition of the market. Never think you can bring change to your life without having strong control over your emotions. You might feel that you know everything about news trading by using the demo account. But in reality, you have a lot to learn. Instead of trading the news in the real market, try to make a consistent profit in the demo environment for at least six months. To be honest, you need to develop the skills in the demo environment and the time frame should never be your concern.
Learn from your mistakes
As a an active participants of the CFD trading industry, you need to learn from your mistakes. Mistakes are always appreciated as long as you learn. The naïve traders don’t understand why they should trade the market in the demo environment. Demo accounts offer the perfect learning curve to the retail traders. So, if you want to make a big profit, you need to take advantage of the demo account. Think about the long term goals so that you can make a decent profit. Since you will be trading the major news, think about the faults in your trading system. Most of the time, it’s hard to find the potential trade setups since the traders can’t filter out the quality trades. You don’t have to push things to the next level to find the mistakes in your system. Focus on your strategy and trade with discipline.
Stop trading the press confidence
Trading the press conference is only for traders who have years of experience. Being a new participant in this market, if you start executing the trades during the press conference you might even blow up the trading account. Think about the long term goals and try to improve your skills as a currency trader. The spread might become insanely big and it might result in heavy loss. Most of the time, the market exhibits choppy movement during such press conference and it’s very hard to trade the market with low risk. Think like the professional traders so that you can place the trade with managed risk. Stop focus on profit factors and try to develop your news trading strategy conservatively.
Trade with a 1% risk
News trading is one of the most difficult tasks for Forex traders. Even after executing the trades with the highest level of quality, it’s really hard to find the potential trades. Instead of taking more than 2% risk, lower the risk factors to 1%. Those who are trading with a big account should take less than 1% risk. Always think about the safety of your trading capital to trade the major news. And stop trading for the day if you lose a trade.
