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Forex news
Forex news refers to the economic and political news that affect the exchange rates. FX traders can use the news as an important factor in their decision-making and earn more profits. But for this, they need to have a suitable strategy and proper methods of analysis. In this article, we intend to teach you some key points in this regard.
One of the most important points in trading on forex news is choosing the appropriate news. Not all news have an impact on the forex market and some of them are more important than others. To identify the important news, you can use the economic calendar.
The economic calendar is a tool that shows the time and content of the news and also the level of impact they have using different colors. Usually, the news that are shown in red have the most impact and can cause severe fluctuations in the market. For example, the news related to changes in interest rates, inflation, economic growth, unemployment and international trade are among the important news.
Therefore, you should pay more attention to these news. Another point that you should consider is that you should know what effect the news have on different currencies. For this, you should be familiar with the basic concepts such as base currency and quote currency, demand and supply, strong and weak currency.
The positive news brings a positive trend with it.
Generally, if positive news is published about a country, the currency of that country becomes stronger and vice versa. For example, if the interest rate of a country increases, the currency of that country becomes more attractive and the demand for it increases. As a result, the currency of that country gains more value compared to other currencies.
Therefore, you should know which currency is affected by the news and which currency pair to choose for trading. The third and final point is that you should know when to enter the trade. For this, you should be familiar with different methods of trading on news. One of the popular methods is the forex news trading strategy. This strategy works on the principle that if the news is better than expected, the base currency is bought and if the news is worse than expected, the base currency is sold.
To implement this strategy, you should determine two levels of support and resistance on the chart and enter the trade when these levels are broken. This strategy can lead to high profits but also has high risk. Therefore, you should use risk management to adjust your trade volume and the location of your stop loss and take profit.
Where to follow forex news?
This is a question that many forex traders have. Forex news refers to the news that affect the exchange rates and the financial markets. To follow forex news, you can use different sources.
Some of these sources are:
Forex news websites:
These websites provide specialized news and analysis related to the forex market. Some of the best forex news websites are: FXStreet, DailyFX, Forex Factory, ForexLive and Investing.com. These websites publish news in real-time, daily, weekly and monthly and also use tools such as economic calendar, charts, indicators and webinars to help traders.
Social media:
Social media such as Twitter, Instagram, Telegram, blogs and podcasts can also be a good source for following forex news. In these media, you can see the opinions, predictions, experiences and strategies of professional and reputable traders. Some of these traders are: Kathy Lien, Boris Schlossberg, Ashraf Laidi, Nial Fuller and James Stanley.
TV and radio networks:
TV and radio networks can also be a useful source for following forex news. These networks cover the news 24 hours a day and seven days a week and use interviews, reports, programs and documentaries to provide information. Some of these networks are: CNBC, Bloomberg, BBC and CNN.
Organizing news
Organizing news in a timeline is a helpful method for following the important and influential events on the forex market. To do this, you can follow these steps:
Use an economic calendar that shows the news in real-time, daily, weekly and monthly.You can use forex news websites such as FXStreet or DailyFX to access the economic calendar.
Categorize the news based on their impact on the forex market. Usually, the news that are marked with red color have the most impact and can cause severe market fluctuations. For example, the news related to interest rate changes, inflation, economic growth, unemployment and international trade are among the important news.
Filter the news based on the currencies that they affect. For this, you need to know which news makes a currency stronger or weaker and which currency pair to choose for trading.
Generally, if positive news is published about a country, its currency becomes stronger and vice versa. Put the news in a timeline that shows the time and content of them. You can use a software like this to create an online timeline. In this timeline, you should write the news briefly and with different colors based on their impact. You should also provide explanations about the effect of the news on the related currencies. With this method, you can organize the news in your timeline and use them as an important factor in your decision making.
