Where the trader can take advantage of the news by placing pending orders before the news is released, the platform automatically activates the orders at the previously specified levels even under volatile market conditions, but it is preferable to stay in front of the trading platform during the news release.
Some beginners make a common mistake, which is trying to trade as soon as the news is released. In this case, the trader will face a huge spread in the spread rates, which may reach irrational numbers and cause big losses.
Some traders take action for their transactions after a period of the news’s release, and sometimes the main reaction to the news issued varies during the first few minutes following the news’s release, unless the news is very important. Entering the market long after the news is released and with the start of these regressive movements is not the scenario. Perfect for sure.
The impact of the news on the forex market cannot be ignored, regardless of the strategy followed. The trader’s deals will be affected by it. It is necessary to monitor all the news and take the necessary decisions. Trading on the news achieves huge profit or losses in a very short time, i.e. within minutes of announcing the news. Emotions during the news Fearful traders may fail to act and make the right trading choices because they surrender themselves to an emotional reaction rather than to smart, thoughtful decisions.
Traders must understand that not all events are capable of moving the market, sometimes what is driven by the supply and demand strategy is determined by the traders present in it, the unimportant news reports may not have a sufficient impact on changing the prevailing trend in the markets.
the interest rate.
Purchasing Managers Index.
the consumer price index.
the gross domestic product.
Elections and wars.
Federal open market meeting.