When trading stocks, the highest volatility period is the open of the US markets. That’s why I teach the traders from LFT trading school, how to understand the characteristics of each phase. Before starting I just want to tell you that this is not about straddling, nor about put pending orders before news releases, nor about trading without a stop loss.

Coverage of all G10 currencies plus the top emerging market pairs. 1) Access to highly specific news related to 13 currencies – AUD, CAD, CHF, CNY, EUR, GBP, HKD JPY, MYR, RUB, SGD, THB and USD. dotbig investments With BOJ head Kuroda reaffirming their ultra-easy policy stance, will the yen be in for more losses? Our gain and loss percentage calculator quickly tells you the percentage of your account balance that you have won or lost. From basic trading terms to trading jargon, you can find the explanation for a long list of trading terms here.

Foreign Exchange News Results

These currencies are often referred to as resource currencies. Prices of commodities that affect these currencies can be influenced by issues affecting supply and demand. dotbig broker In order to read news events, you should familiarise yourself with economic indicators​​, which are macroeconomic factors that have an impact on all financial markets, whether it be forex, shares or indices. dotbig ltd These can include changes to interest rates, inflation, unemployment levels or retail income for a specific country and these all have a significant effect on the financial markets and overall state of the economy.

This will show you that you are a beast trading some part of the day and that you suck, trading another time of the day. And I’ll also teach you how you can find what time of the day YOU should trade and it’s more profitable for you to trade. But if you don’t have a good trading strategy, you’ll just end up losing. dotbig sign in If you know what you are doing, you can make a lot of money during a short amount of time.

Preparing To Trade News Events In Forex

If the BoE follows in the footsteps of the Fed and ECB and policymakers decide on a larger than conventional rate rise of 50 basis points, this could be enough to keep sterling elevated and clock further gains. The issue for the pound is that money markets are pricing this in as the most likely scenario so if the BoE continues with its more cautious approach of 25-basis point hikes, this could lead to further losses for the pound. Considering the latest economic data has been mixed, it’s relatively easy to justify either move. dotbig contacts On the hawkish side though, the labour market remains tight, consumer inflation came in above expectations in June and the UK energy price cap in October is expected to exceed 50% now. Moreover, both candidates fighting to become the next UK PM are putting pressure on the BoE to act more aggressively with rate hikes. Nevertheless, if the BoE was to "under-deliver", sterling could slip, pushing up import prices and inflation further.

  • That’s right, during these periods the markets get enough momentum to give clear signals and great trading opportunities on low time frames.
  • Traders will focus on the Reserve Bank of India’s monetary policy review next week.
  • Once you figure out how a report will affect a currency, you can prepare for a live news trade.
  • Speculation and pricing related to demand is mainly influenced by many of the same major news releases noted above, plus commodity inventory reports and outlooks.
  • For any questions regarding our solutions and services, our customer service representatives are here to help.
  • You may want to consider trying it in on a demo account first to get a reasonably good simulation.

The same happens when trading stocks, during the open of the markets. The issue that you will face with fixed spread brokers is that sometimes you get price slippage, or a requote.

Technical Outlook: Dollar Weakens On Less Hawkish Fed

Every journey starts with a single step and this is true of trend reversals as well. dotbig forex An economic announcement is rarely enough to quickly change a medium-term trend, but how the market reacts to surprises can give the first clue that sentiment is starting to shift. This offers traders an opportunity to open positions at the very start of a new trend. dotbig Read more about using fundamental analysis in the consideration of external factors as part of your news trading strategy. "With the Fed having stuck to a 75 bps hike and concerns of a global recession still looming, the RBI may announce a modest bps increase in the repo rate next week," a senior trader at a private bank said. Foreign portfolio and institutional investors have been net sellers of Indian assets for several months, pushing the rupee to its lifetime lows. During July, the currency hit over 80 per dollar for the first time ever, and the rupee is down over 7 per cent since the start of the year when it was changing hands at 74 against the greenback.

Forex News Trading Predictions

It may be more opportune to wait to open new positions after news events have taken place, and then see if the reason for the trade is still valid. dotbig company Give preference to trading high impact news releases on forex. On this example, I’m setting a filter so that my growing curve is formed just by the trades I took during London session news releases. LFT trading school has a set of tools that help traders to identify which phase of the day they perform better. One problem with news trading is that every ​forex broker has a different policy on how they handle trading during volatile news time. testimonials Some brokers have what is called a variable spread and some have a fixed spread.

Forex News Pro

Therefore, you will need to make quick judgements on how to trade the announcement. However, this morning we’ve already seen data from Germany revealing retail sales are in retreat because of inflationary pressures due to a plunge in consumer confidence and demand. Throughout the week, apart from Tuesday, we have important German data dropping in first thing such as trade balance, new orders and production in industry to assess how severe the current economic slowdown could be. dotbig website Despite the euro’s near 3% rally in two weeks, EUR/USD is still firmly stuck in a long-term downtrend and well below its long-term moving averages. However, if a company releases a report with considerably lower financials than expected, this can cause a rally for traders to short the stock as its value is decreasing. Traders can perform company analysis before deciding whether to invest in a stock. This includes analysing its growth rate potential, as well as any potential legal, political or insolvency risks.

For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading.

In truth and in fact, and as ALEXANDRE well knew, EminiFX did not earn 5% weekly returns for its investors. ALEXANDRE did not even invest the vast majority of investor funds entrusted to him, and ALEXANDRE sustained over $6 million in losses on the limited portion of funds that he did invest, which he did not disclose to his investors. Instead of using investors’ funds as he had promised, ALEXANDRE misdirected at least approximately $14,700,000 to his personal bank account and failed to invest the vast majority of the investors’ funds. For example, ALEXANDRE used $155,000 in investor funds to purchase a BMW car for himself and spent an additional $13,000 of investor funds on car payments, including to Mercedes Benz.