FOREX NEWS TRADING

FOREX NEWS TRADING (Trading with Forex News) 

In the trade, especially the Forex Trading or Currency's (FX) trading, there are several popular techniques, such as hedging / locking, Scalping, Elliot Wave, Averaging, Martingale, Trade Balance, Carry Trade, Technical Analysis, Fundamental Analysis, and so on.

We did not expound on the trading technique, but we only discuss a trading technique that we have applied in person for a couple of years and proven to work well, it is a technique Fundamental Analysis Techniques utilizing a reading on Economic Calendar Forex News.

We like the fundamentals of this technique, since most of the movements in the forex market is driven by the influence of news, and NOT by a technical analysis. You may observe the effect of the news on the movement in the market.

How does the application of the Fundamental techniques?

Before applying this method, then you must first have a strong foundation in forex, learn forex guidelines essentially first and calculation formulas. Then follow the simple sequence of steps below Enough CAREFULLY, namely: (Must Sort!)
Choose the right broker, and credible. Because this technique requires a qualified broker and safe. Because news is a very fast movement and dynamic, so need a good broker.

Open a web information contained forex economic calendar of international (economic calendar), we usually use the personal information of the comparison of the 3 sites, namely in: Beritaforex.com, forexfactory.com / calendar.php and dailyfx.com / calendar. 3 Why this site? because these sites are experience we have the most accurate value for its analysis than other economists.

See today's date from each of the economic calendar, and match. (Time Clocks also make no mistake! Their default clock is the clock time New York in the United States, which is where different about 11-12 hours later than EDT or GMT +7 hours in Indonesia,ect). If you read one hour, then it could be fatal, because the schedule of trading hours you can go wrong all the reading. To match with the Indonesian hours ago timer pm can be compared with the clock on the economic calendar beritaforex.com or the conversion clock on time and date.

Look at the news that you want to trade in its currency, example: news UK (united kingdom) for currency is GBP (GBP / USD), or American news / U.S. for all pairs associated with the USD (GBP / USD, EUR / USD, USD / JPY, USD / CHF, etc). Should avoid trade with Cross Rate currency in the application of this technique.

Choose High Impact news only, which is marked with red color or 3x Marked , according to the currency you want the trade in. CAUTION! The minimum in the web 2 High Impact all have to conform (or red exclamation 3x), because if not, then do not trade on the news hour. Best if all three had a web news is conform all High. 

Additional Note: for class news medium or low impact, it can also affect SOMETIMES (although very rarely), depending on the result of the news as well.

High Impact Match news of the three economic calendar, whether it has the same value or not Forecast. When forecastnya different values, in the sense opposite to each other, then avoid trade on the news. But if the value forecastnya more or less the same direction (the direction of the directors estimate the same) then it may choose in the news. (If you want to actually be enforced Trade also, just usually not optimal, and also everything depends also on how the results Actualnya later)

When in one of the news sites do not list or the clock's time Tentative, or that there is no forecast and previousnya, then you should not trade in the current hour.

Observe the Actual column, and Previousnya Forecast (Forecast that mean estimates of news, it is the result of Previous news in the previous period)
Check also, is there any other news at the same hour (or adjacent) to the currency, and whether the results forecastnya conflicting or not the news with each other? if the contrary, then please be wary with the news that the adjacent hour.

When all indicators above check list has been valid all, then wait until the news was announced in the time slot. (You may monitor the news through services such as Bloomberg.tv, Reuters.com, or CNBC)

After the news came out, then the economic calendar Refreshlah at each site to bring its Actual values ​​and compared. (If the result of the news of no value actualnya then do not trade).
Compare the results Actual vs. Forecast vs. the Previousnya. When the value of OUT OF THE BOUNDARY BETWEEN Actualnya values ​​and Forecast Previousnya then be followed to start trading on the news. (Observe also revision if any)

If actualnya results better than forecast and previousnya (marked in green), then the value of the currency normally be strengthened, as well as otherwise weakened. (Remember also point no.12 above).
The green color in the actual meaning better, while red means worse than previousnya, but you have to pay attention to the points above for decision-making of its order Buy or Sell.

Check also if there are any other news (for the currency) at the same hour or adjacent time, which results actualnya conflicting with earlier news? if no, then do not trade in the first hour, because the movement will likely Zig Zag or unexpected.

ALERT also Revision of Previousnya happened, because it was also very influential (if revision is not in line with the actual value of the market will likely Zig Zag)

When you have Valid all then you should trade, BUT do not immediately open position when the news was announced, but wait a few minutes before the OP. Because if you are directly in the current OP-minute news announced that the first movement is often false and deceptive movements, and besides that your order will certainly also difficult to enter the market as a result of factors quota busy or demand / supplynya not available in the market.

Always controll Money Management Risk Management or her, as this is the key to your trading success. (Our suggestion Risk is 3%, or at max 5%)
TP and SL should be balanced, or TP greater than SL was better. And TP / SL should be above 30 pips to 100 pips, or if the 5-digit brokers that applying the TP and SL is above its 300 to 1000 pips. (Risk-reward must be proportional).

Do not trade without a SL or playing resistant to withstand floating, because the risk of all. Remember always that chance opportunities in the next day is still a lot.
You may also add trailing stops 20 pips (or 200 pips for 5 digits brokers) in applying this technique.

Do not use such pending orders Buy Stop / Sell Stop (or technique of trapping or traps) in using this technique, because the risk to price slippage or missed. 99% SURE slippage.

Before applying this technique, we suggest that you MUST practice first on a demo account until completely proficient before plunging into a real account. Because the effect of the news that does not get used can lead to shock, given the movement is often very rapid and unpredictable. In addition you also contribute to determine the experience.
                                                          (salam bijak independent fx)