When watching the news, what are the particular things that you should watch out for? There are many triggers, actually. But one of the few things that could affect the market are news about changes in the interest rate, inflation, trade balance, unemployment, retail sales, and industrial production. News indicating the result of certain surveys could affect the way the market behaves as well. Be sure to watch out for them too. Research firms usually conduct market surveys to determine the sentiment and the current conditions of the business sector, the consumers, and the manufacturers.
How to Trade Forex News
There are two ways to trade Forex news and these are the directional bias strategy and the non-directional bias strategy. The directional bias tells traders to buy rumors and sell news. Days before a particular news comes out, there will be market speculations. Many traders buy according to these speculations. However, when the actual news item comes out and the accurate figures are released, that’s when they sell. This strategy is called the directional bias strategy.
The non-directional bias strategy pertains to merely focusing on the essence of the big news. When the big news hit, you won’t make or base your decisions on the speculations. You simply buy depending on the news, without considering whether the market price will go up or down. The reason why the strategy is called non-directional bias is because you’ll be putting your money on both sides of the trade. This way, whichever direction the market moves, you’ve got investments in both places.
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While trading news is a lucrative way to earn with Forex trading, there are dangers associated with it too. Always keep in mind that the market can get very volatile. Widening your spread could hurt your investments
