We all know that high impact news release creates a high
level of market volatility. During such time the professional traders make a
huge amount of money. But sadly the novice traders don’t know how to trade the
high impact news data. They place a trade without having any precise trading
system and loses their trading capital. News trading is one of the most
difficult tasks in the financial market. But if you can master it, you can
easily make huge money by trading the news. In the eyes of the trained
professional high impact news are often considered as the most powerful price
driving catalyst in the forex market. There are some certain guidelines to use
the fundamental factors of the market. If you can follow this guideline you can
also make a huge profit just like the professional traders.
Know the severity of
Every day many news has been released in the global market.
This is the major cause of high level of market volatility in the currency
pairs. Most of the new traders don’t know the severity of the high impact news
release. For instance, if you expect the same impact from the news average
hourly income and U.S rate hike decision, you are making a big mistake. Every
news is different with its own action. So being a currency trader it’s your
duty to learn about the nature of this market. Learning the basic news of the
market is really easy. It will hardly take one month to understand the impact
of different news on the currency market. Once you have developed a basic idea
about this market its time for you to demo trade the market. Demo trading is
one of the easiest ways to develop your trading skills. It allows the traders
to get a unique experience of the live market without losing any real money.
fundamental analysis with your technical data
No one can make a huge profit based on the fundamental
analysis only. Even if you look at the profitable traders at the Juno trading community you will understand that fundamental analysis
works best when is being used in the technical analysis. So before you start
learning fundamental analysis, you must learn the technical analysis. Technical
analysis is nothing but the study of the price movement in the different time
frame. It allows the traders to find profitable trades in the market with the
high level of precision. But you have to understand that technical analysis is
just a part of your trading strategy. It will never help you to make money in
the long run. You have synchronized your fundamental analysis skill with the
technical trading system to ride the long-term market trend. Both types of
market analysis are required to make consistent profit from the market.
Importance of proper
Money management is very crucial to your trading success.
You have to learn trade management skill so that you can easily embrace losing
trades. You might try hard to find the Holy Grail in forex market but
eventually, you will fail. But if you look from a different angle, you will
understand perfect risk management factor is the only Holy Grail in the forex
market. When you place a trade assess the associated risk factors. Never take
too much risk even though you have the perfect trade setups. Always focus on
the conservative method of trading. It’s better to stay on the sideline rather
than losing money on poor quality trade execution.
Develop a simple
Every trader needs a trading system to make money. If you
want to consider trading as your full-time profession you have to create a
unique trading system. Remember to keep things simple in currency trading. The
complex trading system will make things complicated and it will become hard for
you to make money. Follow a simple method to trade this market.