Figures from the Fed are in the News and in 1 minute you can gain 2000 euro. The data on European unemployment is announced and in 10 minutes you can gain 5000 €.
Consumer confidence fell to 10 points in the last quarter and you can gain 3000 € in 30 minutes.
Welcome to trading on the News on Forex. A great way to earn lot of money in no time.
Obviously, there are also risks. With the News you can also lose your money. Fortunately, with Forex you never lose a lot, the most you lose is what you have put into trade.
What is trading on the News and why is it so effective?
Trading on the News: there are just a few people who do it … and they often do it wrong!
I have noticed that even those who have done trading with Forex for long time, tend to avoid the moment when the News is released. “Too much confusion, too many jumps, we are waiting for the market to stabilize”.
They are traders who use technical analysis to decide how to trade based on graphs. So, they are disturbed by the peaks that occur in the currency market when News is released.
You can leave them to the study of graphs and dedicate yourself to trading on the News. Some traders use this trading strategy as their only one, others as an additional strategy to the classical analysis.
I tend to use it a lot because I am someone who likes action. I like to think about what will happen based on economic data that I find online. In fact, on a site like Forexfactory you can find all the information you need to do trading based on the News … and all for free.
Ebook reasons to trade with forex: Read reasons to trade with Forex and discover information only few people know
How to trade on the News
I could talk for hours about this system, I always use it (it is my main trading technique on Forex). In fact, trading on the News is a central part of the AB Forex seminar and in Italy, I am the only one teaching it.
I want to give you some tips to start testing this method (I recommend, initially virtually).
First of all: there are at least 8 currency pairs that are worth following, every day there are from 5 to 10 pieces of news on which you can trade. It would take pretty much the whole day to follow the market.
And then, what would the beauty of Forex be if it made you work all day? Do not do it. You do not have to follow all the News.
My advice is to follow the News from the USA. This is because the dollar is involved in many currency pairs and therefore influences Forex.
In short, when Bernanke speaks, it is time to make money!
From the News that you follow from the USA, here are the 7 most important factors:
● Employment Growth
● Interest Rate
● Trade Balance
● Gross Domestic Product
● Retail Sales
● Durable Goods
● Consumer Price Index (CPI) e Producer Price Index (PPI)
There is more than enough to choose from and test the trading on the News.
Now that you know which indicators to look for, how do you find them?
Here is the rule: it is not enough that the indicators move, they must move in an unexpected way (up or down).
If there is only an expected downturn, the currencies will not move. But if, instead, there is a relatively small movement, if it is not expected, it can result in large movements.
Then it is important to consider how quiet the market is at this time: the quieter it is, the more effect the News will have.
I can assure you that these movements are easy to verify. During the AB Forex seminar, I show this online and the participants can see on the monitors what is happening.
One of my students focused on trading on the News and in a few months he left his job and only does that. A few minutes a day, not every day and he earns twice as much as he earned before in his job.
Trading on the News is something quite practical. It is fast, unique: it is the magic of Forex in its most immediate form.
To your financial freedom,