{"id":9820,"date":"2022-10-14T05:28:29","date_gmt":"2022-10-14T05:28:29","guid":{"rendered":"https:\/\/mdr.foobrdigital.com\/?p=9820"},"modified":"2022-10-14T05:28:29","modified_gmt":"2022-10-14T05:28:29","slug":"beginners-guide-to-forex-news-trading","status":"publish","type":"post","link":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/2022\/10\/14\/beginners-guide-to-forex-news-trading\/","title":{"rendered":"Beginner\u2019s Guide to Forex News Trading"},"content":{"rendered":"\n

As forex traders, it\u2019s important to pay attention to major economic data releases, speeches from government officials, and geopolitical events.<\/p>\n\n\n\n

Why?<\/p>\n\n\n\n

Because this information usually reflects the strength of a given economy and may indicate the future direction of a given currency.<\/p>\n\n\n\n

Trading the news is often difficult and not be suitable for everyone, but the volatility that follows can create lots of trading opportunities.<\/p>\n\n\n\n

Why trade the news?<\/h2>\n\n\n\n

The simple answer to that question is \u201cTo make more money!\u201d<\/p>\n\n\n\n

But in all seriousness, as we learned in the previous lesson, the news is a very important part of the forex market because news has the potential to make the market move!<\/strong><\/p>\n\n\n\n

<\/a><\/h2>\n\n\n\n

When news comes out, especially important news that everyone is watching, you can almost expect to see some major movement.<\/p>\n\n\n\n

The fact that you know the market will most likely move somewhere<\/em> makes it an opportunity definitely worth looking at.<\/p>\n\n\n\n

Your goal then, as a news trader, is to get on the correct side of the move.<\/strong><\/p>\n\n\n\n

The Dangers of Trading the News<\/h2>\n\n\n\n

As with any trading strategy, there are always possible dangers that you should be aware of.<\/p>\n\n\n\n

\"Trading<\/figure>\n\n\n\n

Here are some of those dangers:<\/p>\n\n\n\n

Spreads Widen<\/h3>\n\n\n\n

Because the forex market is very volatile during important news events, many forex brokers WIDEN the spread during these times<\/strong>.<\/p>\n\n\n\n

\"\"<\/a><\/figure>\n\n\n\n

This increases trading costs and could hurt your bottom line.<\/p>\n\n\n\n

You could also get \u201clocked out\u201d which means that your trade could be executed at the right time but may not show up on your trading platform for a few minutes.<\/p>\n\n\n\n

This is bad for you because you won\u2019t be able to make any adjustments if the trade moves against you!<\/p>\n\n\n\n

Imagine thinking you didn\u2019t get triggered, so you try to enter at the market price\u2026 only to realize that your original order got triggered<\/strong>!<\/p>\n\n\n\n

\"News<\/a><\/figure>\n\n\n\n

You\u2019d be risking TWICE as much now!<\/p>\n\n\n\n

Price Slippage<\/h3>\n\n\n\n

You could also experience SLIPPAGE<\/strong>.<\/p>\n\n\n\n

Slippage<\/strong> <\/a>occurs when you wish to enter the market at a certain price, but due to the extreme volatility during these events, you actually get filled at a far DIFFERENT price.<\/p>\n\n\n\n

\"Slippage\"<\/figure>\n\n\n\n

Big market moves made by news events often don\u2019t move in one direction.<\/p>\n\n\n\n

Often times the market may start off flying in one direction, only to be whipsawed back in the other direction<\/strong>.<\/p>\n\n\n\n

Trying to find the right direction can sometimes be a headache!<\/p>\n\n\n\n

Profitable as it may be, trading the news isn\u2019t as easy as beating some toddler at Fornite. It will take tons of practice, practice and you guessed it\u2026 more practice!<\/p>\n\n\n\n

Most importantly, you must ALWAYS<\/strong> have a plan in place.<\/p>\n\n\n\n

In the following lessons, we\u2019ll give you some tips on how to safely trade the news.<\/p>\n\n\n\n

Do you feel overwhelmed by all this margin jargon? \nCheck out our\u00a0 lessons on\u00a0margin\u00a0in our\u00a0\nMargin 101 course\u00a0that breaks it all done nice and \ngently for you.<\/code><\/pre>\n","protected":false},"excerpt":{"rendered":"
As forex traders, it\u2019s important to pay attention to major economic data releases, speeches from government officials, and geopolitical events. Why? Because this information usually reflects the strength of a given economy and may indicate the future direction of a given currency. Trading the news is often difficult and not be suitable for everyone, but the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[818],"tags":[],"_links":{"self":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/9820"}],"collection":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/comments?post=9820"}],"version-history":[{"count":0,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/9820\/revisions"}],"wp:attachment":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/media?parent=9820"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/categories?post=9820"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/tags?post=9820"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}