Three key steps to trade the high impact news release
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July 31, 2017 at 8:28 am #4840
People are working very hard to master the art of trading. But even after doing all the hard work very few of them are able to make money in the online trading world. The professional traders have worked very hard to educate themselves with the proper knowledge of this industry to make money in the online trading world. But if you are new to this industry then you might think it as an easy task which is actually not. If you look at the success rate then you will find then only 5 percent of the traders are making money in the online trading world. As a new trader, you have many things to learn from the UK experts. They are smart and they are continuously learning to adapt themselves to the changes of the market dynamics. Today we will discuss an exclusive topic and that is news trading. Some of them say that news trading is the best way to make money while some say it’s better to stay away from it. If you follow three simple steps then you can easily make money in by trading the news.
Multiple time frame analysis
One of the most effective ways to trade the news is to use the multiple time frame analysis. As a new trader you will often have to face too many losing trades but if you can learn the multiple time frame analysis then you can easily save yourself from this catastrophic disaster. When you do your multiple time frame analysis make sure that you are not sticking to smaller time frame rather use at least one higher time frame. It’s true that when you trade the smaller time frame you will be able to make a huge amount of money in short period of time but chances are there that you will lose your entire trading account. So in case of news trading, you can easily avoid the false trading signal by using this technique.
Use price action confirmation signal
The professional news traders in the options trading industry always use price action confirmation signal. They know that it is one of the best ways to trade the live assets by maintaining simplicity. However, you need use technique in terms of news trading. Instead of looking for price action confirmation signal in the higher time frame you need to focus on the lower time frame candlestick pattern. For instance, you can easily switch to the 5 minute time frame and make trades using the reliable pattern. But even after using the price action signal there is no guarantee that you will make money in news trading. So never trade with high risk during extreme volatility rather reduce your risk tolerance level to 1 percent.
Fundamental analysis is one of essential elements that every news traders should master. If you trade the news data only then you will never be able to make money. You need to understand how the market is working in the financial world. Try to assess the economic performance of certain assets and based on that relate your technical trading analysis. At your initial stage it will be a little bit hard for you to master this skill but in the long run, you can easily make a huge amount of money by using this system. However, some of the novice traders often tell that fundamental analysis is not required for news trading but they are absolutely wrong. They need to have perfect knowledge in this section to make a profit in news trading.
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