5 Easy Steps
5 easy steps to deal with the high impact news
Fundamental news is the most important event for Forex traders. This news can change the course of the trend within a fraction of a second. If you carefully evaluate the actions taken by the professional trader, you will find one thing in common. All of them are taking their trades after assessing the news data. But evaluating the news data is not an easy task. You need to know some key steps which will allow you to take the trades in a professional manner. Let’s learn about 5 important steps which you can follow to deal with the major news.
1. Avoid the high impact news
Those who have less than 1 year of trading experience, should never trade the high-impact news. High impact news should be traded by experienced traders only. If you think you can become a successful trader within a short period of time, you have a lot to learn about this industry. The only way by which you can protect your trading capital and follow long-term goals is to learn about the critical news data. Since it will take some time, we recommend the novice traders not trade during the high-impact news for the first few months. This will protect their capital and let them trade in a safe manner.
2. Analyze the news
You must learn to analyze the news events and only then you can expect to become a successful trader. Retail traders often think they know everything about this market. But this is not all true. If you want to protect your capital, you must learn about the news event. In fact, fundamental analysis in Forex is often considered the most vital step to find the best trade setups. Start with the low-impact news. Once you become comfortable with the low-impact news, study the medium-impact news. After that, you should learn about the high-impact news as it will provide you better opportunity to take the trades in the market.
3. Learn the price action signals
To trade the major news, you must learn about the price action signals. By using the price action confirmation signals, the traders can easily execute high-quality trades and make consistent profits without having any trouble. Once you learn to take the trades with the help of the Japanese candlestick pattern, you will become more confident with your actions. This will help you to execute high-quality trades’ at the most critical stage. But never think you know everything about this market. Take your time and evaluate the market data along with the candlestick patterns. Once you become good at analyzing the price action signals, you can trade the market with strong confidence.
4. Learn to reduce the risk
Money management is one of the most important elements in the Forex trading business. If you think you can become a successful trader without evaluating the risk factor, you are walking on the wrong path. Try to trade this market with 1% risk so that you can embrace the losing trades with a big smile. Never look for the shortcut method. Some retail traders often use the high leverage trading account to trade with high risk. Eventually, they lose most of their trading capital and quit trading. And if you follow the same steps to trade the high-impact news, you are going to blow up the trading account within a short time. So, try to think about the risk factor before taking any trades.
5. Trade with confidence
News traders are confident with their actions. They never blame the market since they know they need to take the liabilities for their actions. Believe in your trading system and be confident with your actions. While trading the key news event, never break the rules. Reduce the risk factor in each trade so that you can accept small losses without having any mental stress.
