Well, the potential for profit is there. So, why not?

News

First, I need to warn you about something. Most forex brokers don’t like news traders. News traders increase their risk, and they really don’t like that.

So be prepared to do some searching to find a good forex broker.

Okay, that said, the best way to trade the news is to use a variation of a common tactic. Most commonly, the news is traded by straddling the price.

In other words, a buy is placed above the current price, and a sell is placed below the current price. The idea is that the price will continue to go in the direction that it has started it.

Sometimes this is true. Other times, not so true. And it’s those not so true times that will sting you.

And so, this can make news trading difficult. So, what are you to do?

Well, simply this.

You put a spread on. However, you operate it a little differently. When one of your orders is touched, you work to exit after a small profit (like 15 to 20 pips). After that, you are out and done.

If the market reverses, you exit at your entry for a break-even trade. You will lose the spread, but that’s not much more than a few pips.

Then you wait for the other order to be activated. And you trade it in exactly the same way.

Forex Trading – Making Money in Forex News Trading

Forex Trading – Making Money in Forex News Trading is a post from: News Update