Trading the major news might seem the most complicated task. Without having years of experience, it’s tough to deal with the volatile market condition. The naïve trader is always trying to trade the volatile market since it gives them a unique profit-taking opportunity to earn a huge amount of money. But things are not as easy as it seems. Most of the time, the traders find themselves on the losing sides. Those who are thinking that learning about the fundamental analysis is enough to trade the major news is making a big mistake. To make yourself skilled at trading, you have to focus on the technical details. By synchronizing the technical data with the major news, you can trade the market with a high level of accuracy.
Trading the market based on technical and fundamental analysis is a very sophisticated task. But if you can follow the tips of this article, you can expect to trade the major news based on the two major forms of market analysis.
Find the sweet trading spot
In the event of a major news release, the market tends to respect the critical support and resistance level. Most of the time, it becomes hard for retail traders to predict the direction of the trend with a high level of accuracy. But if you look at the experienced traders, you will notice that they have drawn all the critical support and resistance level in the higher time frame. Since the news act as price driving catalyst, it can push the price towards those level. However, never expect support and resistance levels are rigid zones and it will never be broken. At times the news can even change the trend without giving any prior notice.
So, how can we trade the sweet trading spot? Once the news is triggered, you should wait for the price action signals in the lower period, once you find the technical trade setup in favor of the news, execute the trade. Those who are new to the news trading method can use the copy trading service and see how the professionals execute trades and make money in a high level of volatility.
Avoid trading the press conference
The press conference is one of the key catalysts that create massive spikes in the price chart. Things might be hard but some professionals often trade the press conference and make a decent profit from this market. If you want to earn a consistent profit from this industry, you need to learn to trade the press conference. However, you should always stay in the sideline during the press conference provided that you have less than three years of trading experience. At times waiting if much better rather than losing money in the insane market condition.
Use the advanced risk management policy
You need to use the advanced risk management policy to become good at trading. Most of the time, the naïve traders are having a tough time at trading since they don’t know the perfect way to manage the risk exposure. They are always taking the high risk to trade the market. But if you look at the experienced traders, you will realize the importance of using advanced risk management policy. Since you will be trading the major news, you must learn about money management techniques. Forget the fact, trading is all about the deal with high impact news.
Use the demo account
To learn the art of news trading, you have to use the demo account at the initial stage. Try to come up with a unique news trading method that deals with technical and fundamental data. Things might seem daunting but you do have the demo accounts to practice new strategy. Stick to the demo environment unless you feel confident with your trading method. Once you get better at trading, start trading the real news with real money.