Why you should trade the high impact news

[vickymacklean]

The forex market offers huge profit-taking opportunities to retail traders. Those who can manage to find the best quality signals can change their life without having any issues. But things have changed a lot and people are looking to increase the profit factors. Living your dream life based on a position trading strategy requires a big balance. Even for the advanced traders in Australia, it’s hard to manage big funds to start making millions of dollars. So, is there any way to solve this problem? Using the high impact news, you can expect to make big gains from this market. But for that, you must work hard to improve your precision. After you read this article, you will understand why it’s high time to start trading the major news.

 

Low volatility

We all know the Forex market is extremely volatile. But the thing the volatility has ceased to a great extent due to close competition among the big players. So, to experience decent volatility, you should start focusing on the major news. Though it’s a risky process, without taking the risk you can’t improve the profit factors. Many intermediate traders are living their dream life just by learning to trade the major news. Instead of thinking about the traditional approach, try to go with the market flow. Once you get skilled at trading, you should start focusing on the news trading method.

 

Secure the big movements

To secure the big movements in the Forex market, you must trade the major news. Let’s say, EURUSD pair is in an uptrend. To make 200 pips profit you must wait for weeks. But if you trade the EURUSD pair during the NFP or press conference you might make this profit in less than one hour. The traders need to think smart and take advantage of the market movement. Before you start dealing with the major news, open a demo account and try to understand the impact of different news. But make sure you are not taking too much risk while trading such news. News trading is not perfect and you will lose many trades. To minimize the loss, you must create a unique risk management policy. Once you do that, you can secure the big movements by utilizing fundamental and technical data.

 

Gives you more freedom

The news traders can enjoy the freedom of trading. On the contrary, those who scalp, always stare at their trading chart. They look for the potential signals in the higher period with a big hope to earn more money. But if this was so easy no one would have tried to trade the major news. On the contrary, the professional news traders analyze the market variables before the high impact news. Once they get the data, they place the order in favor of the trend. You don’t have to stick to the major trend as a new trader. You can even trade the major reversal and make a decent profit without exposing yourself to the high-risk trading environment. Think like the professional traders who know the perfect way to trade in extreme market conditions.

 

Use of leverage

The intermediate traders never understand the use of leverage. Leverage is offered so that the traders can make a big profit. The retail trader increases the lot size even in the low volatile market. They consider it as the best use of leverage. But the smart investors use the leverage to trade the major news. They increase the lot size and trade the market with low risk. Though it might be complicated once you start to understand the news, you will increase the lot. But never forget the unpredictable nature of the investment business. Be prepared for the worst-case scenario. Focus on the simple method of trading and try to improve your skills. Keep on reading more books on lower period trading strategy and use the knowledge to trade the high impact news.