Stop Losing Money! Trade News the Right Way with These 5 Tips
Trading News the Right Way
In this video, the speaker shares tips on how to trade news effectively. He explains that trading news is a struggle for most traders and provides advice on how to avoid losses.
Importance of Economic Reports
- The top economic reports to trade are rate decisions, job reports, inflation reports, and PMIs.
- Non-Farm Payrolls, US consumer price index, Federal Reserve’s monetary policy announcement, European Central Bank meeting, and job reports of Canada, Australia and New Zealand are some of the best economic reports to trade.
- Dailyfx.com and tradingeconomics.com are great resources for finding out which economic reports are tradable. Look for events labeled HIGH impact.
Knowing What is Expected
- Research what is expected if it's not listed on the calendar. Google Fed meeting or ECB meeting or NFP expectations but make sure you’re going to a reputable news source like CNBC.com or Bloomberg or Marketwatch.
Finding Release When It Comes Out
- Go to dailyfx.com or turn on CNBC but Twitter is your best resource because it's faster and you’ll also get their interpretation because for many people it's hard to figure out what’s the main takeaway.
Feeds To Follow
- Follow @forexlive @newsquawk @investingcom and @reuters feeds as they provide instant release and instant interpretation of news releases. Use a news aggregator like tweetdeck to follow these feeds simultaneously.
Time To Trade
- Wait at least 5 minutes after the report is released to get in. By this time, the knee-jerk reaction has happened and the experts and the broader market have made their assessment of what the takeaway should be from the report.
- Follow the direction of the breakout. This is how to trade news effectively.