All the above techniques are all good depending on the trading style we like. Some say that trading by following the trend is better but there are also those who say that support and resistance are the best methods. For the best technical analysis problems are relative.
All depends on the calculation of the presentation of profit and loss. If we use technical analysis or an indicator that brings us to a higher presentation of profit, the technique we use is the best technique for us and not necessarily good for others.
Now there are others who say that trading by following news is a technique that makes us profit quickly. Because the movement of the candle can suddenly jump up to hundreds of pips in a short time. Well once again, all depends on friends. It can make us suddenly become rich but actually can make us suddenly poor if we don’t use the right money management.
For that, here I will explain specifically about trading tricks when news comes. Apparently, there are still many who do not understand how to trade during the news. Trading during news means that we take advantage of economic, financial, policy, events, etc. that occur in a country that results in a strengthening or decreasing value of the country’s own currency.
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The arrival of the news can affect the value of a currency erratically or move with high violity. This is the advantage of trading during news. For example, we usually get a profit of 1000 pips in a week with ordinary trade, but when we trade when the news is possible in a matter of a few minutes or hours we can achieve 1000 pips profit in just one open position.
Basically, regular trading and trading when the news arrives is the same. The difference is time. When trading during news, it’s just an acceleration movement from the market that can make us rich or poor in a short time. Because trading during news never guarantees a trader 100% profit.
What is a lot of problems now is when the news informs that a currency will go down, the movement of the chart actually rises. This is indeed strange, and rightly so. It could be that news is contrary to reality in the market. So, risk management needs to be applied in trading news.
Well, as for the opportunity this time we will show How to Open Position On Trading based on risk management. For more details, I will show you how to trade when the news arrives how to open a position complete with pictures:
How to Open Position On Trading
1. First, you see the world economic calendar first. One of the best economic calendars, in my opinion, is the economic calendar on the forexfactory.com site. You see where news that has a big effect usually shows a red indicator. For example, one of the most influential news that will come out at 8.30 a.m (American Time) is the news of Non-farm employment change and Unemployment rate (news about US employment).
2. After identifying the presence of big news, 10 minutes before the news release, immediately you open the meta trader and then install the “trap” pending order, namely buy stop and sell stop. This is based on my experience. My pip’s daily target is 75 pips as well as losing it. If the pips target is felt lacking, use a lot that is rather large because I think 75 pips is enough. The point is set according to your capital. Here’s the illustration at 1-hour time frame.
The question is, do we not put Stop Loss ?? Keep using it. If the price, for example, is about Buy Stop, then I will remove Sell stop and then I will install TP 75 pips. Likewise with Sell Stop, if the price has hit it, then delete Buy Stop then install the TP 75 pips.
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Kinds of News that is most eagerly awaited.
How to Open Position on Trading. The news that appears every day is different. Some have small, medium, and strong effects on the market. The greater the influence the better. The most influential news or what is usually given a red indicator on the forex factory site is news about:
This is information about employment in America especially for farmers who are there. The effect on the market can reach 100-200 pips or even more. Usually, this news appears on Friday the first week at the beginning of the month. And surely every month will always be there. So, don’t miss it.
2. Trade Balance
The trade balance is news about a country’s exports and imports. Sometimes this news often appears, so it’s good for you to choose trade balance news that appears at night around 8-9 WIB. The effect on the market is around 70-120 pips.
3. Interest Rate Statements
Interest Rate Statements are a country’s interest rate policy. This is news about investments in and out of a country. Its influence reaches 100 pips and above. As well as the Interest Rate Statements is one of the news that is worth taking into account to wait.
4. Durable Goods Orders
Durable Goods Orders or translated Durable Goods Orders are information about purchasing durable goods in the country itself such as industrial equipment, transportation of cars, airplanes, and others. The effect on the market reaches 50-100 pips.
5. Unemployment Rate (Unemployment Rate)
Unemployment Rate is news about the unemployment rate. The higher the level of unemployment, the weaker the exchange rate of a country’s currency. The effects of this news reached 30-50 pips. It’s relatively small, but sometimes it can be more than 50 pips because there is nothing certain in the market.
Now that was the Way How to Open Position On Trading along with important new-news information that we need to know so we don’t miss it. Forex is very risky, any technique that you use or any method that you apply should never forget Money Management.