The major news can create high volatility in the stock market. Those who are trading the stocks for a long time knows the importance of the news trading strategy. But the rookies in Hong Kong jumps to the stock trading business without knowing the critical market data. They open trades based on the news factors and eventually lose money. To survive as a currency trader, you should be learning to take the trades with discipline. This should give you a perfect environment to open the trades in a very strategic way. When you do things in the right manner, you can trade the major news. Read this article since we will highlight some of the key issues that determine whether you ready to trade the news or not.
Do you have a news trading strategy?
The news trading strategy is completely different from the regular trading method. If you believe, you can trade the major news with the technical factors, you are making a big mistake. You have to learn the news trading method in the paper trading account. As the volatility is very high, the traders use a different approach to take the trades. But learning to trade news or developing a new news trading strategy requires some time. You have to spend at least a month to curate a perfectly balanced news trading method. It might sound boring but it is the only way you can earn decent money.
Can you accept the losses?
You must have the ability to accept losses like the top traders in the world. If you fail to accept the losses regularly, it will be a hard challenge to deal with the problem. For this reason, the elite traders at Saxo always prefer to trade with the low leverage account. When the leverage is low, you can’t open big risk trade even though you might think this is a lifetime opportunity. You will be forced to trade with low risk and this should keep the fund safe. Accepting small losses during news trading will become easier. And you will gain the confidence to trade in such a volatile market.
Do you know the price action trading strategy?
You have to ask yourself whether you can trade with the price action signals or not. If you fail to trade with the price action signals, you won’t be able to earn money most of the time. The rookies are losing money since they don’t have the basic skills to deal with critical market dynamics. They are using too many indicators and losing money most of the time. For the safety of the capital, you should be following the price action trading method from the start. Once you know how to open the trades with the help of a price action candlestick pattern, you will be more confident with your trade approach. Most importantly, you will get a perfect stop-loss zone for the trade.
Are you trading with a good broker?
This might be the most important factor you should consider to trade the major news. People who are trying to trade the major news with the low-end brokers always lose since they don’t have a fast trading platform. The trades get executed at the wrong price and the stop loss never works well. But if you chose a broker like Saxo, it will be an easy task to improve the skills and this should provide you powerful method of trading. Never get biased with the profit potential at trading even though you will trade the news. You have to stick to the regular trading strategy and this should provide you a powerful technique to feel safe even in the major news. But it’s all about practice and acquiring the skills. Get ready to learn this thing by heart so that you don’t stumble in the real market.