Friday, May 22, 2015

News Forex Trading Strategy Advanced Revealed

Since I trade forex with news so many times! today I want to revealed my advanced trading strategy ;) and I hope you guys will like my simple trick ;) well... maybe not that simple! :P hehehe! before we go into that, first of all you have to know about the idea how news trading works! when we trade with news, we should know the basic concept of economic fundamental, and what the biggest factor that can influence currency value? yep! GDP, or gross domestic product! for detail about GDP you can read wiki pages! (wiki GDP) basically GDP is market value and most investor see GDP as barometer to invest! but of course its not the only factor to consider , I am sure many factor and a lot! but it will depend on their consultant investment! cause I believe people that have money, don't have time to check one by one about what is going on in that country! :D

I assume that you already read wiki pages and know how to calculate GDP! cause by doing it, it will make you lot more easier how to understand how economic fundamental works, and why some currency can be strong and dominant than other! for example US GDP value about 16.77 trillion USD, the biggest value in the world! so you can imagine how big and potential US market is! so the big question is ;) what important factor that can influence GDP some country ? well, it will depend on size/population, and demographic! simple because it will related with GDP per capita! for example China GDP about a half US i.e 9.24 trillion , meanwhile their population about 1.3 billion peoples!  so their GDP per capita about 6.807 usd, if we compare with US GDP per capita i.e 53.041or about 10 times bigger than china! but for long term china can catch up US, maybe in 5 or 10 years to come!

Basically for most big country such as US, Japan, China India and etc. the biggest contribution relay on their population it mean consumption are the biggest factor that can boost GDP value! that's why economic news that related with consumption,(retail sales, unemployment, housing sales and etc) have high impact for their currency! but for small countries, e.g Australia, Canada, New Zealand and etc. their biggest GDP contribution depend on Trade balance! that's why when aussie trade balance minus! their currency will be weak for a months to come, until they can recover their exports! in short, for big country watch their consumption factor! and for small country keep on eye their trade balance! if they have bad trade balance, you can short their currency, and make some profits!

But of course trading with news, will not easy like I said! cause it will need more detail how to cr4ck this strategy! ;) and good news is, I will revealed my advanced strategy and how I trade with news! bellow are a few tips how to make profit with news!

  • First, find the weakest and strong currency for that day! you can analyze their power by comparing with another major pair! choose the strongest and the second strong! and then compare with the weakest and second weakest! for example if USD, and CAD are the strongest currency meanwhile AUD and NZD are the weakest, so the most potential currency that you can trade is, AUD/USD, NZD/USD, AUD/CAD NZD/CAD next step is.
  • Find the news that related with strong or weak currency! if there is a news that related with US(positive) or Aussie(negative), I must said, there is a potential to make profit! :) next step is!
  • Recognize the Trend of potential pair! if AUD/USD have down trend! and also if there's a news that will have positive impact for US dollar! be ready to short AUD/USD,  cause your chance to make decent profit will increase!
  • The last step! wait until the news comes out! ;) yep! the trick is do not trade before! but after! because if everything go on the right track! e.g Strong weak, News + Trend! that pair will move without a fight! and of course you can make huge profit in that day!  trust me it works like a charm!  ;)

my 2 cents!

News trading strategy can be profitable if we combine with another analysis! such as, weak and strong currency, News, Trend and etc. the idea to make profit from news is simple because of chances! if we want to increase our chances! the best way is by  combine all analysis cause with that way, we can make easy money from news trading strategy! but I must to tell, you! in forex industry sometime 5hit happens ;) lol!
so be careful and be wise guys! use stop loss and other risk management that you can think of! at least when bad happen, you not lose everything in a single day! :)

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Ditulis oleh: Forex Trader ForexAbiz Updated at : 6:50 AM

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