Such variant of trading as trading forex on news is very popular among most Forex traders. This strategy owes its popularity to such properties as simplicity and high level of predictability. The essence of it lies in the fact that after the release of important news, with almost 90% confidence you can predict in which direction the rate of a particular currency will move. To trade on news on Forex you do not need to have a lot of knowledge.

Most effective trading strategies recommend a market participant to enter the market before or at the moment of the important news release, but this rule should not be taken as an axiom. After all, there are many interesting tricks to trade in extreme moments as well. There are moments when the price behaves the most volatile and moves quite quickly. Today we will discuss how news is used in trading, the influence it may have on the market, and trading strategies on the news. There is a dual opinion about trading in the news time, which divides the players into conservative and radical. Such trading is full of risk and surprise, which for beginner traders can be very confusing. In this article we will try to understand the currently available effective strategies of trading the news in Forex, as well as tell you about the main news, setting the tone for the movement of currency quotes. Assuming that the first category of traders can include those who (as a matter of principle) do not rely on fundamental analysis to open their transactions. They are mainly guided by the methods of technical analysis, reversal, and continuation of the trend, the passing volume, signals of various indicators. For them, all trading strategies based on the news are alien and they prefer to analyze the market after important events.

This tactic justifies itself, but it usually pays off in the middle of the day, on small hourly timeframes. If you take scalping strategies, the fundamental analysis is useless here, and the majority of tactics do not recommend trading on the news. When the news is published, the probability of large price fluctuations increases and the Stop Loss may trigger before the price approaches your goal. In this article, you will learn how to trade on a Forex news trading strategy without being manipulated by market makers. The following participants are those for whom fundamental analysis is the basis of their trade, but they do not prefer to trade during the publication of economic indicators of countries, either. These representatives of the currency market use fundamental knowledge to determine the long-term direction of the price of the current asset. As a rule, these investors have impressive amounts of deposits, so they place trades for long periods: months and years.

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There are also such traders, who actively apply the strategy of trading on the news. For them, this tactic has become the main occupation. These traders approximately already know how this or that news will affect the asset, whether it will result in the passage of a large number of points or the market will meet it sluggishly. They also take into account inadequate market reactions, using special techniques to minimize losses. How to apply news in trading? There are only 2 options for using news trading: before the economic data release, close all positions or at least drag the Stop Loss to a break-even zone to protect yourself from losses. If the price makes a sharp jump towards the Stop Order, you will simply not have time to react and will have to close the trade manually with a substantial loss. You can try to catch this momentum by placing pending orders for a breakout on both sides of the price 10-15 minutes before release. As for finding the source of information for a trading strategy on the news, there are a lot of sources that provide them. For example, the ForexFactory website  is very informative in this regard. Here you can filter and screen out news according to the degree of economic importance and choose the currency pairs you need.