Understanding the three most important Forex news

Discussion in 'News, planned work and promotions' started by priyan, Jan 27, 2020.

  1. priyan

    priyan New Member

    News is the most powerful elements that hold the potential to change the market trend. The experienced Singaporean traders know this fact and they always analyze the major news. On the contrary, the new traders often get confused by seeing tons of news release each day. To trade the market like a pro trader, you don’t have to analyze low, medium and high impact news. Keeping eye on the high impact news data can greatly improve your trading performance. But things become hard when the traders fail to classify the major news in the Forex market. Let’s learn about the three major news that every trader should count before executing any trade.

    Unemployment claim data
    The unemployment claim data tells a lot about the market. If you want to make some serious profit, you must understand the economic condition of a certain country. If the economy does well, the unemployment rate will be lower. On the contrary, if the economy fails to add more jobs it reflects the economy is not going so good. Once in a month, this data is released and you can keep yourself tuned by accessing the most important news site like investing or Forex factory. If the actual data beats the forecasted data, you can expect the currency will gain strength. On the contrary, if the actual data fails to beat the forecasted data, you are going to see a sharp drop in the price of that certain currency. So, keep yourself updated with the unemployment claim data as it greatly helps you to improve your profit factors.

    GDP or Gross Domestic Product
    Analyzing the GDP is very crucial. If you can fine-tune the technical pattern in the trading platform with the GDP, you can expect to find high-quality trades. It measures the overall strength of the economy. If the GDP reflects positive data, you can expect a strong positive movement from a certain currency. Think about the professional traders at Saxo. They always analyze the market data before the execution of any trade. Some of you might think analyzing the GDP requires strong knowledge on economics. But you don’t have to dig deep on the basics of economics to analyze the market trend. Just having a basic idea about the previous and forecasted data, you can expect to make decent profit from this market. However, you should try trading the demo account before you execute any trade in the real market.

    Interest rate change
    Interest rate change can greatly affect the market. Think about the FOMC meeting minutes. Since the FED officials declare their interest rate during the FOMC meeting minutes the market becomes extremely volatile and it became nearly impossible to trade. In fact, the naive traders often lose their capital by executing trades during the FOMC. But if you know about the interest rate change you don’t have to lose any money. If there is a hike in the interest rate, you can expect a sharp rise in the U. S dollar index. On the contrary, if the FED officials cut the interest rate, you will see sharp drop in the U.S dollar index. Most of the time the traders find it hard to interpret this simple data and fail to make a profit. Market volatility offers a decent profit-taking opportunity to the traders. If you can take advantage of the major news, you can easily earn huge money.

    Conclusion
    Learning to analyze the fundamental data is not a tough task. With some basic knowledge of the major market news, you can expect to find quality trades. Some of you might get excited about the profit factors in news trading. But you must learn to control the emotions. Without learning to control the emotions, you are going to jeopardize your career. Learn more about the major news and trade with confidence. Never lose hope after losing a few trades.
     

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