Announcement of major economic events and news, usually leads to high volatility in Forex. Thoughtful and accurate approach to trade compliance at this point gives you a very profitable transactions in a month.

For all the time as Forex market was created thousands of different strategies. Yet the Forex market is chaotic, dynamic, and sustainability is not peculiar to it. Devised strategies either do not work at all or stop working after some time to use them. After all, sooner or later a strategy will fail and need to be updated. But thousands of good Forex strategies we are able to more than a dozen Universal Trading systems that will operate hundreds of years to find. It is interesting – what are these strategies? This is the tactic of the channel, trading on the break, trading on the news, etc. Now we see through trading on the news.

Its meaning is to carry out specific bargains during the announcement of economic news that are very important. It is important news! The strategy is based on strong price movements. Especially important news – the majority of the news referred to the United States and published in 1:00 p.m. to 4:30 p.m. GMT. There is something new in the late 5:15 p.m. to 6:15 p.m. GMT.

There are reports that many people interested in: the interest rate changes of the world’s largest banks: ECB, Bank of England and the U.S. Federal Reserve, GDP, non-farm payrolls – the parameters of the state unemployment outside U.S. agriculture , Data on the trade balance, data on inflation, because they can cause a rapid price movement. Time of the announcement of the above parameters is known in advance. 99% of the price will move significantly in some side effects. It is very difficult to control the direction of price movement to predict after the announcement of the news.

Regulations of the strategy of “trading on the news”:

1. Not playing with a big party.

Undoubtedly, Money Management is vital to always be respected, and when trading on the news in particular. If you trade 1 / 10 of your deposit, the lower the risk is 1 / 15 or greater. And if you trade with only 1% of the deposit, it may not be changed because it allowed a minimum.

2. Not open the orders for the outlet of the news.

Premature opening of the faces losing position. Before the publication of data keep yourself in the hands and not in a hurry.

3) Place your orders right.

Get ready about 15 minutes before the outlet of the news set in one of two pending orders from the current price: Buy-Sell-stop and stop with indented paragraphs 30-35 above and below the current price of the desired currency pair . Stop Loss should be short. Define yourself by Traling-profit and stop. So, once you planning two versions of events. The most important – is not around to make orders for the current price. Prior to the date of notification of the message will surely be small oscillations of the price in both directions. And if your current orders are closer than 20 points of the current price, they can be captured by market fluctuations. Also – we await the news outlet. If in 1-2 minutes after the announcement of the data, no order has worked, we will remove them. And if an order is opened, immediately remove the second and see how the profit increases.

Strategy of “trading on the news” is not new. You can use it safely, because it is time tested. Only you have the basic recommendations to follow when working on this strategy.