Everything you need to know about…
For most people, keeping up with news and current events is something that’s done out of general interest. But when you’re trading, knowing how to ‘trade the news’ is an essential skill. That’s because knowing what’s happening in the news can be the difference between winning and losing a trade.
Essentially, it all comes down to the world’s markets being built upon a vast network of information. As each new piece of information is released, prices go up and down as traders and investors digest the news and react accordingly; generally if the news is good, investors are confident and prices go up. If the news is bad, the reverse is true. Therefore, knowing when and where the big news will arrive is of great benefit to traders.
There are different categories of news to be aware of. The first is the regular, or recurring, news like economic data releases or corporate earnings reports. The other is unexpected news, or one off events, like a natural disaster or conflict. When you’re putting together a trading strategy, it’s important to be aware of both kinds.
Another major thing to be aware of is what parts of the market the news will affect. A particular piece of information might affect a market in a broad sense, or it could be something that only influences one stock or currency pair. The hard part is knowing how it relates to your trades.
The following links have been gathered together to give you a bit more information about trading the news and where to get started.
Our news centre includes the Daily Market News Wrap of the previous days’ Forex, commodities and indices market events. Also get live results of economic events via our live calendar and Twitter feed in the centre.
2. Best Forex News Sites
Want more news? This page provides a list of six of the best sites for Forex news and basic trading information
3. News Trading
A breakdown of some of the most important Forex news releases and focus areas
4. How to Trade News
Some very useful examples and tips for new News traders
5. Why Trade the News?
This covers the benefits and pitfalls to consider when trading the news