Learning to take trades in the major news

Learning to take trades in the major news

News trading has always been a very challenging task. The volatility of the market rises exponentially and it becomes hard for the intermediate traders to take the trades. Only the skilled traders know the perfect way to deal with the volatile market. It might seem tough but if you know the formula to take the trades in the major news, it should become easier. Many people have mastered the news trading strategy by using a very simple technique. Before you start to take the trades, you should be focusing on your basic skills. Without having a strongly basic, you won’t be able to learn news trading. We are assuming you have sound knowledge about the support and resistance level. To be precise, we have considered you as an intermediate trader. Now let’s learn the process of news trading.

Type of news

Before you take any trade, you have to determine what type of news you will trade. Most of the rookies start with the high impact news. Taking the trades in the high impact news is a very tough task and most people don’t have any idea to deal with their stop loss and take profit price. Instead of doing that, start with the low impact news. Secure 10 pips profit but learn the impact of the news. Once you get used to the low impact news trading strategy, it’s time to learn about the medium impact news. Things will start getting harder when you focus on the medium impact news. But as you gain confidence, the final step is to study the impact of the major news in the financial market.

Use multiple time frame analysis

To trade the high impact news, you should be using the multiple time frame analysis technique. Look at this site and explore the features of the high-end trading platform Saxo. You should get the basic idea of how the trades are taken at the most complex steps. By switching to different time frames, you should be able to filter out the bad trades. Give priority to the higher time frame trade signals as the quality is much more precise. It might be tough for new investors to learn the perfect method of multiple time frame analysis in the real market. They should be using the demo account and it will boost up the skills within a short time. So, study this technique to improve your news trading skills.

The use candlestick

The use of a Japanese candlestick pattern is a great way to improve your news trading skills. But when you use this method, you should switch to different time frames and see what the candlestick in the higher time frame has to tell. Unless you emphasize the higher time frame data it will be a big challenge to overcome the obstacles at trading. People who are good at analyzing the critical market data with the help of the Japanese candlestick pattern can trade with tight stop loss even in the major news. News trading is not all tough but if you take the correct steps it should become an easy task and you will be more comfortable with the approach.

Identify the major chart pattern

Chart pattern trading strategy can be an effective tool at trading. People who are using the major chart pattern can trade the key reversal with the help of news. If the breakout favors the news data, you can open the trade with great confidence. But don’t get greedy while taking the trades with the chart pattern trading technique for the first time. You have spent some time learning the details as it will boost your confidence level and make you a great trader. Never become too aggressive with your trading strategy since it causes a great level of trouble. Be safe with the approach at any cost.

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