Do you want know how to trade forex with news ? well to day I will give a little trick and tips! how to trade news like a pro :) to be honest news trading strategy is not hard to learn, but it doesn't mean easy! there many reason why most people never use this strategy! some people said trading news are hard, since no technical correlated, .as you all know most forex trader are technical types! and economic news for them are disaster!
Did you know until today there's no EA or FX robot that can read news :) to be honest I am not surprise! since most EA only number and command! and making Indicator as base to open new position! That's why EA not now or in future can not read the economic news! but lucky you since you read my blog! I will make sure you can read economic news and hot make profit from it! but before we dig in news trading strategy more further! I will give a brief of knowledge about basic things!
first of all when we trade using news, we have to understand there's no technical needed! though we need knowing the trend since its our friends I am sure you already heard that words somewhere that Trend is our best friends :) there always be a reason why people said that! but we'll not go into that! maybe on next chapter! ok back to topic ! news trading basically have simple concept I.e GDP, you can read about gdp
in macro economic news! GDP mean rough market value of some country! if country have huge value, automaticall it will effecting their currency! so if we want to know how currency movement, we should know how to calculate GDP!
so the big question is how to calculate GDP :) C+I+G(X-M) C for consumption, it could be retail sales, home sales, unemployment and etc. I.e factor that can boost consumption! I is for investment, not stock or bond! but company that purchase machinery in large quantity! as purpose to increase production! meanwhile G is government spend! it could be anything, e.g health insurance for poor peoples, government project to create jobs and etc. X-M mean exports minus Import i.e Trade balance! for small country trade balance are the most important factor! mean while for big country even if they have minus trade balance it will not have any effect for their currency!
now you know about GDP calculations ;) it means you already have big picture how to trade news! yep! big country, watch on their consumption factor! meanwhile for small country keep eye on their trade balance ! on the chapter we will go into detail and tips how trade forex with news!
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