Just put your money in the forex and you can make thousands of dollars in a matter of minutes by trading the news. Do you think this is realistic? Well, it is definitely possible! When news announcements are released, the market can move 50-100 pips in just a few minutes. All of this sounds really promising, right? Well, let’s take a look at news trading and see how you can profit from it.
Why should you trade the news?
News trading gives you the opportunities to make some serious money very, very quickly. And since news is released by countries throughout the day, you can make money in the morning, evening, or night.
The key is learning how to trade news profitably. With the reward of a bunch of money also comes the risk of losing a bunch.
What currencies should you trade?
When trading the news, you want to trade currencies that are greatly affected by these releases. So this means you need to trade the major world currencies – the U.S. dollar, Japanese Yen, Euro, and the British Pound. Don’t worry – even with these few currencies, you will get plenty of news trading opportunities.
When are news releases?
News is released (usually) during the morning hours of the country releasing the news. So in the United States, news is released between 8:30 AM and 10:30 AM Eastern. European news is released around 3AM Eastern. Japanese news is released around 7PM Eastern.
And there is even better news! The news releases are scheduled and published weeks in advance. This means that you can study up and be prepared. Just do a search on Google for ‘forex news calendar’. Oh yeah, don’t forget to convert the release time to your local time zone!