Regarding the element of market uncertainty, a forex trader must always develop a news trading strategy. No matter how you have prepared the system, there is still a possibility of loss because the conditions are not in line with expectations.

Market reaction to any economic data and the truth is unpredictable. There is a possibility that the data will be released according to analysts' expectations spread by financial news agencies. However, there are also times when the results of the release are very far from estimates.

More than that, it's almost impossible to guess how volatile the market's reaction to a News Release is. It could be that the market moves 50 pips, 100 pips, 200 pips, or it actually moves. The direction can continue the previous trend happened.

However, it can also reverse drastically, or just flat. Sometimes even the movement of 50 pips is immediately returned by turning 150 pips. The cause of uncertainty is the large number of speculators who play in the market and all of them intend to get instant profits. 

What is News Trading strategy?

The condition above will trigger the spread and trading volume to increase in a short time. The technical background of price movements will disappear at the same time. A ninja trader like this will come out from the market and then the Momentum Trader's will appear.

It turns to jump into the market and compile short-term trends. It doesn’t mean that the news trading is hard to do. News Trading is quite the same like finding a technique to get a lot of profit in a best forex broker. 

What a trader needs to keep in mind is that you are involved in a probability game. The traders are ensuring that a trading market moves in certain condition. Proper money management and risk control needs to be applied in this news trading strategy. 

Stop loss should not be too tight. Besides, the combination of position size and also leverage has to be moderate. You have to understand all of those things to be a successful trader. Make the best combination of those aspects are also recommended.

Considerations in Making Strategies

Taking into account the things above, the arrangements that need to be considered in making a strategy of news trading is varied. The example is questioning yourself about “will you open a position only if the data has triggered turmoil in the market?”

How big fluctuation in this news trading strategy (in pips size)? Or opened before the turmoil appeared? Consider the estimated data threshold and the position of trading. Will it be located above, below, or maybe between two aspects in the market? You have to answer it.

Determine how long the trading position will be left floating too. In addition, consider the most reasonable technical level Take Profit and Stop Loss will be placed is. This strategy needs to be done before the time of the news release. 

The Reality of News Trading

For a trader, the economic data release is an important thing. It can influence the market condition when you are doing forex trading activity. There is an interesting fact about news trading strategy. Most traders thought that this news trading will affect the market quickly.

You maybe complain about why the price is not moving to the direction which are expected. After that, you will say that news trading is ‘impossible’. In fact, news trading is profitable, but you must know the right ways to do it and join the Didimax forex broker.

When the awaited moment arrives, the trader needs to move like a full automatic EA robot to obey the strategy. The key is also choosing the professional broker such as Didimax. It will make your news trading strategy can be done smoothly.