Everyone wants to make their life better. People work hard all day long to ensure a decent standard of living. But even after giving the proper dedication, there is no assurance you will get a decent job.
For this very reason, many people in Hong Kong prefer to trade the Forex market. Forex market is the largest financial market in the world and every day more than $4.5 trillion is traded across the globe. If you can predict the price movement of a certain asset with an extreme level of accuracy, within a short period of time you can easily make a huge profit from this market.
Today we are going to discuss the key steps to trade the high impact news.
Learn About Price Action Trading Strategy
In order to trade the high impact news, you must trade the market with the price action confirmation signal. Making consistent profit in the Forex market is a very challenging task.
If you look at the experienced traders, you will be surprised to know they are trading the high impact news based on price action signal. So, how do they trade the major news using the price action signal? They simply analyze the lower time frame data and execute the trade with an extreme level of precision.
Prior to the high impact news, you need to look for potential trade setups in the lower time frame. Though the trading strategy is extremely profitable, you should always limit your risk factors in trading.
Never Execute Any Trade Prior to the News Release
Those who are new to the trading industry always try to execute the trade prior to the high impact news release. But such an approach usually results in heavy loss. Being a new trader you should also find a reliable broker like Saxo so that you can find great trades.
Feel free to visit https://www.home.saxo/en-hk to learn more about the premium trading environment. Once you have access to the professional trading network, it’s time for you to find the very best trades. Wait for the major news release and let the market dust settle. Once the market exhibit stable movement trade in favor of the news and you can easily make a huge profit from this market.
Limit Your Risk Exposure
Being a new trader you need to understand the fact, trading is all about risk management. If you fail to manage your risk factors, it won’t take much time to blow up the trading account. The new traders often take a huge risk to place their trade with a hope to make more money.
But eventually, they lose a significant portion of their investment. On the contrary, the experienced traders, always try to find the best possible trade setups with managed risk. They know the complex nature of this market and thus they never risk more than 2% of their account balance. If you fail to limit your risk exposure in news trading, it won’t take much time to blow up your trading account.
Stay Tuned with the Latest Market News
The professional news trader is learning new things about this market. In fact, they are the most active member of the social trading network. Unless you keep yourself tuned with the latest market dynamics, it will be really hard to make some real progress in the trading business. Always remember, trading is all about managing your risk factors.
To protect your investment you must keep yourself in sync with the latest market dynamics.
Follow a Proper Trading Routine
All the successful traders maintain a proper trading routine. They never execute any trade without doing hard work. Write down your trading rules on a piece of paper and follow the guidelines. Never break your trading rules even if you lose few trades in a row.
Always remember, trading is all about having a risk management policy. So, you must work hard to become a disciplined trader.