If investors are not sensitive enough to news, this is fatal, because it directly relates to the safety of your property.
We need to care about a country and international relations.
The more types of trades you make, the more extensive your knowledge will be.
News is the most direct tool we have to perceive the market.
Basically, every investor pays attention to a lot of market news every day.
But not everyone can use this news effectively, so how do you trade on news?
Focus on what news is coming at the national level, and there is no doubt that the most notable is the United States.
New York is a major market in the world.
More than 90% of the world’s total involves trading.
Europe is next, with London’s foreign exchange market second only to New York’s.
China can focus on Hong Kong in terms of time, focusing on the opening time of European and American markets.
Note that European and American time is divided into daylight saving time and winter time.
Summer Time in the United States begins at 2 a.m. on the second Sunday in March and ends at 2 a.m. on the first Sunday in November.
Daylight saving time is one hour ahead of winter time.
Most of the adjustment in Europe takes place on the last Sunday of March and October.
European markets will be open from 15:00 PM to 22:00 PM and US markets from 20:00 PM to 03:00 PM according to DST Beijing Time.
20:00-22:00 is the coincidence time of the European and American markets, and the market is relatively active.
Focus on economic data, followed by speeches.
The US focuses on non-farm data, resolutions, () and consumer price indices, trade balances and retail sales for their impact on prices.
The impact of an economic data on the market can be judged from the stability of historical data and the fluctuations of market prices at the corresponding time.
In the absence of black swan events, generally speaking, an economic data in the past is relatively stable, there is no fluctuation of market price at the corresponding time, it does not have much impact on the market, and investors do not expect it.
In addition to such regular news, special attention should be paid to international political risks, including elections, wars, coups, border conflicts, pandemics, etc.
These black swan events will cause some market sentiment and affect market prices.
How to Use News Trading General news trading methods are divided into two categories, directional trading and non-directional trading.
1) Directional trading Directional trading is when we anticipate how news will affect the forex market in advance, then move in to trade and set up stop-loss points.
In fact, there are two disadvantages.
First, your predictions may not be accurate.
Second, some financial institutions will be out in force long before you make a move, which will affect market direction.
For the first point, we can use historical data to improve the accuracy of our forecasts.
When forecasting non-farm unemployment, for example, analysts will base their decisions on historical data.
In the absence of a major black swan event, the general data is homeopathic.
On the second point, it is inevitable that some financial institutions should have a team dedicated to the news.
If financial institutions predict the market correctly, they will weaken the market’s uptrend by getting long in advance.
Non-directional trading is adopted at this time.
2) Non-directional trading Non-directional trading means that you do not have to anticipate the market trends caused by this news and place orders in both directions.
Real-time monitoring.
As soon as you see the market moving in one direction, orders in the other direction will unwind in time.
If the platform is less than 5 points, the entry point can be set before the announcement of the minute K chart, which is the position of the top and bottom 10 points of the K line.
If the plateau difference is large, the entry point should be extended to 15-20 points.
The impact of news usually does not change the overall trend of the market, but can have a reverse effect for a short period of time.
So, as long as you set up stops and stops, you don’t have to worry.
If you encounter news while trading sideways, volatility is likely to be more frequent, so keep your news trading to a minimum.
Risks of news trading 1) The market moves significantly beyond the stop-loss level;
2) Trading platform delay;
3) Spread widening and sliding point.
For news trading, it’s important what news to watch out for, but it’s also important how you get the latest news as quickly as possible.
So you can see that experienced people keep their eyes on the financial calendar, and even some people who are familiar with press releases set alarms to remind themselves.
As fears of the new strain continued to ease, commodities and currencies surged on U.S. and European stock markets, while oil prices soared as much as 5 percent.
Please pay attention to the specific operation, the market is changing rapidly, investment needs to be cautious, the operation strategy is for reference only.
