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In this video, we’ll be explaining how the key to finding high probability trades with Forex news has nothing to do with an economic calendar.
Instead, it’s all about tracking sentiment, understanding the context, and then trading when the market expectations suddenly change. Hi. It’s Arno from Forex Source. Before we begin, hit the button below to follow or subscribe so that you will always be notified every time we release a new video.
You know that news moves currency prices. You’ve seen it happen over and over again, but you just can’t seem to predict and catch these moves in time in your own trading. You either end up missing the move completely or the price goes in the totally opposite direction to what you think it should based on the news or data that just came out.
The most likely issue here is that you’re simply focusing or looking in the wrong place. You see, most retail traders will be using free new sources that are normally slow, vague and normally cluttered with a bunch of unnecessary information.
The problem of this is that you end up reading about the big moves only after they have happened, which is really no help whatsoever when it comes to actually predicting as well as catching these moves in your own trading.
Our first tip to overcome this issue is to tune into specialist news feeds that focus on breaking market moving news as quickly as possible. Having CNBC on in the office in the background might seem cool, but it won’t get you the right news fast enough to actually make money with it.
Instead, use news sources that are as close to real-time as possible and importantly, news sources that are focused on the currency market specifically. Once you have access to the right type of news, the next step is all about focus.
Another mistake that retail traders make is that they become super focused and granular on economic data releases. They will pinpoint the highest impact releases on the economic calendar and simply try and blindly trade these events and the currencies based on whether the data comes out very positive or very negative.
The big problem with this approach is that it simply doesn’t work. You might have been very frustrated if you’ve ever tried to trade this way with news using an economic calendar.
The reason it doesn’t work is because professional traders are not trading figures or data in isolation. Instead, they are always tracking the overall market sentiment for a currency.
For example, if Nonfarm Payrolls comes out really positive and above expectations but the market sentiment is really negative on the US dollar, it’s more likely that the NFP will have little to no reaction in the markets.
In fact, the US dollar might even sell off after that release, which can be really confusing and frustrating if you’re not tuned into that overall market sentiment. On the other hand, the professional traders that are tuned in will realize that the market is not really interested in a positive NFP number for that month because of the overall negative sentiment.
Our second tip is to focus your research and attention and analysis on what the market sentiment is prior to any event that you’re thinking about trading. If there is a big deviation in the number and it also matches the prevailing sentiment, then you can look to trade. If it’s not a match, then that’s probably an event that is based left alone.
Guys, thanks for watching. The idea for this video came from you guys that asked us questions about the fundamentals in the comment section, so please keep those questions coming. Also, do us a big favor and click the like and share button if this content was helpful/ We’ll see you guys again in the next video.
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