Why you need to analyze the major economic news
Very few traders pay attention to the fundamental news. To rookies in Hong Kong technical analysis is the key to success. If you start working hard, you can know the basics of the technical analysis in less than 2 months. To master the details, it might take another 2 -3 months. Even after all this hard work, you won’t be able to take the quality trades by ignoring the news. Economic news is the key reason for which we are experiencing volatility in the market. By trying to avoid the economic news, it’s just a matter of time before we lose the capital. Let’s find some of the key reasons for which we must analyze the major news.
The volatility of the market
Without assessing the volatility of the market it is nearly impossible to predict the perfect stop and take profit. You might have a strategic approach to determine the take profit and stop loss but it won’t work until you measure the volatility. Using the volatility indicator is not going to help much in this regard. But if you use the news as a volatility indicator, you can take your trading to the next level. The news is more like the leading indicators. By professionally using the news data, the traders get the unique chance to execute high-quality trades.
Try to analyze the news and take the trade in the demo account. Soon, you will realize, news are nothing but the best asset a trader can use.
Change in the trend
The top analysts at Saxo Hong Kong always predict the change in trend by using technical and news data. To see a massive change in the trend, you need high impact news. Those who are thinking the technical data is enough to find the quality trades have a lot to learn about this market. But if you analyze the data with the help of fundamental and technical factors, you can easily predict the trending movement of the market. You will get a clear indication when the trend is going to reverse. Though reversal trading is an advanced trading technique, with the help of news, you can master this skill.
Avoid the massive spikes
News factors are the key reason why we experience massive spikes in the market. If you ignore the news factors, you will never know when the market is going to be volatile. Some people often track the news only to avoid taking the trades during insane volatility. For instance, you don’t want to take trades during the ECB press conference or FOMC meeting minutes. If you do so, you are going to hit the stop loss more than 90% of the time. Find a stable market condition, so that you can trade with discipline.
Helps you to find a stable market
Do you know the news factors are the main ingredient to find a stable market? Unless you analyze the news, you won’t be able to know when the market trend is stable. Those who are thinking analyzing news is a tough task is making a big mistake. You don’t have to learn things, just read news articles regularly. In less than a month you will know a lot about the high impact news. At times, you might have heard people talking about the fancy new stuff and you might feel a fool in the group. But if you take the time to read a few articles on Forex news, it’s just a matter of time to become good at this.
News trading is not a tough task. You should never avoid the news factor as a fulltime trader. Believe in yourself and learn this technique to see the visible change in your performance. But don’t try too hard to learn this, just go with the flow.
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