hi everyone, and new here and I was wondering if I could get some help in understanding how to trade the news. my question is supposing a news comes out and its either strong or weak for the currency how do I react to that?. am asking this question because I have realized when the news comes out and I move to the platform to trade, the move would have started long before me and as I result I would be left behind. thanks in advance.
Any important economical news (for FX it is mostly periodical releases from government financial or analyzing bureaus) contains information about positive or negative change from it’s previous value. Changes to better means strengthening of a country’s economy and thus it has a favorable reflecting on currency too. It’s supposed that news trading is possible only based on leading indicators, as they have profound potential to move the Fx market rather than coinciding or lagging indicators. Well-known leading indicators triggering consider market moves are Manufacturing PMI, GDP and Unemployment rate (Non-Farm payrolls for US).
For retail forex trader who doesn’t get involve sophisticated scalping software nor doesn’t have real time (no-delay) Bloomberg or CNBC data feed at disposal it’s very difficult to vie with professional traders for getting their orders filled if tried to enter AFTER economic indicator come-out. Highly predictable candle triggered by release of important news (for example NFP) is usually very small and usually subside in less than 1 Min. Trying to enter this time will likely have your order affected by substantial slippage, means getting order filled to the end of the trend. My last trade on NFP at 6 Feb had 8 pip slippage on Hotforex, although I entered almost maybe 30 second before release.
So the only possibility to profit from news trading is to enter some time before news release, but without knowing news outcome it boils down to gambling. But it’s still manageable to try to forecast those digits based on open information, but you’ll probably need to chew not a one ton of economical data to get gaugeable results.
Nobody said FX profit goes with no sweat 
SO much interesting info… i ll try to understand…
No I would say - just stay away from the news. Youll be much happier and more profitable. Also before big news always put your stop to breakeven or close existing positions
I second Babypipsvit, avoid trading the news and focus on reading the chart patterns forming afterwards.
Trading the news is also dangerous due to the fact of stop loss hunters, big institute traders which can “fake” move the market to trigger the ackumulated mass of stop losses before the market heads the way fundamentals are aiming.
My opinion how to trade the news? As others stated above, “don’t”…learn price action and let that be your guide.
Trading news is harder than it may sound,I wouldn’t recommend it for a newbie, would go with Currency Analysis,Price action, and day trading strategy.
But to answer your question
my question is supposing a news comes out and its either strong or weak for the currency how do I react to that
Read this article,I find it very useful : Which News Releases Should I Trade For Forex?