How would I know what news to look for and how would it effect the market?
News can cause great volatility in the market and it is often not logical. I.E positive news causes a negative reaction in price.
Moves caused by news very often are just a short term spike and price comes right back to where it was. This puts you at a high risk of being stopped out only to have price go back in your direction if you are trading smaller time frames.
If you want to know what news to look for just type ‘economic calendar’ into google and pick any site. It will show all the data to be released. No one knows for sure how the news will affect the market. To have a rough idea you need to know what the central bank is expecting or aiming for. Then what the market is expecting. Then how they think it will affect the currency pair. Then what the actual data is. You have to study everything to have a chance with trading fundamentals. Good luck.
1 Like
You really should know much better than simply locate how the news will affect some currency or something like that , you need to know how it affect and which currency pair, it’s quite uncommon knowledge and you will never meet it in some guru ebooks about how to trade it.
I’ve seen a lot of forum members here recommend the Forex Factory calendar. 
Yes, Forex Factory calendar is one of the best one for this purpose. You can also use calendar on Investing, it has a bit different appearance, but the news are almost the same.
It is important to remember that some of the events announced before, so market participants can form their expectations and acct accordingly. The abovementioned situation when prices fall despite positive news could take place in case if other market participants expected better results and the price got overheated. Such situations could sometimes offer great trading opportunities for short sellers (keep in mind that shorting overbought intstrument on positive news is a very risky tactic, so make sure you have experience in it).
In most of the cases the best solution would be to let the other players to form the movement and then try to join it with the best possible risk-reward ratio, while it is better to avoid huge volatility during the first hour. If the news a really important, they will act as a catalyst for strong trend movement that can last even for several days. That is why it is no need to hurry and jump into the position during the first minutes since the probability of being stopped out is very high.
1 Like
There is a group of news you have to watch as such released may hit all SL you have without hitting any TP. With slippage up to 30-40 pips for pairs like GBPUSD. Over the last couple of years, we checked the market news impact on different currency pairs. Some were extremely influential. If you trade any currency pair with USD in it (and most likely EUR, CHF and GBP), then you will definitely have to check the following news: NFP (Non Farm Payrolls + Unemployment rate) US delivered on the first Friday of a month; FOMC Minutes, Interest Rate Decision (for every currency you trade USD, EUR, GBP as the most volatile ones); GDP results MoM, YoY, Retails Sales, CPI. Sometimes a “central bank’s” governor (a regulatory body may be called otherwise, e.g. Bank of England but the overall idea is the same) speech may move a currency pair by 50-100 pips. Watch closely events like Brexit, US Elections as well. All news releases are available among many economic calendars.