Makes a lot of sense if you have done that research into it, thanks for forwarding it over fully understand your logic behind it now 
Decrease lot size and widen stop losses, itās a recipe for passing market storm caused by high-impact news. Learning how to trade pullbacks after news, using correct lot size, stop loss to maximise profits is a good way to find your edge.
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Thatās a really good suggestion. Will surely use that.
Fundamental analysis is important at the time major economic news release markets become very volatile, so if you have done good fundamental analysis you will be able to place your trade carefully.
Most of my forex trades have been based off D1 charts, primarily trend-following. On this scale, its not common for fundamental announcements or news to have a major negative impact on my positions.
I donāt quantify these things, but it could be the reverse - fundamental events that move prices are generally positive. As they say, bad news comes out of downtrends while good news comes out of uptrends.
As for me, I tried trading the economic calendar, but I didnāt do well with it. Iād wait for different reports (besides NFP) and I didnāt see any action.
So, now I just watch for major news. I subscribe to several networks on my phone and I keep an eye on headlines.
For example, when the Prime Minister of Japan quit, USD/JPY went down. So, I closed my long position and went short. Fortunately, I wake up early and got a decent entry.
But, when Trump got COVID the market didnāt react, as far as I saw.
Regardless, I keep watch on the news.
Econcomic Calender can be useful for the major events, to be honest, but other than that, you can always check on other sources like major news, articles, etc.
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Yes, keeping the risk to a minimum is the best way to go about it.
There is no need to panic when some big news releases. You still need to stick to your trading plan.
The biggest part of traders should be acquiainted with fundamental analysis I think. This analysis uses the economic conditions to predict the future price of a currency pair/maybe stocks. So, fundamental traders use events such as growth rate, interest rate, unemployement as indicators to predict future price movements. News plays a big role here because itās a kind of source for stated above indicators. You can analyze the price movement due to news, because in news we can find an information about employment data (employment change for example), economic data (GDP, CPI), and we have to watch for policymakers and speakers (trumpās speech for example). These factors influence the market thus you are able to foresse what will be happening with currencies, stocksā prices and so on.
Fundamental trading is a strategy of determining which stock to buy and when to buy it by focusing on company-specific events. Fundamental trading, as opposed to short-term trading, is more closely associated with a buy-and-hold strategy. Thereās no reason to be worried when major news breaks. You must continue to follow your trading strategy.
What were the most dramatic negative news issues to impact the financial markets in the last 20 years?
9/11 would be one, the Swiss National Bank unpegging the CHF against the EUR in 2015 would be another. In stock market terms, these severely bad news items emerged into downtrends. At both points in time, no traders should have been long against the trend.
Well, your tip is probably worth trying, but this tactics doesnāt really eliminate the risk to the full.
Like you said it yourself that there are the chances of occasional fluctuations are still high. THere can be the situation when the stop loss closes the deal and the price keeps on going to the same direction after a moment. So, the thing Iād like to say is that there are always certain risks on the markets and they increase during the periods of high volatility which was brought about by the fundamental factors.
Fundamental analysis can give lots of insights on trading, however, it can alos confused a trader especially if he doesnāt know how to use it in the most efficient way.
Fundamental analysis is quite a disoutable thing in forex. I for one, find it extremely hard to implement in forex market as there are so many sorts of news which cam influence the market this or that way. I do really think that a trader should be an experienced professional in analysing the news if he wants to base his trading decisions on the factors which are outside the charts. That is why, I feel that it is better to wait till the time when the market goes back to the normal situation when it is not affeced by some strong news as the news bring about volatility which is rather hard to predict. If you are a follower of technical analysis, stay away from the periods of high volatility if you donāt know what it stands for.
I think that the first step for a trader to learn fundamental analysis is trading NFP. Perhaps, that is one of the most predictable fundamental thing as it happens regularly and there is lots of different kinds of resources which are aimed at clarifying the essense of this event and its analysis. I try to learn this matter because of the fact that I know that it is possible to earn quite a lot of pips within relatively short period of time.
I wouldnāt say that it is all about aggressive or conservative traders to trade on news, but it is all about the traders who know how to make fundamental analysis and those who prefer to rely only on technical one.
There are lots of conservative traders who pay their attention to the news but their knowledge made such actions more or less safe. Personally, I have no idea how people manage to base their trading decisions on the news, especially when we talk about trading forex. There are so many fundamental factors which can influence the market this or that way. More than that, some of them may affect the prices not immediately but after some period of time. The weirdest thing about this is that experienced traders can anticipate such effects and make their trading decisions accordingly. That is why, I concentrate only on technocal analysis in most of the cases just to stay away from the risks that I cannot even calculate.
You can also trade CPI or ECB meeting however the impact is less predictable. Also covid news can have impact but only when they may have serious repercussions like the news about the new covid strain
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