During news time, the market moves fast which gives traders with a quick return. That’s why those who are scalpers like news trading. They analyze different news to bring out the best from it. News comes with different impacts. But traders should be careful because this news leads to balance crash maximum of the time.
There are various reasons for analysing news, but in forex, it is very important for traders to go through headlines because forex is a global market, and it has a relation with current events happening in the world. So, for profitable trading being updated with news is necessary.
When we are looking at News based trading we will have to understand whether it is a High Impact news or a Low impact news. In this way we can analyse the news better.
There are many traders around the world who prefer news trading because it carries quick profits for them. But market can move to any direction during news time so proper analysis and forecasting over the market is necessary. Wrong forecasting can lead to balance crash.
If you follow it carefully, you will see a lot of future data is hidden there. Sometimes to keep yourself ready for the future is better than waiting for it sitting hand on hand.
As someone said already, news are catalyst for volatility.
If you scalp on few minute charts you want to know when tsunami is coming 
News can wipe out good scalping trade and take you way above your comfort loss with slippage.
On the other hand you can see markets slow down before news announcement. They get tighter before a blast in one way or another - this may be feasible to straddle the move - set pending buy and sell on range and wait which way it will break. Tried this, couldn’t make it profit for me. But seen guys who are trading like this with success - it’s a matter of experience probably and good tactics.
News treading has become a popular choice recently because the market remain volatile when any news takes place. Traders do like to make the best use of this short-term volatility by making a quick buck. And traders analyze the pre-market conditions take forecast the market’s movement once the news occurs.
Have been pyramiding into NatGas since Russia walked into the Ukraine… Who supplies Europe with 80% of it’s heating gas??.. What could go wrong?
Was already in an uptrend across the middle of the Northern Hemispheric winter…
This video will hopefully make you think about why…
People analyse news because they need to determine whether they are going to sell or buy a currency pair. Although index charts and other tools can determine the rate of a currency pair at the current time, what news does is - it shows the factors that will or might affect the forex market. For example - news such as a war in any country, a crisis or famine in a nation, or a new international industrial project opening up in some country. All of this will affect the currency pairs in some time, probably within a day. Before the changes take place, news helps the trader predict the upcoming trend of a currency pair value, and make decisions according to it.
I feel analyzing the news is a very smart decision. Traders tend to find that to be much more relevant when it comes to deciding the factor in trading. Also, apart from trading, the news can be useful in our lives directly or indirectly because it allows us to be aware of what future course of action we can take accordingly.
You obviously have to aware of news especially day trading but nothing straight forward that why it works
People analyze news to remain in touch with the market volatility. So that they should be able to predict the next move that the forex pairs are about to take and can trade keeping in mind the same thing. With the help of this news strategy, only traders would know when to open or close the position this way.
We all know very well that forex trading is based on various factors all around the world. So, a little change in any sector causes fluctuation in the market. Therefore, people analyse news to determine the market’s trend.
News is important in forex trading as traders who analyse and follow economic news are able to assess its effect on interest rates and monetary policies. Generally, hawkish news tends to push forex pairs up in comparison to other currencies whereas dovish news results in depreciation. Market events like FOMC announcements, economic data releases and earnings from the reports of major companies should always be kept in check.
Analysing news is really helpful to stay updated about the global economic events and learn about their impact on the forex market. This will help a trader to avoid taking up trades that will result in losses. When there is some sensitive situation going on between countries such as war, currency rates tend to fluctuate a lot and if a trader doesn’t get prepared for that they might end up losing a lot of money. So I will say it is better to stay updated with news as ignorance is not bliss when it comes to forex trading.
Economic news will affect the fundamental aspect of forex so it’s a good thing to understand and analyze the important one. Trading economic news like NFP is also a good opportunity to make a profit as it often creates a huge short-term market movement when the news hit.
trading doesn’t exist out of context. as simple as that.
with news you can predict the market-movements. if not predict - then at least be aware of them.
Analysing the news helps traders choose a good strategy to avoid certain risks and losses. It is good to analyse news since the economic releases have a pronounced impact on the forex market.
Analysing news is just a pastime. the actual work in trading should be analysing the charts.
Unless of course you can predict the news. Now that would be a really useful skill.
News analysis is crucial for forex trading. Simply watching the news might not help you that much unless you scrutinise and study it. When you research the news, this analysis helps you interpret it and connect to the forex market. News analysis is as important as signals and price action indicators to determine the future market movements.