Trading the financial instrument is one of the hardest tasks in the today’s world but if you know how to execute the perfect orders in the market then it is extremely easy for you to live your life by trading. The forex market becomes extremely volatile during the event of the high impact news release in the market and most of the novice traders lose a big amount of money since they try to trade the extreme level of volatility and ultimately fails to achieve success in the financial market. But if you look at the professional traders in Singapore then you will notice that most of them are trading with high reputed brokers like Saxo since they provide extreme tight spread even during the high impact news release. In this article, we will learn how to trade the NFP news release like the pro trader.
Do the technical analysis: The first thing that you need to do is to perform perfect technical analysis before you execute any trades in your online trading account. As a trader, you should always remember that trading is based on major three sets of analysis in the forex market. So if you ignore the technical analysis then chances are very high that you won’t be able to trade the market during the extreme level of volatility. But technical analysis is not enough to secure a stable trade during the NFP news release rather it will give you the possible trading spot in the market. For instance, all the professional traders of Singapore draw the key support and resistance level in the market prior to news release since it allows them to know the possible price reversal zone in the market.
Use price action signal: Price action trading strategy is considered to be one of the most profitable trading strategies in the world. If you look at the professional traders then you will notice that most of them are using price action trading strategy to execute high-quality trades in the market in their forex trading account. But when you trade the NFP news release you should look for price action confirmation signal in the lower time frame in the market since it is one the key method to trade the key support and resistance level in the high volatile market. For instance, you can look for price action confirmation signal in the 5 minute time frame before you trade the NFP in the market.
The risk management factors: Risk management factor is often considered to be the Holy Grail in the forex trading industry. As full-time traders, you will often have some losing trades in your online trading account despite your trading knowledge and experience. So before you execute any trades in the market make sure that you follow proper risk management factors in every single trade since it this will allow you to make money in the forex market even after losing more trades.
Summary: Trading the news is just like catching falling knife. If you don’t know the proper method of catching the knife then it’s very normal that you will hurt yourself. All the professional traders know very precisely how to trade the high impact news release like NFP in the market. If you truly want to become a professional news trader then you need to follow the tips in the articles very strictly. However, if you prefer to follow other systems then you are most welcome but remember the above-mentioned tips are followed by all the professionals in the world, to be precise it’s like a universal rule to trade the news.