Understanding Forex Trading Sessions

The foreign currency market is unique since it operates 24/7. With the advent of 24/7 trading, investors can now place trades at any time of the day or night, regardless of their time zone. However, when it comes to foreign exchange trading, not every time of day is made equal.

There is always a market for the most liquid asset class there is, forex, however there are times when price activity is continuously volatile and times when it is quiet.

Furthermore, different currency pairs display varying activity during specific times of the trading day due to the overall demography of those market players who are online at the time.

This article will discuss the three main trading sessions, discuss the types of market activity that may be expected during each session, and demonstrate how this information can be incorporated into a trading strategy.

How the 24-hour Forex market works

Many institutional and individual traders benefit greatly from a 24-hour forex market since it ensures liquidity and allows them to trade at any time of the day or night. Although currency trading is possible around the clock, a single trader can only keep tabs on a position for so long.

Since most traders can’t monitor the market around the clock, they’ll miss opportunities occasionally, and may even see their positions eroded by a sudden spike in volatility that occurs when they’re not available to protect them.

Since market volatility can affect any trader’s profits or losses, it’s important for traders to recognise periods of high and low volatility and adjust their trading accordingly.

Market activity often peaks during the Asian, European, and North American sessions (also known as the Tokyo, London, and New York sessions, respectively). These terms are used interchangeably because all three cities are considered to be regional financial hubs.

Most banks and enterprises in the respective regions perform their daily transactions, and there is also a bigger concentration of speculators online, while these three super-economies are open for business.

The Asian Session

Whenever the foreign exchange (FX) market regains its footing at the start of the week, all eyes are naturally drawn to the Asian markets. Unofficially, this region is represented by the Tokyo capital markets between the hours of midnight and six in the morning (GMT).

Notable countries including China, Australia, New Zealand, and Russia are also present throughout this time. Because of the dispersed nature of these markets, the start and finish of the Asian session naturally extend over the typical Tokyo hours.

As a result of the time zone difference, the Asian market is typically considered to be open between the hours of 11 p.m. and 8 a.m. GMT. You can learn more about the Asia Session here.

The European Session

Just when the Asian trading hours are winding down, the European session begins its activity. Many of the world’s most important financial centres are concentrated in this FX time zone. To date, London has been tasked with setting the terms for the European session.

The existence of other capital markets (such as Germany and France) before the formal open in the U.K. additionally lengthens the trading period, while volatility persists until after the close, delaying the session’s completion. As such, the standard European workday begins at 7 a.m. and ends at 4 p.m. GMT.

The North American Session

By the time the North American session begins, the Asian markets will have been shut for several hours, while European traders will just be halfway through their day.

The United States, Canada, Mexico, and South American countries all participate in the North American session, although the United States is the session’s undisputed leader. Consequently, it is not surprising that the session’s highest volatility and highest participation rate may be seen in New York City.

How to trade the different Forex Sessions

North American hours effectively begin at 12 p.m. GMT due to the high volume of economic data releases and early trading in financial futures and commodities.

Since there is a significant lull in liquidity between when the U.S. markets close and when the Asian trading session begins, trading in New York is said to end at 8 p.m. GMT when the North American session ends.

There is typically higher trading activity during the overlapping Asian and European sessions, which can lead to greater volatility.

There will be a greater reaction to the Asian/European session overlaps and a less dramatic increase in price action during the European/U.S. sessions’ concurrence if the currency pair is comprised of cross currencies that are most actively traded during Asian and European hours (like EUR/JPY and GBP/JPY).

Regardless of the session in which the pair or its components are trading, the presence of scheduled event risk for each currency will still have a considerable influence on activity.

Trying to enter a trade during a currency pair’s most active hours can result in a bad entry price, missing the transaction entirely, or making a trade against the rules of a long-term or fundamental trading strategy.

Traders who don’t intend to hold positions overnight, on the other hand, depend heavily on volatility.

One of the first things a trader must do when dealing in foreign exchange is to decide whether high or low volatility is more suited to their trading approach. If you’re looking for significant price movement, trading during session overlaps or normal economic release times may be your best bet.

Once a volatility bias has been established, the optimal trading hours can be determined. The next step for a trader is to learn the time frames that see the most action for their chosen currency pair.

5-3-1: A strategy for trading the different Forex Sessions

Foreign exchange (FX) traders can use the tried-and-true 5-3-1 trading strategy as a simple framework from which to build the most effective trading approach according to their individual needs and preferences. Since there are so many currency pairs to choose from and since trading occurs around the clock, the 5-3-1 method is very useful for novice traders.

Here’s how it works:

1. Choose 5 major currency pairs

Only five major currency pairings should be your primary focus when employing the 5-3-1 trading method. Pick currency combinations based on the one or two major currencies you have the most experience with.

We’ll get to the phase of the method where you choose your pairs based on their busiest trading times in a little.

You can learn a lot about the behaviour of pairings by concentrating on only five of them.

2. Use 3 primary trading strategies

The next step is to settle on no more than three distinct trading strategies. Any combination of trading approach and technical analysis indicators above this cap will result in reduced profitability.

By narrowing your trading plan to only three techniques, you may do technical analysis using only the timeframes and indicators that are most relevant to your trading style.

It also prevents you from getting confused by employing too many indicators, which can lead to confusion if they start to contradict each other and show confusing signals.

3. Trade at 1 session each day

The 5-3-1 method advocates for a single daily trading window. The fact that the Forex markets operates around the clock is a major selling point. All-hours trading provides access to a large pool of buyers and sellers at any time of day.

In contrast, if you don’t check in on your trading account regularly, you risk missing out on profitable trades or being caught off guard by unanticipated market fluctuations.

The best time to trade depends on the activity level of the currency pairs you intend to trade. The foreign exchange market is typically broken up into three sessions: Tokyo, London, and New York. You can probably tell just by looking at the titles of the pairs which currencies are the most actively traded during each session.

The third element of this strategy is to choose how often you will check in on your deals. However, this is also the most important time for you to put your trading plans into action. You will be unable to follow your trading plan if you log in to trade a currency that has low liquidity at that moment.

Final Thoughts

You, as a trader, must decide when is ideal to enter or exit a market. In terms of trading styles, time zones, and your own availability. For example, the Asian trading session is ideal if you want to aim for a small number of pips in a somewhat stable market.

If you’re looking for large price swings and significant volatility, though, the London session and the New York open hours are your best bet.

However, if you’re free to trade whenever you like, experts agree that the overlap of trading sessions is the greatest time to make transactions. Trading occurs when people from all around the world’s financial hubs are present. There is adequate volatility, and numerous assets can be traded with ample liquidity and tight spreads.

More Resources:

Forex Trading Webinars and Training Material

Forex Brokers with the Best Customer Service

Brokers that Allow You to Trade News Releases

Forex Trading webinars and training material

Learning the fundamentals of forex trading, becoming familiar with a variety of methods, and developing a solid grasp of the psychology of trading are all greatly aided by a solid education in the currency market.

That’s why educational resources like forex trading webinars exist to begin with. Most brokers that offer free educational resources for their customers also host free webinars. Clients benefit greatly from the webinars because of the information they provide on forex trading.

Through visual demonstration and coaching from industry leaders, they aid traders in locating a wealth of solutions to crucial queries. The great thing about webinars is that anyone, regardless of where they happen to be, may participate. Moreover, there is a wide range of topics covered in free webinars, making them potentially useful for both novice and seasoned traders.

The majority of these courses are self-paced and feature resources including video lectures, webinars, simulated trading platforms, discussion forums, and one-on-one guidance from instructors.

When they feel comfortable doing so, students can put their newly acquired information to use in actual trading.

With this in mind, we explore the best Forex webinars and trading materials offered by leading, regulated Forex brokers.

1. Khwezi Trade Free Forex Education

For anyone interested in learning the fundamentals of foreign exchange trading, Khwezi provides free education.

Risk management, trend and channel analysis, and indicator use are just some of the fundamentals that that the broker’s educational courses are meant to instil in any trader.

Khwezi understands that anyone can learn to trade the Forex market successfully with the correct training and instruction, and so offer a tiered course for beginner, intermediate and advanced Forex traders.

The beginner Forex course from Khwezi Trade includes such pertinent topics as risk management, trend analysis and SR & RIB. Once these fundamental concepts have been covered, traders can then move on to the intermediate course.

Here, intermediate traders will learn how to analyse trendlines, channels and breakout trading, showing students how to draw trendlines, as well as the immensely rewarding breakout trading strategy.

The advanced Forex trading course covers stochastic oscillators, of which there are hundreds available on the Khwezi Trade platform, as well as the MACD oscillator, which gives traders greater insight into the overall strength of a particular trend.

Khwezi Trade also provides a fantastic selection of video tutorials, which include technical information on using the MT4 platform, trading basics, introductions to Forex trading and Forex analysis, candle patterns, risk management and more.

2. ForexSignals.com

The seven-day trial at ForexSignals.com is just the icing on the cake of a comprehensive package that also includes a thorough instructional course, access to expert trading tools, and continuing professional guidance.

ForexSignals.com’s mission is to educate its clientele in the art of currency trading via the website’s exclusive trend-analysis and signal-generation methodology. Professional traders who trade using the same information they teach with reinforce both the knowledge and instruction they provide.

Beginning traders should start with the Trading Academy’s training courses taught by seasoned professionals in the Forex market. More than three hundred and fifty clips are available. The material begins with an introduction to trading and progresses into more advanced, technical topics.

The Trading Room serves as a chat room where students can discuss and demonstrate their trading techniques, helping to reinforce their education.

Also, students can watch live streams of professional traders’ sessions to learn from their strategies and tactics. Members can use our Profit Calculator and Monte Carlo Simulator, two of our exclusive trading tools.

3. Traders Academy Club

TAC was created by Vladimir Ribakov, a licenced financial technician recognised worldwide, to serve as a comprehensive resource for investors of all skill levels.

The Media Zone provides students with access to hundreds of recorded webinars suitable for both novice and seasoned traders. Live Trading Room recordings are included, as well as recordings of trading simulations and analysis videos.

Vladimir, the instructor, is available around the clock to answer students’ questions and the chat room is always bustling with activity. Weekly live webinars are also provided.

The daily online viewing of live trading sessions is the most well-liked part of the training. Students receive Forex indications and in-depth analysis during the sessions, with each trade recommendation dissected in great detail.

4. Asia Forex Mentor

Asia Forex Mentor’s website boasts many grand promises from the company’s creator, but we found consensus on one: his course is one of the most comprehensive option for learning Forex.

There are 26 comprehensive classes in total, each with more than 60 individual topics covered in high-quality internet videos shot in a professional studio. Ezekiel has carefully selected examples and provided his own views for each session.

The Golden Eye Group is another great private programme that members have access to for a fee. Insiders can watch live streaming of Ezekiel’s weekly market analysis, in which he explains and interprets trading setups and shares his trading strategies.

5. Daily Forex Academy

An internationally renowned expert in the foreign exchange market (FX) conceived and funded the development of FX Academy, which features content produced by some of the industry’s most respected traders and is available at no cost to traders of any skill level.

Established in 2016, FX Academy is an initiative of DailyForex.com, a reputable and authoritative Forex website that has been publishing daily Forex news and analysis since 2006.

The aim of FX Academy is to equip traders of all experience levels with the knowledge and tools they need to succeed in the Forex market.

There are 15 different courses available at FX Academy, covering everything from an introduction to forex to advanced trading strategies. An animated film, some reading, and several tests make up each lesson. Students can work through the material at their own leisure, as the course is self-paced.

The organisation also offers Strategy Simulations, which replicate real-world market scenarios and trading scenarios so that students can learn by doing.

FX Academy’s library of instructional resources and trading tools is available to you at no cost. Your time is the only thing required of you. However, you won’t get the personalised attention from a tutor or the ability to practise in a real-time trading room that you would in a paid course.

6. Six Figure Capital

Six Figure Capital’s 14-day course packs a large amount of information into its material without overwhelming you, making it ideal for beginner to intermediate traders who seek a total immersion experience in learning to trade.

Participants of the 14-day course can expect to master the basics of trading as well as advanced strategies in a condensed time frame. There are 19 films total, one for each day of the two-week period.

To help students learn by doing, the course incorporates live trading sessions. Also included are supplementary resources like electronic books and Excel spreadsheets.

Six Figure Capital also provides a Slack channel where novice and seasoned traders can talk to one another and share their thoughts and findings.

In order to learn how to trade with Six Figure’s unique harmonic pattern software, students must first finish the 14-day foundational course. The 14-day programme automatically includes this class.

Both payment options grant students unlimited access to all available courses and resources forever, as well as free lifetime updates and customer service.

Why Forex education matters

Before investing time, energy, and money into online forex trading, it’s crucial for new traders to have a firm grasp on the basics of what it entails. Trading foreign exchange (Forex) online is the practise of executing trades in currency pairs via an online forex broker.

Forex tradinf refers to the practise of buying and selling a currency pair for the purpose of making a profit from fluctuations in exchange rates. Exchange rate fluctuations are the source of Forex trading’s profit potential.

Since there is no centralised market for currency, all transactions take place electronically, over-the-counter, through our website or mobile app. Trading is available 24 hours a day, 5 days a week.

If you want to trade professionally, you should probably enrol in a solid Forex trading course. Before spending a lot of money on a trading school, you can get more out of your time by taking advantage of one of the many free online courses available to get you up to speed, such as those available from Khwezi Trade.

Is Forex trading for me?

People interested in making extra money at home find forex to be appealing.

Forex trading has several benefits, including cheap capital requirements and simplicity of entry into the market, for those who are ready and able to dedicate themselves to studying the ins and outs of it. It does provide the chance to make money, either part-time or as a career, for those with a strong knowledge base and the capacity to control their emotions.

You might be a good fit for Forex trading if you have the necessary education and expertise, as well as the perseverance and self-control to learn from your failures.

However, forex trading might become a losing nightmare if you don’t have the time or desire to dedicate to a rigorous learning process.

More Resources:

Understanding Forex Trading Sessions

Forex Brokers with the Best Customer Service

Brokers that Allow You to Trade News Releases

Forex Brokers with the best customer service

Investors may quickly get a sense of the relative merits of different brokers by comparing their costs, the types of assets they offer, the accessibility of their trading platforms, and the convenience of their various deposit and withdrawal options.

These are all crucial factors to think about, but it’s also important to select forex brokers with excellent customer service. In practise, customer service is equally crucial, if not more so, than these other factors. Khwezi gets a very high score on all these factors.

When trading, problems can arise, and you need to be able to get in touch with customer service as soon as possible. A reliable broker will provide you with multiple ways to get in touch with them.

Also, they need to be available whenever you have questions or concerns; many assets remain active even on weekends, so you can’t afford to be waiting around for a response. A more positive trading experience can be had when dealing with a broker who is quick to respond to any questions or concerns.

How to compare customer service from a Forex broker

Operational hours

A few brokers may only be available during the week, while others may be available 24/7. Clients trading assets and markets that are open on the weekends, like cryptocurrencies, benefit greatly from 24/7 service because they can swiftly resolve any concerns that could result in financial loss. But this isn’t the last word either.

Round-the-clock customer service may not be worth much if all the assets you trade (forex, equities, ETFs) are closed on weekends.

Customer service experience

The best Forex brokers will employ support staff members who are experts in their field. If your customer support team is well-versed with the company’s inner workings, the financial markets, and the services on offer, they should be able to help you out whenever you run into any issues.

Multilingual support

The amount of languages offered should also be considered, especially if you have a global clientele. The broker must be able to effectively assist customers in all of the places in which they do business.

If you want to make things easier and less frustrating for yourself, you shouldn’t have to worry about understanding what’s being said.

Available contact methods

The finest brokers in terms of customer service will give you multiple ways to get in touch with them.

There needs to be a balance between passive and interactive approaches. People who are already pressed for time at work can react to customer care communications at their convenience via non-intrusive channels including email, text, and online contact forms.

It’s also helpful to have the option of real-time communication like phone calls and online chats. As information and data can be gained from live chats, this is especially helpful when the issue is not clearly stated, allowing customer care to more easily resolve the issue.

Forex brokers with the best customer service

1. Khwezi Trade

Khwezi Trade, founded in 2013, is a South African broker authorised by the Financial Sector Conduct Authority (FSCA) as an FSP and ODP that offers low deposit ZAR accounts and fast trade execution.

When compared to competing brokers, Khwezi Trade’s customer service is second to none, offering South African traders with friendly, professional and multilingual support.

From Monday through Friday, 7 a.m. to 6 p.m., Khwezi Trade offers email, phone, and call-back services for its customers. Apart from offering a live chat option, questions are also handled via email. Five official languages are supported (that’s English, Afrikaans, Zulu, Sotho, and Xhosa) should you need any assistance.

Khwezi Trade provides exceptional service to its customers by promptly responding to their inquiries and providing them with a highly customised trading experience.

With a minimum deposit of 500 ZAR and spreads starting at 0.7 pips on the EUR/USD, beginners can open a commission-free ZAR account with Khwezi Trade.

There is a low minimum deposit of 50 USD required for its USD account, and spreads on the EUR/USD go as low as 0.1 pips with no commissions. Both new and seasoned traders can benefit from the assistance of a dedicated account manager, no matter which type of account they choose.

In sum, Khwezi Trade is a good option for South African traders searching for an MT5 broker because of its inexpensive trading expenses, personalised customer service, and ZAR trading accounts.

2. AvaTrade

When compared to other brokers, AvaTrade’s customer support stands out as particularly helpful.

Help is available around the clock for bitcoin and CFD trading. There is a local South African phone number, as well as international and multilingual email and chat support.

For good reason, AvaTrade is considered among the world’s top brokers. It provides numerous trading venues, such as the acclaimed AvaTradeGO mobile trading software.

Trading Central is only one of many powerful trading tools available, and the site’s analytical and educational resources are among the best in the industry.

As a broker, AvaTrade’s fees aren’t the lowest available, but most traders will find them to be within a reasonable range.

3. Pepperstone

Pepperstone, an Australian broker that debuted in 2010, is widely recognised for its competitive trading fees and wide selection of supported platforms.

Although not the most comprehensive, Pepperstone’s education section is nonetheless a decent place to start for novice traders thanks to its professionalism and organisation.

If you have any issues about your account or trading, you can contact Pepperstone’s award-winning customer care team at any time.

Pepperstone is a trustworthy Forex broker due to their extensive list of accolades, international clientele, and regulation by some of the world’s most stringent authorities (among them the Financial Conduct Authority and the Australian Securities and Investments Commission).

4. Forex.com

Forex.com was established in 2001 and is a well-regulated broker with minimal fees and high minimum deposits, making it ideal for both novice and seasoned traders.

Customer service is available via phone, email, and live chat around the clock (from 10 a.m. to 5 p.m. Eastern Time, Sunday through Friday) like with most brokers.

Although English is the default language for customer service, support in Arabic, Ukrainian, Polish, Russian, and Chinese is also accessible. The Forex.com staff encourages participation on social media, so you can connect with them there as well (through Facebook and Twitter).

5. IG Group

Founded in 1974 and regulated by the FSCA since 2021, IG is known for its extensive list of satisfied customers, inexpensive trading costs, and wide variety of trading instruments. The IG help desk staff is professional, quick to reply, and available anytime.

From 8 a.m. Saturday to 10 p.m. Friday, customers can reach help by phone, email, Twitter, and live chat.

Beginner traders who have questions regarding the platforms, analysis, or trading ideas may find the peer support platform to be a perfect extra resource, as it provides assistance from both other traders and IG personnel in a forum discussion.

6. eToro

eToro is still widely recognised as the best social trading platform available. Copy trading and eToro’s social network are at the centre of the user-friendly trading platform. Beginners who lack experience trading may prefer these functions.

eToro’s multilingual customer service team is available around the clock, seven days a week. Tickets have been utilised for all customer service inquiries since 2017. Warning: there is no live chat or phone assistance, and the wait times for answers can be up to 14 days.

Customers that invest more than $5,000, however, will have access to a personal Customer Success Agent.

7. FXCM

High-volume traders that value having access to a diverse selection of trading platforms and a substantial toolkit for advanced trading may be interested in FXCM.

Trading Platforms Offered by FXCM Include: MT4, NinjaTrader, Numerous Advanced Specialty Platforms, and Trading Station, FXCM’s Own Award-Winning Proprietary Platform. In addition to this, it provides a multitude of trading tools, such as a variety of API trading tools, TradingView, Zulutrade, and a whole host of FXCM apps.

Support is offered around the clock through a variety of channels, including live chat, phone, email, and walk-ins.

Support is offered in a total of 19 different languages, and residents of 42 different countries are eligible to receive free phone support from FXCM. In addition to this, the customer care is knowledgeable, and they offer supplementary reading material when it is applicable.

Final Thoughts

Finding the brokers with the finest customer service is one way to make the overall experience of trading much more enjoyable.

It is essential to have a support team readily available at all times, regardless of the severity of the problems that you may experience, even if they are quite minor.

The finest brokers have a supportive team that is knowledgeable about all aspects of the brokerage and is available to assist you around the clock.

Because of this, the support personnel should always be courteous and helpful to their customers, as this results in a far more positive trading experience. When you are having problems that could end up costing you money, the last thing you want to do is have to deal with unhelpful support employees.

More Resources:

Understanding Forex Trading Sessions

Forex Trading Webinars and Training Material

Brokers that Allow You to Trade News Releases

Brokers that allow you to trade news releases

When you engage in news trading, you are purchasing or selling a foreign currency either immediately before or immediately after a significant economic announcement has been made public. Why?

Because after such statements, it is reasonable to anticipate that market prices may fluctuate, which means they will either rise or fall. Your objective, of course, is to make a profit off of these changes in price in a straightforward manner.

Any currency pair has the potential to see very rapid price movement in either direction within just a few minutes before or after the announcement of economic news.

A technique known as “news trading” is one that aims to capitalise on opportunities that present themselves in the markets whenever pertinent economic data and information is reported in the mainstream media.

During each and every trading session, economic news and data are one of the primary factors that can cause significant price shifts or volatility. This indicates that news trading offers consistent possibilities for trading, despite the fact that these opportunities are not devoid of associated risks.

The news market is mostly driven by events, and as a result, trading based on the news presents some unique challenges when compared to traditional technical and fundamental approaches.

In technical analysis, the belief is that past price action will influence future price behaviour, with the assumption being that all essential information about the value of an asset is reflected in its current price.

Technical traders constantly monitor the market and base their trades on observable patterns in the charts, as well as mathematical indicators.

On the other hand, fundamental analysis entails evaluating all of the underlying economic, social, and political aspects that have an effect on the value of a specific asset.

Although news trading is often considered to be a fundamental subset of fundamental analysis, it does have certain distinct characteristics of its own.

In this article, we explore some of the best Forex brokers which allow for news trading, and take a closer look at how to trade the news successfully.

Best news trading brokers

1. Khwezi Trade

Khwezi Trade was established in 2013, and is a local South African broker that is regulated by the FSCA. It features minimal deposit ZAR accounts, rapid trade execution, and a reputation for putting the customer first when dealing with traders.

Every customer of Khwezi Trade receives a daily email with Flexi analysis from a 3^rd party, and the company also provides its customers with access to a portal that displays fundamental analysis of all currency pairs.

2. FXCM

FXCM has been in operation since 1999 and has its headquarters in London. FXCM’s no-requote policy makes it a good option for news trading.

For a Mini account, their lowest spread is about 1.5 pips, while for a Standard account, it’s at least 0.5 pips plus an additional commission of 0.04 USD every 1000 units.

As opposed to several other brokers, FXCM does not use MetaTrader 4. Instead, they support Trading Station, an internal platform that can be customised with a number of add-ons and indicators.

3. InstaForex

Since InstaForex’s spreads are fixed at roughly 3-7 pips, even when the market is extremely volatile due to news releases, it may be a good choice for news trading.

In addition to the well acclaimed MetaTrader 4, MetaTrader 5, and InstaForex’s proprietary WebTrader, InstaForex provides its clients with a wide selection of trading platforms from which to choose. They also provide the convenient One-Click-Trading (OCT) function as an add-on.

However, there are several factors that you need to be aware of regarding news trading in InstaForex. The first point is that during major news events, profits cannot exceed 10% of the account balance, and the position must be open for at least 5 minutes before being closed.

To prevent misunderstanding and blunders during news trading, InstaForex gives a basic overview of this particular approach in a collection of forex articles and its trading education area which beginners may take advantage of.

4. XM

Orders placed with XM are guaranteed to be executed within 1 second, there will be no requotes, and the spread will be incredibly low.

Micro and Standard accounts have floating spreads beginning at 1 pip, while the Zero account has no spread at all. XM not only permits news trading, but also provides numerous alluring promotions including signup bonuses, trading competitions, and initial deposit incentives.

Top tips for trading the news

The news can be broken down into two categories: regular and unexpected. General elections, quarterly earnings reports, and announcements of economic statistics such as interest rates and jobless rates are just some of the events that are planned.

An economic calendar, news feeds, and even social media can be used to keep tabs on upcoming developments.

The majority of news trading methods revolve around anticipating and reacting to scheduled events, and traders can reduce their exposure to risk by keeping tabs on when those events are set to occur.

The opposite is true with unexpected news, which consists of happenings that are so unexpected that they can catch investors and traders off guard. The timing and magnitude of their effects are unknown.

Events like the 2008 financial crisis and the predicted coronavirus pandemic in 2020 fall into this category.

Because it is impossible for traders and investors to tell when the panic-inspired short-term impact will finish and the expected long-term correcting move will begin, sporadic news is a major source of risk in the market.

Find trading opportunities

The goal of news trading is to consistently take profitable positions. In other words, your transaction coincides with the market’s reaction to the news. Trading is possible before, during, and after the announcement.

If you trade in anticipation of an occurrence, it shows that you have a directional bias and, if you’re correct, you’ll profit. If you’re incorrect, however, you could lose a lot of money.

Trading at the time of a news event’s announcement can be wise because you’ll be basing your decisions on accurate information.

There is no assurance that prices will move in the direction that an actual news release implies, and spreads tend to increase as news events are released. It’s smart to do trades after a news release so you can observe the market’s reaction first-hand.

Keep track of the news event

You can only profit from news trading if you are aware of the specific types of news that affect the asset you plan to trade. The Economic Calendar is a useful tool for keeping tabs on upcoming news events, and it’s even better because it also shows how much of an effect those events are anticipated to have on the underlying asset.

Include technical analysis

Using technical analysis in conjunction with news trading can lead to substantial gains. If you want to take advantage of a news trading opportunity, you need to keep an eye on the crucial technical characteristics of the underlying asset.

You should know the underlying trend and key support and resistance levels that will act as price objectives for take profits and stop losses before the news is released. Before, during, and after a news event, technical tools like moving averages, pivot points, and even oscillators can assist traders find value pricing zones to target.

Final Thoughts

It is vital to deal with a reliable broker like Khwezi when trading the news. Many factors, including the broker’s compliance with legislation, features, and quality of customer service, should be considered before settling on an account with them.

But apart from that, a savvy trader will be aware of the importance of having a broker who can keep up with their trading strategy and help them achieve their goals. To be successful, traders need to prioritise conditions in accordance with their trading strategy.

Foreign exchange (forex) news trading refers, in a nutshell, to making currency transactions in the forex market in response to trading opportunities presented by economic news announcements. An unexpected piece of news has the potential to drastically alter the market’s valuation in a hurry. Many investors play the markets because of the high volatility and short trading cycles.

In order to capitalise on this trend, traders must have access to both lightning-fast execution and adaptable market circumstances. At this juncture, the quality of the broker’s service becomes critical. It’s possible that your broker isn’t ideal for news trading if your trade orders are constantly being requoted when major news is released.

More Resources:

Understanding Forex Trading Sessions

Forex Trading Webinars and Training Material

Forex Brokers with the Best Customer Service