Traders closely follow the major news because of their ability to move the market. The news can be easily monitored using an economic calendar.
Depending on the circumstances and trader’s preferences, major news can be traded before, during or after their announcement.
Traders who prefer less volatile market conditions and who are unwilling to take high risks usually trade major news before their announcement, attempting to make a profit by trading ranges or trading with the trend.
On the contrary, some investors like to trade during the news release, when the market is the most volatile. While it can turn out very profitable, this strategy requires a well-developed strategy as well as great risk management.
Finally, trading the news after the release is also a good strategy as the market often gives indications on its future movements through price action.
You need to be a member in order to leave a comment
Sign up for a new account in our community. It's easy!
Already have an account? Sign in here.