mortagesandforeclosures

by Hass67

Unlike stock markets, forex markets are open 24/5 except on the weekends. There is a continuous price action all day in the currency markets. Do you know this fact more than 90% of forex traders are speculators?

Forex markets have the tendency to react violently to the release of economic and socio political news. You cant predict when important sociopolitical event will be breaking news.

But economic news release like NFP figures every month, the housing sales number, FOMC meeting etc all are known before time. Just Google Fundamental News and you will see lots of websites that provide this service.

These sites will give you the day and time when a major economic announcement is going to be made. Non Form Payroll (NFP) figures have recently become very important for USD pairs especially after the start of the recession.

NFP figures are released at 8:30 AM EST on the first Friday of each month. Currency pairs like EUR/USD become very violent just after the release of these figures. EUR/USD can shoot up sometime by 50-100 pips in 5-10 minutes.

Markets will mostly stabilize within a few hours after the release of fundamental news unless it is of such a fundamental nature to form a new trend in the market.

Forex news trading is ideal for those traders who like a lot of action within few minutes. Here is one strategy that you can use.

Suppose you want to trade EUR/USD. Enter both buy and sell orders at 10 pips above and below the price of EUR/USD just a few minutes before the announcement of NFP figures.

Put stop loss of 10 pips for both the orders. Put take profit of 40 pips on both orders. When the NFP figures are announced, EUR/USD will usually react violently and either shoots up or down.

Suppose it goes up by 10 pips, buy order will be triggered. Suppose EUR/USD jumps by 60 pips. Your position will be closed at 50 pips when you have reached take profit of 40 pips. Isnt it nice you made 40 pips in a few minutes?

If EUR/USD goes down by 10 pips, the sell order will be triggered and you will still make 40 pips. However, sometimes the markets have a tendency to whipsaw. Practice this on your demo account first and make ten successful trades before going live.

About the Author:

Mr. Ahmad Hassam has done Masters from Harvard University. He is interested in day trading; stocks and forex. Download Forex Scalping Cheat Sheets. Discover The Best Forex Signal Service! Read about Trend Forex System.

Get all the information and photos:: http://mortgagewide.info/forex-economic-news-trading/