Taking the trades during the volatile state of the market is a very challenging task. The rookies always love to trade the key news as it provides them better profit-taking opportunities. But they forget the fact, dealing with the volatile state of the market is a very complex task. It is better to trade during the stable state of the market for the first few months.
So, how do we learn to trade the major news? Is it possible to secure big profit by trading the high-impact news? The simple answer is YES. In this article, we are going to give you some amazing tips which will build your confidence to trade high-impact news.
The severity of the news
Before you take any trade, you need to know about the severity of the news. The high-impact news is hard to trade as the market is extremely volatile. But if you learn to evaluate the candlestick pattern, you can easily improve your trade execution process. Before that, you have to know about the critical dynamics of this market. Instead of starting to trade the high-impact news, you need to trade the medium and the low-impact news. Get yourself comfortable with such a news event by using the demo account. Once you have the basic idea about the price movement, you need to move to the next phase.
Learn price action trading strategy
To trade high-impact news, you must learn to deal with the price action trading strategy. The price action trading system provides a better opportunity to the retail traders. But you might get confused seeing the different candlestick patterns and this very normal. Learn about the single candlestick pattern and look for the potential trade setups in the higher time frame. Once you become extremely skilled in evaluating the candlestick patterns, you have to study multiple time frame analyses. By using the multiple time frame analysis, you can easily protect your trading account from the false spike and execute high-quality trades.
It’s true, fx trading Australia is very popular, but only a small percentage of the retail traders are successful. To be in the successful trader’s group, you must learn about the price action trading strategy.
Focus on risk to reward ratio
The novice traders often ignore the importance of risk management policy. They keep on using the aggressive method and loses money. But to protect the capital, you need to use advanced risk management techniques from the start. Rely on the long-term goals and try to focus on the simple price pattern. Trade the market with a 1:5 risk to reward ratio. Securing such a decent risk to reward ratio in the trades will not be tough as you will take the trades during the high-impact news. Never use the regular risk to reward ratio while taking the trades in this market.
Trade with discipline
To become skilled in trading high-impact news, you need to be extremely disciplined. Breaking the rules and trying to earn a big amount of money is never going to work. Study the key steps taken by the successful traders and you will know what it takes to become a disciplined trader. Never let yourself aggressively trade the market as it will make things worse.
Follow the critical steps and limit your risk exposure by improving your trade execution technique. Always maintain a trading journal so that you don’t have to break the rules. Once you become skilled at evaluating the critical stages with proper discipline, you will easily succeed as a news trader.
By now you have read about the most important steps to become a successful trader. If you want to push yourself to the next limit, you need to rely on these tips. And learn to trade the high-impact news I the demo environment. Once you become skilled in trading the demo account, move to the real trading industry.