Dwayne Buzzell Blog | How to use news data to find the perfect trade | Talkmarkets

Dwayne Buzzell

Forex Trader
Member's Links: Forex Trader

Between 2003 and 2007 I was studying Economy at Berkeley University.

Since 2014 I've been investing in the forex market. It takes me about 2-4 hours daily. I have a lot of experience and I want to share my knowledge.

How to use news data to find the perfect trade

Date: Wednesday, October 25, 2017 5:46 AM EST

News trading is hugely profitable, but only a few traders can use the news data. The market becomes extremely volatile during the high impact news release, and the novice traders find it hard to trade in such a volatile condition. But if you can learn the fundamental analysis then you can easily interpret the market news and trade high-quality trades. Majority of the retail traders execute their orders based on their technical analysis skills. But you need to understand that to find the best trading signal you need to learn about the fundamental section also. It will help you to measure the strength of the market trend and maximize your profit potential. But make sure that you are not using your real money to learn news trading. Just open a demo trading account and see how this market reacts to a different news release.

Fundamental factors are price driving catalyst

This market extremely volatile without learning about the technical and fundamental analysis you can never really execute high-quality trades. Some traders at Saxo often consider the news as the prime price driving catalyst in the Forex market. For instance, if you see a sharp drop in the USDJPY pair all of sudden the chances are very high that a high impact news data is hugely negative for the U.S economy. To be precise, the market is extremely sensitive to economic and political events.

How do learn fundamental analysis?

Developing your fundamental analysis skill is very hard. In fact, many traders in the online market often say that they don’t understand how the market reacts to a different news release. But if you spend some quality time and learn about the impact of different news release then it won’t take much time to master the art of news trading. But before you learn about fundamental analysis make sure that you have the perfect sets of technical skills to find the best quality trade setups in your trading platform. Fundamental analysis is the second section of your Forex learning course. If you have a weakness with your technical analysis section, then you need to start it from scratch.

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