The forex market is an extremely volatile market and the professional traders use the volatility of the market to make a profit. Every single day more than 5.3 trillion USD is traded in the market and only a handful of traders are making money in the exchange traded funds community. In order to become a profitable trader in the forex market, you need to trade with the reputed brokers like Saxo since they offer excellent trading conditions to their traders. Most of the novice traders in the forex market consider forex trading as a get rich quick scheme and when it comes to real life trading, they simply lose money since they don’t have the proper knowledge to trade the live assets. In this article, we will discuss how to trade the NFP news release in the market like professional traders.
Do the technical analysis
The forex market becomes extremely volatile during the event of the high impact news release in the market. Most of the novices’ traders in the exchange traded funds community try to trade the live assets without having a solid plan to trade the high impact news like U.S non-farm payroll data. But if you look at the professional traders then you will notice that every single one of them do the technical analysis in the market before they execute their trades. But in order to do the perfect technical analysis in the market, you need to have a clear basic about the support and resistance level. Before you trade the support and resistance level in the market you need to make sure that you know how to draw them properly in the market. The pro trader always trades the key support and resistance level in the market.
Use price action trading signal
Price action trading strategy is considered to be one of the most profitable trading systems in the exchange traded funds. If you look at the professional traders then you will notice that every single one of them re trading the live asset by using the price action confirmation signal in the market. So when you trade the high impact news release like the NFP, you must use the price action confirmation signal in the market to trade the extreme level of volatility in the market. If you are new in trading then it’s true it will be a little bit difficult for you but if are strongly determined to learn the price action trading strategy then within very few days you fill find that this is not at all complex trading strategy. But some of you might think how we trade such extreme level of volatility in the market using price action confirmation signal. The simple answer is, use the smaller time frame.
Switch to smaller time frame
Trading the price action signal in the smaller time frame is extremely profitable during the high volatile conditions of the market. If you look at the professional traders then you will see that most of them use the 5 minute or 1-minute time frame to filter the price action confirmations signal in the market during the NFP news release. If you are relatively new in forex trading then it will be extremely difficult for you but if you follow strict trading discipline then you can easily make decent money by using the price action confirmation signal.
The forex market offers an extreme level of profit potential to the right candidate. If you can master the art of trading then you can easily secure your financial freedom in real life. But when you trade the high volatile market conditions always make sure that you follow proper risk management factors in every single trade.
DISCLAIMER: This article expresses my own ideas and opinions. Any information I have shared are from sources that I believe to be reliable and accurate. I did not receive any financial compensation in writing this post, nor do I own any shares in any company I’ve mentioned. I encourage any reader to do their own diligent research first before making any investment decisions.
The Jewel of the Crypto Winter: Digital Tokens Backed by Viable Products
The crypto winter that's taken over the market in the last few months has been brutal. Besides tanking prices, there...
What’s New in the Neo-banking Scene in Switzerland?
Swiss neo-banking is becoming increasingly similar to foreign competitors in their product offerings and features. Many are now mimicking the...
Investing Apps: Why Are Retail Investors Using Them?
Investment apps have become increasingly popular among retail investors. Notably, the popularity of investment apps has been triggered by the...
ESG: Tech Companies Must Also Become Responsible
ESG has become vital for many companies in traditional industries like mining. But what are tech companies doing to keep...
Credit for European Companies Cheaper Than a Year Ago Despite Rising Euribor
While market interest rates have seen significant increases, new company financing rates remain lower than they were a year ago....