Posted by forex at 7:15 AM
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1. Set up an online Forex broker account. It is very easy, and there are no special qualifications or requirements needed. Some of the better brokers are E-Toro, Forex.com and Forex Yard. You may begin with a free demo account with any of these and most other brokers, to test your trading skills with no real money at stake. When you are ready to put up real money for a live account, you can begin with as little as $50.
2. Consult an economic news calendar. You will usually be able to find this on your broker's website and/or trading platform. If not, go to the Bloomberg website. They have a comprehensive calendar on their site. Look only at the USA economic news entries on the calendar. The key and important news announcements will be highlighted or notated some other way as critical. Note the time when these important news releases are scheduled to be announced.
3. Pick your news announcement to set up a trade on. Go on your broker's trading platform at least 10 minutes before the news is to be announced, and click on the charts section. Click the appropriate tabs to get the EUR/USD chart, candlestick style, with the 15-minute time value. It is recommended to strictly trade the EUR/USD at first. You may trade other currency pairs as you gain experience in the market.
4. Observe where the price is at five minutes before the news event.Use your trading platform order tool to place the following order three to five minutes before the news announcement is scheduled. Place a stop/loss buy order 30 pips or points (a pip is an acronym for point in profit) above the market price for the EUR/USD. Next place a stop/loss sell order 30 pips below the market price for the EUR/USD.
5. Watch the 15-minute chart exactly at the time the economic news report is released. Do nothing unless and until one of the orders above become a 'position.' An order becomes a position once the price, in this case that of the EUR/USD, goes up or down the 30 points that you set it at before the news announcement. If a position is executed by a price movement up or down, it then becomes a buy or sell order.
6. Observe the price movement on the chart. Liquidate your position once a profit is shown. Do not stay in your position too long, because at this time -- that is, whenever important economic news is released -- the market can be extremely volatile and the prices can easily reverse and go against you. Of course, the volatility is essentially what can earn you large profits as well.
7. Close your position as soon as you see a profit. When profit is taken, observe the chart again to see if you can make another trade. If so, trade again and take more profit. This method of trading offers the highest probability of profitability.