Online Trading News Strategy
How to use trading economic calendar
Indeed, one of the most prolific and popular methods of trading on financial markets and online trading in particular is based on interpreting news and online trading economic calendar, in other words, fundamental strategy analysis. You may be sure that if a company released a new major product or if a country publishes its quarterly data that there will be some definite price movement on this event.
Well, you probably think that if Apple, for instance, launches its new IPhone the stock price will sky rocket in a matter of hours, even minutes. In reality it is not that simple. That is the major reason why online trading news strategy section is among the last ones, as it requires a lot of skill and knowledge on the part of a trader to decipher the data provided and their impact on the market conditions.
One of the reasons why it may be hard to trade during such major events is the volatility of an asset. Fluctuations can wary in size, time and direction.
The first point is that you should not trade between 15 minutes prior and after the event publication and announcement in online trading economic calendar. Because the volatility is humongous during these times. Due to the high number of trades being initiated during these times the price is not predictable by any means. But is you choose for yourself Touch / No Touch option with the possibility of a break through of one of the tunnel lines, this may be successful. Mind that the more important the event, the more volatility is on your hands.
The most appropriate online trading news strategy of placing a successful trade using standard online trading Up / Down is 30 minutes before or after the event takes place. When placing a trade before the occasion unfolds you can find a general consensus on its influence. But, of course, there are always some contingencies to account for. So, unfortunately, you cannot be 100% sure, but the chances are still high enough if you can account for the traders' sentiment.
After the first 30 minutes of online trading the initial hiatus will cease and the situation shall stabilize in most instances. With such online trading news strategy by this time you will know for sure the quality of product and its influence on buyers sentiments. So, based on this information, you can freely choose the direction of a trade.
If you prefer trading currencies then any major event relating to your currency pair can do just fine, such as the US non-farm payroll report, and if its results are above expectations any currency pair with USD as the initial one will rise in prices. You can follow the same set of rules as previously mentioned.
As it was said in intro, if you are a total newbie to the market, then deciphering such information may be an arduous task. But this is how the majority of professional traders make their living, so be sure to try it out even on paper to get some of the so needed experience. Knowing how the things roll may be useful for your online trading in any instance.