Beware of Forex Trading Based on News
Maybe someone asks why we have to trade forex based on economic news as a basis for decision making? the answer is simple that we can get maximum profit. And as we have learned before that economic news is very important because with the economic news the price of a currency pair can move whether it will tend to rise, fall, or ranging.
Things that need to be considered when trading forex based on the release of economic news is about the release of fundamental economic news that has a huge influence on the economy of a country. Because when the economic news is released a lot of forex traders are watching the news so that the movement can be very volatile . And we as a forex trader must have a strategy to deal with things like this.
And the goal when you pay attention to the release of this fundamental economic news is that you are in the right position in accordance with the conditions of economic fundamentals. (yes, if the position we have is contrary to economic conditions, of course we will get a lot of losses).
In addition to the benefits when the fundamental economic news is released we must also remain vigilant of all things, among others, spreads or commissions charged to traders by brokers. Usually when news of economic fundamentals that have a very important influence released bro bro will increase the size of the spread. And if we are not careful, this will affect our capital, especially against margin calls.
Besides you will have problems with spreads, you can also order that you open will be locked (locked out), which means that your order is executed at the right time but will not appear on the order screen for a few minutes. And this is very dangerous especially when your order is contrary to market movements so you cannot make adjustments quickly.
In addition you can also be exposed to the term SLIPPAGE which is a condition when you expect to get the price of a currency pair at a certain level but the price obtained is far from what is desired because it is caused by the volatility of the forex market when the fundamental economic news is released.
So basically forex trading based on the release of fundamental economic news is full of risks so we as forex traders must be prepared to deal with it with a very appropriate strategy and do not forget to always apply risk management.
We must always be disciplined, practice and continue to practice to deal with trading conditions like this. Because there is nothing easy in the forex market! and we must also remember that the market will never forgive the traders.