TRADING THE NEWS

TRADING THE NEWS IS WHAT EVERY SUCCESSFUL TRADER DOES Making informed investment decisions is practically impossible without looking into current and upcoming events. Learn the basics of this approach for an easier and more predictable trading experience.

WHY DOES ECONOMIC NEWS MATTER? Major events stir the markets both before and after they happen. Most fundamental economic reports are published on a regular basis, thus allowing for price predictions based on previous or preliminary results.

A news release is almost certain to sway the price of a relevant asset. The trend, however, is always followed by a correction. Many traders believe this moment to be the best time to enter the market.

MAJOR ECONOMIC EVENTS TO LOOK OUT FOR:

Interest Rates

Central Bank reports and statements

Employment/unemployment reports

HOW DO I TRADE ON THE NEWS? Keep close tabs on upcoming releases with the help of the IQ Option Economic Calendar.

PLEASE NOTE: All of the events on the Calendar are conveniently rated based on their market-moving potency and display previous, forecast, and actual levels, helping you to make better-informed decisions at a glance.

THERE ARE 2 MAIN STRATEGIES TO TRADING ON THE NEWS:

Immediate volatility: Take advantage of price fluctuations immediately following the news release. If the actual levels exceed the forecast ones, it’s safe to assume the relevant asset price will go up, and if the actual levels are disappointing the opposite is likely to happen.

Correction: Monitor the price direction the asset took after the news release and watch for the formation of a reversal candle. Corrective trends can point to an excellent trading opportunity.