Everyone knows the fact, news trading is the most difficult task for the retail traders. Many people in Singapore have lost their trading capital by trying to trade the major news. But this doesn’t mean you can’t trade the major news and earn a decent profit from this market. To make your life better, you must educate yourself to trade the news. News trading is a very easy task but you must know the perfect method to execute the trades. In this article, we are going to teach to trade the NFP news like the pro traders.
Find the key support and resistance
Before the news is released, you need to find the key support and resistance. Without finding the key support and resistance zone, it’s very hard to execute the perfect orders. Those who have extensive knowledge of support and resistance level trading strategy, know the news is the prime catalyst which results in the test of the critical support or resistance level. Unless you find the critical trading zone, it will be hard to determine the exact entry points to execute the order.
Look for long term goals
You must look for long term goals to make a profit. When it comes to the NFP trading strategy, you should never think about the short term impact of this major news. If you do so, you are going to lose most of the trades. Once you start to focus on the long term market dynamics, Forex trading will become easier. Now let’s learn the proper way to execute the trade.
Focus on the 5 minute time frame
After the NFP news, you need to focus on a 5-minute time frame. Look for potential price action signals at the critical support or resistance level. Once you find your desired trade setups, execute the trade with managed risk. But never think you can earn a big profit without following the risk management policy. At times you might secure some big trades but after losing a few trades, you might blow up the account. So, focus on the safety of your investment if you want to protect your trading capital. By using the conservative trading method, you can expect to make a decent profit.
Get ready to lose some trades
Trading the NFP doesn’t mean you will win all the trades. You must be prepared to lose some trades. Losing should be considered as blessings since it gives more learning opportunities. But make sure you are not trading with high risk since it will make it hard to embrace the losing orders. Once you start to trade this market with managed risk, within a short period, you can start to trade the market like pro traders. But remember the fact, you are dealing with high impact news. Unless you analyze the fundamental and technical data with a high level of precision, you are going to lose most of the trades. Always follow the conservative method to save your investment.
Demo trade the market
Learning to trade the NFP news requires the use of a demo trading account. Demo trading account gives you the perfect environment to test new things. You might have to lose many trades in the demo account but it’s normal. Analyze the losing trades and try to find the key reason behind the loss. However, some of you might feel bored since it takes a month to trade the NFP news. To avoid such a problem you can use the Forex simulation software. But make sure you are not trading the market using some low-end trading tools. Always stay in touch with the reputed broker so that you don’t have to learn faulty things. Once you get skilled by trading the NFP news, start trading the real market with low risk. Safety should be a prime concern no matter which system you follow.