Website design By BotEap.comThe Forex trading news based system should be selected very carefully. The main reason is that trading during any fundamental announcement or news is one of the most explosive moments during a trading session. The market can move hundreds of pips in a matter of seconds. That is why the risk involved is more than trading using technical analysis.

Website design By BotEap.comStill, due to the profit potential, trading during the forex news announcement is one of the most tempting propositions for forex traders. When you select any system based on forex news, make sure that it covers the 3 risks mentioned below:

Website design By BotEap.com1. What is the strategy to protect the forex account when the market moves against your trading direction? The beauty of forex news is that you cannot predict which way it will move. Naturally, it is very necessary that there is a solid strategy in place to protect the account in case the market moves in the opposite direction than expected. If such a strategy is not implemented, your entire account is at great risk.

Website design By BotEap.com2. What will be the profit target? The way the forex market reacts to fundamental news is based on an “expectation” factor. For example, let’s say the business community believes that according to the upcoming Nonfarm Payrolls, unemployment will be 8% versus 6% during the announcement in recent months. But when NFP comes out and unemployment is said to be at 7.9%, the market will treat that as a positive for the US economy and the dollar will strengthen and the market will move in the direction of the USD. How much it will move will be based on much better results than expectations. The forex news trading system should definitely cover what should be a realistic profit target based on the news results.

Website design By BotEap.com3. Is your forex broker cooperative? No forex news system will work if the broker cannot allow you to trade using live prices during fundamental announcements. During some volatile announcements, some forex brokers delay the prices of currency pairs. That’s because they discourage business news. If that is the case, then either give up the idea of ​​trading forex news or you should choose a new broker.