Québec City Traders’ Guide: Forex Trading And Mining Tips For Easy Profits

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Québec City Traders’ Guide: Forex Trading And Mining Tips For Easy Profits – One of the great advantages of trading currencies is that the forex market is open 24 hours a day, five days a week (from Sunday, 5 pm to Friday, 4 pm ET). Since markets move because of news, economic data is often the most important catalyst for short-term movements. This is especially true in the financial market, which is not only the US economic numbers, but to the news from around the world. Here, we look at which economic numbers were released when, which data is most important to traders, and how traders can act on this market-moving information.

With at least eight major currencies available for trading at most financial brokers, there is always a piece of economic data set for release that traders can use to make informed trades. In fact, seven or more pieces of data are released every weekday (except holidays) from the next eight most important countries. So for those who choose to trade news, there are many opportunities. Eight major currencies are familiar to most traders:

Québec City Traders’ Guide: Forex Trading And Mining Tips For Easy Profits

Québec City Traders' Guide: Forex Trading And Mining Tips For Easy Profits

Currencies that can be easily traded around the world. This means that you can take currencies and economic releases to which you pay special attention. But, as a general rule, since US dollars are in the “other side” of 90% of all financial transactions, US economic releases tend to have a higher impact on business markets.

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Business news is harder than it sounds. Not only is the reported consensus number important, but so are the whisper numbers (unofficial and published predictions) and any revisions to previous reports. Also, some releases are more important than others; this can be measured in terms of both the importance of the country releasing the data and the importance of the release in relation to other pieces of data released.

Figure 1 lists the approximate times (Eastern Time) of the most important economic releases for each of these countries. These are also times when players in the forex market pay extra attention to the markets, especially when trading is based on news releases.

When it comes to business news, you first have to know what releases you actually expect that week. Second, knowing which data is important is also key. In general, the most important information relates to changes in interest rates, inflation, and economic growth, such as retail sales, manufacturing, and industrial production:

Depending on the current economic situation, the relative importance of these releases may change. For example, unemployment may be more important this month than business or interest rate decisions. Therefore, it is important to keep on top of what the market is focusing on at the moment.

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According to a study by Martin D. D. Evans and Richard K. Lyons published in the Journal of International Finance and Finance (2004), the market can also cause or react to news reports moments, if not days, after the the number has been released.

The study found that the effect on returns usually occurred on the first or second day, but the effect seemed to last until the fourth day. The effect on the flow of buying and selling orders, on the other hand, was also very pronounced on the third day and was noticeable on the fourth day.

The most common way to trade the news is to look for a period of consolidation or uncertainty ahead of a large number and to trade the break on the back of the news. This can be done on both a short term (intraday) or over several days. Let’s look at the chart in Figure 2 as an example. After a weak number in September, the Euro is holding its breath ahead of the October number, which should be released to the public in November.

Québec City Traders' Guide: Forex Trading And Mining Tips For Easy Profits

In the 17 hours before the release, EUR/USD was confined within a tight 30-pip trading range. (A pip is the smallest amount of change in a currency pair in the stock market, and because most major currency pairs are priced to four decimal places, the smallest change is the last decimal place.) news traders, this will be provided. a great opportunity to put on a breakout trade, especially since the possibility of a sharp move at this time is very high.

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The chart above illustrates-with two horizontal lines forming a trading channel-the uncertainty and uncertainty leading to the non-farm payrolls numbers in October, which were released in early November. Notice the increase in volatility that occurs once the numbers are released.

We mentioned earlier that business news is harder than you might think. Why? The first reason is change. You may make the right move but the market may simply not have the momentum to sustain the move.

Let’s look at the chart in Figure 3 as an example. This graph shows the same post-release activity as that shown in Figure 2 (but on a different time frame) to show how difficult business news releases can be. In November The shock led to a nearly 60-pip sell-off in the dollar against the euro in the first 25 minutes after the release.

However, the movement of the dollar was so strong that the benefits were quickly reversed, and an hour later, EUR/USD broke its previous low and hit a 1.5-year low against the dollar. Opportunities are plentiful for breakout traders but the bullish movement in the dollar is so strong that such a number of negative currencies have failed to put a sustainable stop in the currency rally. One thing to remember is that, on the back of a good number, a strong movement should also see a strong extension.

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The above chart shows that, while the worse than expected non-farm payroll numbers sent the EUR/USD price up for a while, the strong strength of the US dollar able to take control and push higher. Keep in mind, when the US dollar is appreciating against the Euro.

A potential response to taking a break in volatility without having to deal with the risk of volatility is to trade large options. Great options generally have barrier levels and will be profitable or unprofitable depending on whether the barrier level is breached. The payout is predetermined and the premium or money of the option is based on the payout. The following are the most popular types of great options to use to trade news releases:

The double-touch option has two barrier levels. Either one of the stages must be breached before completion in order for the option to become profitable and for the buyer to receive the payment. If the barrier level is not met before expiration, the option expires indefinitely. The double touch option is a perfect option to trade for news releases because it is a break game that is not a pure direction. As long as the barrier level is breached—even if the price definitely reverses later—the payment is made.

Québec City Traders' Guide: Forex Trading And Mining Tips For Easy Profits

The one-touch option only has one barrier level, which makes it slightly cheaper than the two-touch option. There is the same example – the payment is made only if the barrier is broken before the end. This is a good option to buy if you have an accurate view on whether the number will be stronger or weaker than the market consensus forecast.

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Options on currencies are a viable alternative for those who don’t care to get caught in the markets by the wrong volatility before they actually see that the spot price moves in the desired direction; There are many different types of currency options available through a handful of forex brokers.

A non-double-tap option is the exact opposite of a double-tap option. There are two barrier levels, but in this case, neither barrier level can be breached before the end-otherwise the payment option is not made. This option is great for news traders who think that the economic release will

The stock market is particularly sensitive to short-term movements brought about by the release of economic news from the US and the rest of the world. If you want to trade the news successfully in the stock market, there are several important considerations: know when the reports are expected, understand which releases are the most important for the current economic conditions and, of course, know how to can trade based on this stock movement data. . Do your research and stay on top of the economic news and you too can reap the rewards.

The offers shown in this table come from the partnerships from which you receive compensation. This reward may affect how and where listings appear. it does not include all the offers in the market. For success in business trading, many aspects come into play. To navigate them, you must understand their role and have a plan. This chapter will introduce two sections to help you do that: local laws and cultural advice on financial transactions. Both affect your benefits. Also, we will delve deeper into the country’s economic stability and how it affects business.

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