Hi, friends. It’s John Foster and at this time I am to tell you about the unique forex scalping strategy. Why is it so unique? Just because this is the one fundamental analysis trading strategy approachable for novices. Fundamentals are usually more accurate and profitable than technical ones, but can be gotten fully only by a professional – and not for everyone. However, it’s quite easy to trade with news, having studied the algorithm described here and following all trading laws. So, let’s start.
Here’s the sound question: why few earn with this strategy, though it’s so profitable and easy? The matter is most traders use the scalping incorrectly, set Stop Losses wrong and eventually lose money. News-trading is quite simple, nevertheless you cannot start without some training. Want to earn – drill the instruction and follow the rules I am giving for you.
If you decide to enter the market on the wrong news or forget to Stop counting on yourself, you’ll be supposed to suffer losses. News are unpredictable and you never can be sure how the market reflects. News impulses often exceed 30 points in size. It can lead to profits by correct action, or to losses by trading system rules breaking.
You don’t need any indicators or assistants – they’re unnecessary. Before trading, disable all the tools on the graph so as to not to get distracted by conflicting signals.
Step 1! Choose the currency pair to work with and start the minute-ranged graph. You’d better choose the most popular rates because they have most news.
Step 2! Open “Economic Calendar”. It facilitates working and allows trading on the news, even for a novice. Previously, traders had to watch foreign news bulletins, but today information is displayed as a handy table, pictured below.
Step 3! Let’s begin to trade. Searching for an important news of your currency’s country. For instance, we are interested in US and UK news, having chosen the pound-dollar pair. If you choose euro – be advised about European activity, such as of Germany or France.
Important news are marked as 3 bull heads – pay attention for them. Other news have very low impact and are not so noteworthy for the rate and for us.
Step 4! When the news is found – wait for the info output, the time for it is in the Calendar. Once the data is out – enter the market in news direction. Here is a danger for novices, so let me make something clear:
Trading with USD/GBF, the rate will rise due to US GDP growth, and fall if UK GDP grows. Keep it in mind when scalpingthe news while trading. If your currency is in the denominator of the pair, then overturn your forecast and follow the opposite direction from the news.
Step 5! Leaving the market, regardless of the result, after 1-2 minutes after the news publishing, because in most cases here goes the change of the rate which can be bigger than the one of the selected news.
StopLoss is necessary to be set within 15 points from the open position. TakeProfit is optional, but not closer than 25 points from the open position. Sometimes profit from the news impulse hardly pays off the spread, and sometimes it can reach hundreds of points, just like in a medium-term and even a long-term deal.
To insure your risks you can enter by a news with pending orders. For that, follow these steps:
Why are we doing this? Sometimes the single news doesn't affect the market, even if indices are higher or lower than expected. In this case price doesn't activate the pending order, and you save money on brokers' spread surely taken for the open position. Also, such trading is by far more comfortable because you must open a new position in a few seconds after the news is published - which is quite difficult with emotions. But the most important graph movements emerge in first seconds after the news appears.
In the previous strategy - «Scalper» - I have thoroughly described deposit boost technique. There’s no need for repeating all the stuff – just showing the steps:
Pay precise attention, that the deposit boosting is recommended for experienced traders only. For newbies, I advise working without it and get hand in.
To make the forex scalping strategy "News Scalp" yet more profitable, I can advise to keep these points in mind:
So, today we've looked into the unique "News Scalp" forex trading strategy. It can be used even by a newbie, but you should precisely follow the whole instruction to gain more profits. Yet another advice: trade with several currency pairs - thus you'll be able to open more positions. On the average, there is 1 important news published for each currency per day. Sometimes nothing appears, so to earn 80% of your original deposit per month, you should open at least 2-3 positions a day.
The accuracy of the strategy is 9/10 true signals - so you can exceed money-management limits with it and engage 10-15% of your deposit in a single deal.
Good luck and good profits for all of you!
Best Regards, John Foster.
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