Whether you like it or not, the foreign exchange market or forex is influenced by external factors, XAUBOT Pro: such as the release of important financial news. It is even impacted by the global events that might occur at any moment. These are events that have a serious geopolitical punch so-to-speak!
So it is best to learn how to ride the wave when the waters get choppy, rather than just standing in their way. And that is exactly what we are going to do in this article. We are going to take a look at news trading and more importantly take a look at what you ought to do to prepare for the wave.
It means we are going to see what can be done prior or before to the release of news in the forex market and how XauBot Pro can help you in this way.
Take a look at: Unraveling the Secrets of XAUBOT’s Fundamental Analysis Approach
Two Major Approaches to News Trading
Shortly we are going to discuss how to weather the storm of news being published in the forex market – i.e. what to do before the release of high impact news in the foreign exchange market. But first, we must understand what approaches there are to trading the news in the forex at all.
Basically, as a trader you are faced with two major approaches of trading in forex.
First of all, you can go with the direction of the market. This means as the trader you are anticipating that the market will not be negatively impacted by the release of the news. When we say the market will not be negatively impacted, we merely mean with respect to your already assumed positions in the market.
So this means whatever trend you have decided to trade, you will keep on trading based on the assumption that you believe the release of the high impact news will not disrupt the said trend and will only reinforce it so that you can keep trading it.
Secondly, you could go against the direction of the market. That would of course be the case when you believe that the release of the news will cause a serious disruption in the overarching trend existing in the market. Of course when you are anticipating that the release of the high impact news will cause a reversal in the trend, you’d naturally position yourself such that you go against the current trend in the market.
These are the two major approaches that you can have toward trading the news in the forex market. But things are not as simple as this. There are serious considerations to take into account before, during, and even after the release of high impact news. Of course we are going to focus on what to do before the release of news.
Take a look at: Utilize Telegram Messages for RSI and Bollinger Band in XAUBOT Pro
Is It Safe to Trade Before High Impact News in Forex?
So here we are, at the crossroads before the release of the news where we need to decide whether we ought to trade in the Forex market or not. This is a serious decision to make, as the wrong move will put you and your assets in jeopardy and exposed to the unnecessary volatility that could make you sustain losses.
So let’s see how the market is before high impact news is about to be released.
The nature of news being released is that it will undoubtedly cause volatility in the market as a result of the unsure feeling it induces in traders. But the thing about news is that before it is released and all the anticipation around its eventual release is the calmest time compared to when it is actually out there and after that.
So this means things are much less volatile in the market before the release of news. In other words, if you are dead set on trading the news in the forex market, perhaps the best time would be before the release of high impact news. Because that is when things are more predictable than what they might be soon.
However, less volatile does not mean no volatility. There will still be a certain degree of price fluctuation to be expected. So your safe bet still is not to trade at all before the release of high impact news. Now we’ll see how XauBot Pro helps you this way.
Take a look at: Significance of Money Flow Limits in Trading in XAUBOT Pro
Stop Trading Before High Impact News with the Help of XauBot Pro
As we discussed, the safe bet is not to trade before the release of high impact news in the Forex market. This is because even though things are less volatile compared to after the release of them, it is still not completely predictable and reliable.
This is why there is a feature integrated into XauBot Pro that will help you do just that. It means there is a feature that will help you automatically halt all trading operations prior to the release of important news in the market.
The way this feature works is that you as the trader will set a number of minutes for it as its value. So for instance if you set its value to 90, then XauBot Pro will halt trading operations 90 minutes before the release of any high impact news, thus keeping your assets safe and secure from any upcoming volatility.
Take a look at: Role of Money Flow Limits in Market Analysis in XAUBOT Pro
Conclusion
The release of any important and high impact news that is pertained to the forex market will inevitably impact the market by causing disruptions and volatility. Though traders have the chance to trade during this time, there is still the option of not trading before the release of high impact news. In this article we showed you how you can use the parameter available in XauBot Pro to automatically stop the trading process before the release of important news.
