Retail traders often get confused when trading the major news. The market has become so volatile that it is nearly impossible to execute the traders. But those who have strong analytical knowledge, usually find such volatile conditions as an excellent opportunity to make a profit. If you carefully look at the professional traders, you will realize that trading the major news is not all tough. You can take the trades with an extreme level of confidence by using some specific guidelines.
Today, we are going to discuss some amazing steps by which we can trade the major news like a pro trader. Go through this article carefully as it is going to change your life within a short time.
Active trading session
To learn the art of news trading, you need to know about the impact of active trading sessions. Most novice traders fail to evaluate the risk profile strategically because they do not have any idea how to deal with the critical market metrics. Most of the time, novice traders become biased in favor of the profit factor and forget to evaluate the risk profile in a standard way. Eventually, they mess things up. But if you pick a trading instrument based on the active trading session, you should be able to make a decent profit without having much trouble.
The severity of the news
Professional traders know very well how to assess the severity of the news. Most of the time, they make things overly complex and they fail to evaluate the risk profile in a standard way. But if you take your time and learn to analyze the severity of the news, taking the trades will become easier. That is why most of the successful traders at Saxo Bank take their trades after assessing the impact of the news. If they think the market is going to become extremely volatile, they prepare themselves accordingly. For instance, they stop themselves from placing pending orders in the market since they know it can create many critical challenges in real-life trading.
Scaling the trades
Scalping the trades is very critical to your success. If you intend to make a regular profit, you must learn to trade with small lot sizes. Increasing the lot size will not increase your profit factor. It will impose a great threat to your trading career. And when you intend to trade the news, you should not take any trades right before the news release because the spread will be high. Moreover, the market may exhibit false spikes in both directions. So, to protect your trading capital, you should learn to manage your lot size.
If you are new to this market, start trading with 1% risk. As you gain more experience, increase the risk profile and try to earn more money. But do not push yourself beyond your risk threshold levels.
Accept the losing trades
After following all the rules precisely, you need to follow some strategic rules. Failing to follow the strategic rules can pose a great threat to your trading career. Never think you will aggressively trade the market as it will make things worse. Try to accept the losing trades with a big smile and consider it as a part of your trading career. Stop following the aggressive method all the time. By using the conservative method, you should become more confident in your trading actions.Thus, making a profit will become much easier.
Seek guidance from the experts
You need to seek guidance from experienced traders to become successful at trading. If you fail to manage your risk profile systematically, you will always be under heavy pressure and thus you will never succeed in the retail trading industry. Use a conservative method and take trades with low risk. Follow tips from profitable traders so that you can withstand the challenges trading presents.