I have received inquiries concerning how I set-up to do my trading.
Since a picture is worth a 1,000 words, then a video would surely do much better – so….
I have produced my 1st video showing how I set-up for a trade. (There is a link below to the video.)
There are several important elements needed in order to properly conduct a “manual trade” — other then the broker and their charts — I find 4 items are essential:
1. A means of getting the economic news report on a timely basis – I use the FOREX Factory “FOREX Calendar” which provides a “button source” a few minutes prior to the “actual” news release.
By pressing this button (called the “actual pending” button) at the moment of the scheduled economic news release, the “actual” news comes up within a minute or two – this is more timely then refreshing the calendar.
2. A comprehensive plan of action is needed.
A. The date and time of the economic news release as well as which country and reporting entity is releasing the report.
B. A need to know how the economic news release will affect the currency market and which currency pair is best suited for a trade.
C. What the “difference” between the “actual” and the “forecast” will most “surprise” the trading currency market.
D. What the “previous” news report came out at and what the “forecast” is.
E. And – what to do when the “actual” report is received.
3. The Time –your computers date and time needs to be kept up-to-date. I up-date the time on my computer about 15 minutes prior to the economic news release.
4. The final element to set-up are the “Market Orders”. I set-up a “Buy” and a “Sell” “Market Order” just prior to the economic news release — that way which ever direction the “market” should move, I am prepared to get in and get out timely.
Each “Market Order” is set with a “Stop Loss” — very important!
Keep this in mind – my “broker spread” will usually increase 30 to 15 seconds prior to the news release, and depending upon the “volatility” of the “currency market”, and may remain high for several minutes.
I usually wait for the “broker spread” to get back to near “normal” before entering a trade.
My “broker spread” increase usually lasts for a minute at most – your broker may operate differently.
And now for the video – here is the link:
Keep in mind – this is my first video, I plan on producing more and my presentation should improve.
Thanks for watching!
This is the 2nd in a series of manual FOREX trades used for an illustration of trading various currency pairs during economic news reports – this video shows the set up, execution and the results of a live foreign currency trade of the US dollar versus the Canadian dollar. Also included 4 charts showing the currency movements.
FOREX Trading the economic news reports can be very profitable much of the time. Most economic news reports that the market deems important to a countries economy will cause a movement of the market in a predictable way.
Sometimes, the market will not react as predicted – this video records just such an event.