In this lesson, I will talk about the different ways how you can trade forex during key economic news events.
Most common used news strategies:

• Trading the Numbers
• Straddle the News
• Hedging the News

Moving Average Convergence/Divergence (MACD)

What is it?

The MACD is one of the most popular oscillator used by currency traders. This is a momentum indicator can be used to confirm trends, while also indicating reversals, or overbought/oversold conditions. The MACD is calculated by taking the difference between the 2 exponential moving averages. The two that is usually used are the 26-day and 12-day moving averages.

Trading currencies involves more than technical knowledge and up to date information regarding market news and events. Each trade has its own numeric particularities, which will determine your profit/loss depending on several factors, such as: lot size, pip value, spread and leverage. This article will explain in 3 examples how you can manage your buy/sell orders in order to successfully achieve the expected results for each one of them.

Money management is a critical point that shows difference between winners and losers. It was proved that if 100 traders start trading using a system with 60% winning odds, only 5 traders will be in profit at the end of the year. In spite of the 60% winning odds 95% of traders will lose because of their poor money management. Money management is the most significant part of any trading system. Most of traders don't understand how important it is.

For many new forex traders, the promise of quick riches is difficult to resist. That is the main reason why every day so many people from all walks of life begin trading the forex market. While some element of this “keep your eyes on the prize” mentality is necessary to get traders through the tough times, on any given trading day one should really focus on other things first.

Like any other business in the history of business, your broker’s raison d’etre, is to make as big a profit as possible. There are about as many ways to go about this as there are brokers. For those who are in it for the long haul, however, it is generally best to adopt a set of practices which are deemed fair by their clients: certain boundaries are set, and operating beyond them can cost a brokerage its reputation, and along with it its clients.

Choosing a good forex broker is one of the most important decisions you need to make at the beginning (or at any point) of your forex trading career. Do not take this decision lightly, but at the same time don’t stress over it – the process does not need to be complicated – just like in your trading decisions, once you do your homework, things tend to fall into place. Chance favors the prepared trader and everything you need to make an informed decision is listed right here.