As someone who has been involved in crypto trading since the day of steemit, Forex trading felt like something I could also do. Both markets share a lot of similarities, especially with charts. But it wasn’t just my thing. I decided to stick with trading Crypto even when people or friends were reaching out to me to learn Forex, which would have prompted me to go into it.
Well, long story short, I decided to begin Forex early this year when my younger brother who had already been actively trading Forex moved in to stay with me. He listed me the apps to download.
Sometime Last two months, I got everything set up with my broker and traded with a Demo account for like a week. Not jumping straight into a live account was a nice approach to Forex. I needed to be very comfortable with the platform. Then second week, I abandoned the Demo account for a $3,000 challenge account. This account came with a few rules but I will only share the important ones here;
- Make 10% to get a live account
- 6% daily drawdown
- 9% overall drawdown
Those were the rules I followed while trading the challenge account. The first few days went so well while towards the weekend, I blew the account. But I learned from my mistakes and I noted them. Two weeks later, I got another account, but this time, it's a $1,000 live account. I managed it to like $1,050 in 3 days, I was being too careful. But blew it when the last USD CPI (Consumer Price Index) news came out. The spike went both ways.
In case you’re wondering, the above screenshot is from tradingView and ForexFacoty; a news alert website, and Yes, I trade news!
It’s wasn't how I started, but after some discoveries, while trading with the Demo account, I decided news trading was where I wanted to be. I spend time forecasting the news before it hits, plotting my charts, and waiting for the moment when the data drops. I make use of multiple websites but forexfactory is usually the first I look at.
Meanwhile, on platforms like X (formerly Twitter) and TikTok, I randomly search for phrases like news trading just to see relatable conversations. It's a hot topic on there. However, some view it as a gamble which might be true but hear me out! After diving deeper into the strategy, I realized that news trading isn’t gambling as it seems. But it’s just a faster execution of price movements toward a target (uptrend/downtrend). The markets react swiftly to the news, and if you’ve done your research and positioned yourself correctly, you can ride with it too. Easy profit.
For those who might be interested in trading Forex, it's something worth looking into. You just have to go for a Broker that supports it, because most doesn't. They usually give a rule like; "Only trade 5 minutes before/after the news".
Let me say this; News trading is fast, dynamic, and with the right forecast, and if you are quick to enter the trade, it can be an effective strategy. But it's as risky as other trading too.
Have you ever tried trading news? What do you have to say about new trading or Forex in general?
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