What is the Carry Trade, and how does it work?
it's one of the most popular strategies to make money among many of the financial universe's largest and baddest money manager mamajamas!
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it's one of the most popular strategies to make money among many of the financial universe's largest and baddest money manager mamajamas!

Here are a few more factors to consider while trading news:

What if there was a way to generate rapid money regardless of whether the market was going up or down? It's doable as long as price volatility is high enough. And when will you be able to get this turbulence? When economic data or central bank announcements are made public! The first step is to find out which news reports to exchange.

Let's look at how to trade the news in a trading scenario with a directional bias. Let's return to our previous example of the unemployment rate in the United States.

There is no single news trading strategy. As traders assess the outcome against market expectations, the price tends to rise in one way or have zero reaction to the news.With this knowledge, there are two basic ways used to trade news:

Forex traders should become aware with the important event risks that have a significant impact on the major currencies. Remember, we're trading the news because it has the potential to raise volatility in the short term, thus we'd want to trade only the news that has the most market-moving potential for the currency market.

It's critical for forex traders to pay attention to big economic data releases, government statements, and geopolitical events. Because this information usually represents an economy's strength and can predict the future direction of a currency. Trade the news might be tough and not fit for everyone, but the resulting volatility can provide a plethora of trading chances.

When it comes to trading, knowing technical analysis isn't enough. It's just as crucial to understand what moves the FX market. There is a fundamental power underlying the trend lines, double tops, and head and shoulder patterns, just as there is in the huge Star Wars universe.

Remember that those were just isolated occurrences of when the COT report signaled a perfect market turnaround before we began betting the farm based on our interpretation of the COT report.

Keep in mind that not every extreme of feeling corresponds to a market top or bottom, thus we'll need a more specific sign. Calculating the percentage of long or short speculative positions would be a better indicator of whether the market is topping or bottoming out.

It's like having your own pony when you have your own COT indicator. When it comes to spotting potential market reversals, the COT report can be extremely informative.

As you might think, the best times to go long and short are when emotions are at their peak. The speculators (green line) and commercials (blue line) delivered opposing signals in the last case. Hedgers purchase when the market is bottoming, while speculators sell when the market is falling. Here's the chart from the COT report once more:

Because the COT report is published weekly, its utility as a market sentiment indicator is better suited to longer-term trading. How do you turn all that "huge gigantic gobbled-up block of text" into a sentiment-based indication that will help you grab some pips?

To comprehend the futures market, you must first understand who is calling the shots and who is warming up the bench.

Where Can I Get a COT Report? The Commitment of Traders report can be found online in the following ways.

The Commodity Futures Trading Commission, or CFTC, is the body that publishes the data. Commitment of Traders report (COT) on Fridays at 2:30 p.m. EST.

Every forex trader will have an opinion on the market at some point. "Everything is going to hell! It's a bear market!" "Everything appears to be going OK. "Right now, I'm pretty bullish on the markets."