News Trading Startup Guide
What You’ll Need:
Forex News Trading Triggersheet
This is where you’ll get the list of the news releases I trade and the deviations I use to trade them. It is the key to short-term Forex News trading, and frankly, it took me years of painstaking data gathering to compile this list.
You can download this Triggersheet right here…
Signup For My Newsletter & Read My News Analysis
Hundreds of news releases are scheduled monthly, but we only trade 40 or so releases based on their track records… It’s a gigantic waste of time trying to trade ALL of them. Worse yet, it could become a gigantic waste of money because market reactions to some of these un-tradable releases are unpredictable!
Therefore, I recommend signup for my newsletter and reading my news analysis BEFORE you enter any news trades.
Forex Trading Account (Live or Demo):
You need a Forex account to trade Forex. You can start with a demo account without risking real money if you don’t have a live account. Since trading platforms and how to open a Forex demo account are beyond the scope of this quick guide, plenty of brokers and resources are available on the web.
Schedule Your Calendar:
News releases are scheduled weeks ahead; therefore, you should know their schedules. Usually, the busiest week is the first week of the month, packed with Interest Rate Decisions and the famous U.S. Nonfarm Payroll Report. So planning is always recommended, and you can get all Upcoming Tradable News releases of the week from this site.
Read News Analysis:
It would be best if you made it a routine to read my news analysis at least 15 minutes before the scheduled release and prepare to trade the news. I usually publish these analyses 24 hours before the schedules, and you can access them by clicking on the link on the Upcoming Tradable News list, or you can access them directly through the Currency Strength Meter 3.0
Get Ready To Rumble!
It’s the news release time, and you’re filled with adrenaline! Remember, follow the trading method recommended in the analysis and trade ONLY when the deviation is hit. I recommend staying out of the market unless you know what you are doing.
Rise And Repeat:
Since news releases are scheduled monthly and quarterly, they will repeat monthly, year after year. If you follow the basics, you’ll do just fine.
Three news trading methods exist the Pre-News, Spike Trade, and Retracement Trade.
The Spike Trade:
- We are waiting for the news release to come out. Based on the release number, we enter the market immediately, either with a Long or a Short position.
- We try to catch the initial spike move or part of the move.
- Based on the report and its historical data, we will put our Stop/Loss 15 pips from the pre-release price and our Take/Profit at the maximum expected range.
- This type of trading requires that you react fast enough to the release and use a broker that gives you good fill during news releases.
The Retracement Trade:
- We are waiting for the news release to come out. We will determine “where” to get into the market based on the release number.
- Usually, we wait for the market to return within 10 to 15 pips of the pre-release, depending on the actual deviation.
- We will put our Stop/Loss 15 pips from the entry price.
- We will take a profit of at least 25% of the position when we get 10~20 pips of profit and at least 50% when we retest the top or the spike.
- This type of trade is safer than trading the spike, but sometimes we might not get a retracement or big enough and miss the trade altogether.
The Pre-News Trade:
- We enter the market 5 minutes before the news release. •We base our entry on market sentiment and the fundamental trend of the currency pair.
- We will always trade the direction of the Technical Trends.
- If the news release goes our way, we can make the entire move. If the news release goes against us, we might have to endure the initial drawdown, but usually, after the impact is over, the technical trend will resume its course and give us an exit to break even or 10~15 pips of loss.
This type of news trade is highly advanced and requires that you understand the market trend and market sentiment. It is NOT recommended for ALL news events—only a selected few.
Ok hello to Henry and the team,
When I attach the EA to a chart for the first time today is Saturday 14 May 2016 it gives me this error upon pressing ok and loading some files:
Licensing server seems to be not available.
Please can you help me make the EA operational.
Tha nk you
I would like to say a humble thank you and your team for your contribution to me-us with your mission here.
Nobody seems to give you feedback recently… and I thought since I have been using the EA for a year now on and off it was my duty, as the least gesture of gratitude. I see from my records here that I gathered 68 pips within a year, nothing to rave about for a years effort, but I am certain it is a matter of slippage and broker lags.
What I would like to see re freshened is examples of recent news tackling (should you wish to share with us publicly).
anyone knows where to find the EA system
Is the Triggersheet still valid? Do you have plans to update it? In particular, the Movement Range seems like it would need to be updated periodically. Thanks in advance.
The triggersheet still valid, we’ll update it as soon as we feel it warrants any changes.
As im watch your CNT website since 2012. you are doing very great job and helping poor people like us.
Thanks in advance for your excellent job.
I want to create an account to trade, please suggest me, which broker is best to trade fundamental news.
i’m going to subscribe your FNTA soon.
I noticed that before I could get actual release, the market has moved a reasonable pips,
So how can one trade spike successful?
chuksoraka, we recommend to use the CNT EA to trade the news, specially for spike trading. This is one of the main reasons, you need an EA in order to place the orders fast enough immediately after the news release.
I appreciate both your contribution and Mr Henry Liu effort to see that we, the younger traders, can make something out of trading. For me, I have loss a lot in trading forex, but I come across this magnificent blog, I have immensely recommended it to my friends that are still struggling to come to the light of trading
However sir, I tried to install the CNT EA software, but I still have an issue with my installation and I don’t understand why.
Could you kindly help me out on how to go about it
Henry, I am not receiving my e-mail news reports. I had them for a while, and now they are gone.
Hi Doug, Henry has lowered the amount of emails been sent out, but you can always check the Forex calendar and the News Trading reports here on the website.
Hi Henry, I am happy to come in contact with your online forex services which I have benefited from in terms of knowledge and application. However I will like to know a few things more. Is the CSR still available and profitable for retirement plan trade? Do you have a software(EA) that can trade the news as you are analyzing physically?. What happens to your subscribers when you retire from trading(teaser though haha!)?
CSR is undergoing a major rework and it is not available at the moment.
However, I am working on a version of EA for news trading and it should be ready for beta testing in June. As far as when I retire, well I guess I would have trained someone to carry the torch.
I had pleasure to find your website, thank for your information about your analysis about news trading
thanks for all that u have been doing I got to no about u through a friend but I have no regret i have never considered any software but since i came to ur site i have come to no and seeing so many but i would not buy any that u did not produced pls tell me the one from u so that i can buy them
I will have something soon in the future, and I will let you know when I do.
good day henry, please from your years of experience as a news trader, which broker will you recomend for news trading. i’ll appreciate your response
I have been using IBFX, MBTrading, even FXDD, they all have been good but you need to use common sense and don’t try to spike trade too much.
Can you send to me some information to my personal email, about the cost and price of your services, I Am very interesting in trade the news with you.
Yes, please check out http://www.forexnewstradingacademy.com, all your questions are answered there.
you are the best i can see
continue to empower us with your experts knowledge, God will bless you
God bless you greatly for the education you are giving us very freely, thank you very much.
Please, how else can me and many other traders from Nigeria, especially, get all the forex alerts very well on time of release and not late on? Most of the trading alerts that are coming to us came when they have past their sweet.
Your CSM is very good and if well following will enhances ones trading potentials greatly, hence my thanking you earlier on.
Thank you for everything you are doing for us, many regards to you.
Seth: Good question, but I think unless you are willing to spend at lot of money, there is no solution. TTN (Tradethenews) is good enough to trady, but it is not enough to trade the spike, and with spike trading, you usually get random results… However, I am working on a new software that will help you trade the news… once it is ready, I will make it available to my customers…
Thanks, for your news letters directions it has helped me, We in Nigeria need more of your help towards forex trading
keep on changing our lives for good in forex like the NFP worked out as you explained them.
in recent period why you are not mentioning your profit in pips per month in news alert emails?
Profits are being tallied in the daily analysis, please see the daily video post for more details. Thanks.
pls how do i jpin the traDE ROOM from nigeria thanks
Thanks, Henry. I downloaded the meter successfully. I will practice it and believe it will be of great usage to me. Once again, thanks for sharing this.
Dear mr. Liu
Thanks YOU very much for sharing your knowledge with us for free, i been trying to trade a year ago and until i find this
system and another one just two months ago, i had never be so succesfull, but today i try to trade the NZD Unemployment rate, the desviation
in your chart is in K and the release was in % at fxstreet site, and at the moment of the news there was a spike that i tried to take but it get
back quikly and never get touched again, I think the desviation was to few and that the emplyment change went agaisnt me, i know it wasn´t
scheddueled in your newsletter but anyway i tried it and i did lose about 40 pips anyway i started the month with $100 and today i got $480
i was $560 before that lose; still in profit and assume the lesson learned, but i wonder if is it possible to trade news using BUY STOP and
SELL LIMIT so you wont miss the spike, i was thinking it could be very well done using a TP and ST already set and also a TRAILING STOP
to get as much as you can, would you recomend that? what do you think about it.???
You can certainly try to trade using a straddle system, but the results will depend on the broker and you may risk having your account closed because brokers do not like these kinds of trades.
thanks for the answer and the tip, i haven´t read anything about that before,I thought that they didin´t like scalpers, I´ll try to keep on your advice then, but it
is harder to press buy or sell un two accounts. perhaps i ´ll try on one and let you know after a month, also wanted to ask if you may have another triggersheet like i see one event in tuesday that appears in the the triggersheet but not in the last week forex analysis (NZD retail sales). thanks in advance.
There is a reason why I skip some news releases, and it is because of the lack of consistency with these events. In other words, they are not worth the time to trade.
Hi, I followed your link advising use “after news trading method” for UK PMI, but there is no “after” news trading method on the sheet?
Is the same as “retracement trade”… Just different name.
”I do incorporate some technicals in my trading strategy. Technicals are considered self-fulfilling prophecies,they are more accurate when more people use them”
Please how can I get to know some of your technicals?
I have a membership site where I show both my fundamental and technical analysis training videos. I also do live trading sessions in this site, you can find out more at: http://www.forexnewstradingacademy.com
Thanks for the good work. I am just a demo trader but i av been able to gain a lot from your analysis about news trading.
What i want to ask is if you also have some analysis on technical trading because i sometime discover some good move even when there are no news in d currency pairs.
I do incorporate some technicals in my trading strategy. Technicals are considered self-fulfilling prophecies,they are more accurate when more people use them.
“As you can see, the bulk of our trades in the traderoom are from the daily recommendations”
— Are these like trade signals? Coz I thought the program was to help develop traders so that we no longer need to rely blindly on trade signals? Are these also taught in the program? Are they based on technical/fundamental analysis and honestly, can a beginner come up to speed on this too? I am more interested in learning how to trade independently, rather than rely on signals purely. Also, would be great to know if these trade recommendations have stop losses in place, and if they really as accurate as posted on the website (Ive seen a great many sites which post thousands of pips profits but cant show a shred of proof!)
they are posted and then reviewed in 24 hours. They all have between 40 to 50 pips of stop loss, with specific stops issued at the time of the order.
As far as learning, yes, there are over 40+ hours of training in the membership area (and more to be added) that teaches you everything you need to know about trading news and fundamental releases.
Just enquiring about your trade room. I am unable to trade during the day here in the UK (Working) and can only trade early morning or evenings so I miss alot of the news releases. I am concerned that I will not benefit from joining ? please advise
As you can see, the bulk of our trades in the traderoom are from the daily recommendations, which are issued around 3:30pm your time, therefore if you got 10 minutes a day to enter them in your platform, you are pretty much set. As far as trading the news, I am working on a new solution for that, but honestly 80% of the pips are made from the daily recommendations.
this blue background is very very eye straining make it more natural please
ok will consider that in the next design.
Many Thanks – it’s important to know I can get a response. I followed Henrys analysis and have just traded the USDCAD taking a modest low value 64 pip profit in the face of 200 odd pips but it was an exploratory trade lacking direction and conviction as I was unsure exactly how to interpret the data and would not have been in it at all except for your daily updates. I’m sure Henry and the collective experience of your team will go a long way towards fixing that so I’m joining up and look forward to the trading room chat (I do not expect every trade to yield a spectacular 200 pips or to be successful)
My full name is Mike Hastie – my middle name is James. I was not sure if you were genuine and did not want to give my correct details until I was satisfied I could trust you with my credit card. I will fill in the join-up forms. Mike Hastie.
Thanks Mike. Look forward in seeing you in the traderoom.
Is it possible for me to send an email and get a reply? – I have tried once but no response. I want contact details that work as if I join up and go broke (lets hope not) how can I contact Henry and cancel my direct debit?. I also want to know the exact charges and what I’m signing up for? I would appreciate a rely?
We have a ticketing system that tracks every ticket and you’ll always get a reply.
You can also ask your questions in the traderoom as it is chat enabled.
However, for billing issues you need to talk to support, Henry does not handle it. But rest assured that if your request to stop your billing, your billing will stop. And you can also do this directly through Plimus.