News Trading: A Strategy Based on Market Reactions
News trading relies on fundamental analysis, leveraging market reactions to economic reports. Traders use an **economic calendar** to anticipate price movements, placing pending orders before news releases. **High volatility** can lead to **sharp gains (30-80 pips in 1-4 hours)** but also **increased risk** due to unpredictable reactions, widened spreads, and slippage. **Best practices** include using real-time news sources and avoiding trading **30 minutes before and after major releases**. While it eliminates complex technical analysis, it demands **constant monitoring**. Ideal for experienced traders, but **beginners should practice cautiously** to manage risks effectively.





