The forex market is extremely volatile and the professional traders use the market volatility to make a profit in the market. Most of the times the market shows an extreme level of volatility and breaks key support or resistance level in the market and even changed the long-term prevailing trend in the market during the major political event. If you are new in the exchange traded funds community then you will be stunned to see the nature of the market at that time. Most of the novice traders in the forex market loses money in forex trading since they don’t know how to execute the perfect orders during such events. If you look at the professional traders in the United Kingdom then you will notice that every single one of them is trading with the most reputed broker like Saxo since they offer an excellent trading environment and robust trading platform to their clients. In this article, we will discuss how to trade the major political events in the market.
Trading the forex market successfully requires strong knowledge in the fundamental analysis section. If you look at the professional traders then you will notice that all of them use both fundamental and technical analysis to execute their orders in the market. Unlike the professional traders, the novice traders simply use the technical analysis and lose money in the major events like U.S presidential election or any leading political leader’s speech. In the eyes of trained professional fundamental analysis is often considered to be the most powerful price driving catalyst in the forex market. So if you truly want to become a professional trader in the forex market then make sure that you learn the art of fundamental analysis in the exchange traded funds community to execute high-quality trades in the market.
Use price action signal
Price action trading strategy is based on the raw price movement of certain assets in the financial market. The system is extremely reliable and profitable and most of the expert traders in the exchange traded funds community use this system to secure the best possible trades in the market. However mastering the art of price action trading strategy is not at all simple. If you truly want to master the art of price action trading strategy then you must have a clear understanding in the forex market and only then you will be able to secure the best possible trades in the market. As a professional trader you should never trade during the political speech rather you should wait for the market dust to settle down and look for price action confirmation signal.
Use proper risk management factors
If you trade the forex market then it’s very obvious that you will often have some losing orders in the market. Most of the novice traders in the forex market loses money in forex trading due to their lack of trading knowledge and improper risk management factors. Since losing is inevitable in forex trading you need to make sure that you winners are always bigger then you losers only then you will be able to make money in the forex trading industry.
Trading the financial instrument is just like doing any other business in the world. If you look at the professional traders then you will notice that every single one of them trade the market with an extreme level of trading discipline and proper risk management factors. When you trade the political events in the market make sure that you use the higher time frame and trade with price action confirmation signal.