The common methods to earn money with currency day trading is trading forex news. That is, opening short term trades as per forthcoming fx trading news reports. Then again, as most forex traders recognize, this is a very risky trading technique and might end-up into a losing position. You could use a good forex trading software like Forex Autopilot (see FAP Turbo Review ) or the new Ivybot for normal trading. Forex day trading needs However the day trading according to forex news is different}. In this article we look at three vital things that you have to take into account if you want to gain from day fx tradingforeign exchange trading  based around forex news.

1. Market Sentiments
Failing to take market hope into account is a very common mistake in reports based day trades. We will explain this with an illustration. Imagine there is an upcoming broadcast of US trade figures. As per your prediction this announcement to be beneficial for the dollar, so you open a trade right before the declaration goes live.

But you failed to consider the fact that the financial market by and large was expecting this announcement to strengthen the value of dollar, so in reality, the price movement was already taking place slowly in the days or even weeks leading up to the broadcast. When the announcement is made, there will only be a big price movement if the broadcast is drastically changed from market expectations.

That means that your trades will be profitable only if the announcement is significantly encouraging than anybody anticipated. If it turns out that the figures are good but not as advantageous as expected, the dollar might plunge because the market expectations in advance of the report were exceedingly high. So you possibly will actually lose money.

2. Slippage
Let’s see what is slippage. Slippage is the difference between the price you thought you were getting (the price you clicked on) and the price that your order gets filled at. Slippage depends on the broker to some level, but at the time of an announcement of an important financial report everyone can get affected just because the price in the market changes in every second.

For instance if you are not sure of how a significant fiscal report will go but you are doing in forex day trading and you are expecting a breakout one way or the other, you might put in an order to start a long trade if the price goes up to a specific point, say 1.2000, along with an direction for a short trade if the price falls.

However, you could be in problem if the price suddenly jumps ahead of your trigger. Say it goes up to 1.206 . In such a circumstances you will probably find that your order has been filled at a higher price than you intended, say 1.2030. In case the price drops after this, as it regularly does after a spike, it may settle back at 1.2020. If your order had been placed at 1.2010 that would be fine, but at 1.2030 it is not. Hence slippage is another issue that can make a loser out of a winner in currency day trading if you are not careful.
You can see the detailed guide on forex day trading here.

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