The widespread ways to make money with currency day trading is trading the Fx news. That is, opening short term trades based on upcoming forex reports. Then again, as most traders know, this is a highly risky trading method and might end-up into a losing situation. You could use a good Fx trading robot like Forex Autopilot (see FAP Turbo Review ) or the latest software Ivybot for normal trading. Forex day trading needs However the day trading according to forex news is different. In this article we look at 3 vital things that you must take into account if you need to earn from day trading  based around currency trading news.

1. Market Expectations
Failing to take market expectations into account is a very common mistake in news based day trades. Let’s see this with an example. Let’s say there is an upcoming broadcast of US trade information. According to you this announcement to be positive for the dollar, so you open a trade just before the declaration is due.

But you forgot to consider the fact that the financial market generally was expecting this report to strengthen the dollar, thus in fact, the price movement was already taking place slowly in the days before the report. When the report is live, there will be big price movements only if the announcement is considerably different from the forecasts.

This means that your trade will be profitable only if the announcement is much more positive than everybody estimated. If the announcement statistics are good but not as advantageous as expected, the dollar might fall because the market outlook before of the announcement were too high. Hence you could actually lose out.

2. Slippage
What is slippage?. Slippage is the variation between the price you wanted to get while placing the trade and actual price that your trade gets filled at. Of course slippage depends on the broker to some level, but during an announcement everyone can get affected simply because the price in the market changes in every second.

For instance if you are not sure of how a news release will go but you are involved in currency day trading and you are hoping a breakout one way or the other, you might place an order to open a long trade if the price goes up to a specific point, say 1.2010, along with an direction for a short trade if the price falls.

But, you could be in danger if the price suddenly jumps ahead of your trigger. Say it shoots up to 1.2040 . In such a circumstances you will in all probability find that your order has been placed at a higher price than you intended, say 1.2025. In case the price then drops, as it regularly does after a spike, it might settle down back at 1.2020. If your order had been filled at 1.2010 that would be fine, but at 1.2025 it is not. Hence slippage is an added issue that can make a loser out of a winner in forex day trading if you are not cautious.
You can see the detailed article on forex day trading here.