How To Trade Forex With An Audio Squawk
Learn how to turn news into profits with our market commentary – learn more here –
In this video, we’ll show you how to uncover the highest possible probability trades on a regular basis. Now these trades almost never fail, and once you master the process, you’ll forever have the ability to make perps, and generate profitable returns.
If you’ve got any experience with trading news and fundamental analysis, you’re probably aware of the audio squawk. Now if you’re not aware, then it’s really simple. It’s a real time audio broadcast that shouts out breaking news through your PC speakers.
In fact, in 2016 a study revealed that over 80% of all UK investment banks use an audio squawk to keep their trading desks tuned into the markets. And the main benefit is that it only activates when something really market moving happens. So you’re not bombarded throughout the day with audio that doesn’t really matter.
So, let’s take a look at how you can start making money with an audio squawk in your trading today. The very first thing you need to know is the context, or the baseline of why the markets are currently moving.
For example, if you suddenly heard that the ECB has cut its interest rates by 1% is that positive news or negative news? Now that would sound negative, right? Now imagine for a second that the market was actually expecting the ECB to cut by 3% not 1%, and that they, and after this 1% they said that they weren’t needed to cut again.
Suddenly something that might seem bearish and negative on the surface, actually turns out to be unexpectedly positive and bullish. Now the Euro might very well rally out of that squawked information that just hit the wires. So, first of all, you need to be tuned into what the market is expecting, and the context to all of those expectations.
Now once you have that understanding, you can then identify what types of breaking news will most likely cause large moves in the markets. For example, if you research the US dollar and you realize that everyone is really focused on inflation right now, you know that anything related to inflation will be market moving.
On the other end if you hear breaking news about let’s say business confidence readings, you’ll know that that kind of news is not really going to be market moving because everybody is focused on inflation. So, identifying the type of breaking news that you’re waiting for will help you to take better trades but, it will also help you to avoid lots and lots of unnecessary losing trades as well.
And then finally, when you have the context and you know what type of news that you’re waiting for, you can react quickly when that news breaks. Now the audio squawk is the fastest way to become aware of any type of market moving news. They have teams of analysts that sit at their desk staring at hundreds of live newswires. Now all you need to do is a little bit of research, and be waiting at your screens with your speakers turned on, when that market moving news hits the wires.
Now these trades produce almost no draw down and move towards your profit targets very quickly. Now they are probably the most high probability trades that exists in the Forex market, so it’s definitely worth exploring them further if you haven’t done so already. So there you have it, three steps for making money with an audio squawk. Let’s go through them again. First, you need to understand the baseline expectations for every single currency that you want to trade. Next, you need to clearly identify what type of news that you’re waiting for. And finally, you need to be tuned into the markets so you can trade when that news breaks the wires.
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