Trading forex news presents tremendous profit opportunities but also carries significant risks if not approached with tact and mastery. The key to avoiding losses lies in preparation, risk management, and choosing the right trading conditions. Brokers like Pepperstone with tight spreads and fast execution, combined with TradingView for real-time analysis, can significantly improve your odds during volatile news events.
Key Strategies to Prevent Losses in News Trading
- Stick to major currency pairs – EUR/USD, GBP/USD, and USD/JPY tend to have cleaner moves with better liquidity, reducing slippage risks.
- Avoid trading the first spike – Many traders lose money by chasing the initial volatile move. Wait 5-15 minutes for the market to stabilize before entering.
- Use pending orders cautiously – Slippage can be extreme during news. Instead, trade manually or use brokers like IC Markets that offer reliable execution.
- Trade with the trend – News often amplifies existing trends. Fighting the dominant direction increases the risk of losses.
- Adjust position sizes – Reduce risk exposure during high-impact news to account for wider price swings.
- Monitor economic calendars – Use tools like Pepperstone’s economic calendar to avoid unexpected news events.
- Set stop-losses wisely – Place stops outside typical volatility ranges to avoid being stopped out prematurely.
- Avoid overleveraging – High leverage during news can quickly wipe out accounts. Stick to conservative risk levels.
Forex News Trading FAQs
How much spread widening is normal during news events?
Expect spreads to expand 5-10 times normal levels on major pairs during high-impact news.
Which news events cause the most stop-loss hunting?
NFP, FOMC decisions, and CPI releases often trigger rapid price reversals.
Is it better to trade before or after news releases?
Trading after the news reduces uncertainty, but requires quick reactions to price action.
Why do some traders avoid news trading altogether?
Unpredictable volatility, widened spreads, and slippage make it too risky for some strategies.
Final Thoughts
Forex news trading doesn’t have to be a losing game—smart risk management and the right tools make all the difference. Choosing a broker like Pepperstone (or FP Markets for ECN pricing) ensures faster execution and tighter spreads, while TradingView helps identify high-probability setups. By avoiding common mistakes like overleveraging and chasing spikes, traders can turn news volatility into an advantage rather than a pitfall.
Trade Smarter with Pepperstone
Pepperstone
Elias Stroud is a professional forex trader and market analyst with over eight years of experience. His journey began with the common misconception that trading was a get-rich-quick scheme, a path that led to significant early losses. It was this initial failure that forced a pivot towards disciplined, long-term learning and strategy development.
Today, Elias specializes in price action analysis, focusing on identifying high-probability setups without relying on complex indicators. He has cultivated a premium-level trading account, a direct result of his commitment to a structured and professional approach to the markets. Elias is passionate about sharing the actionable insights and foundational principles that helped him transform from a novice to a consistently profitable trader.
For further verification of his professional standing and live trading credentials, please visit the “About Us” page where account confirmation screenshots are provided, along with links to his trusted broker, Pepperstone, and his primary charting platform, TradingView.
