Make The Most of MT4's Features To Trade News
Keep up with the news impacting the financial markets through a unique feature found in your MT4 account, once you log in to your Sage FX account.
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- Why do you need to keep track of international news when trading?
- What news to look out for when trading
- How to download and use the News feature on MT4
Meta Trader 4 (MT4) is the indispensable tool for any tech-savvy trader. In our Guide to Meta Trader 4 article, we delved into why this is the case as well as showed some unique features that make it a class above the rest.
In this article we will show you how you can keep up with the financial news impacting the markets by a unique MT4 feature. Read on…
Why is news important in forex trading?
Having a trading strategy and a sound technical analysis is key to achieving success on the markets. However, both of these skills can be quite useless if you ignore international news involving the pair you are trading.
Why? How does it work? Well, international and economic events reported in the news do affect our perception of the currencies or stocks we are trading. This may cause a downward or upward shift on the market and it might make a significant difference in whether you will pocket some profits or endure losses as a result of such a shift.
There are three ways that news may affect forex:
Events such as wars, elections, terrorist attacks and political scandals, when reported in the news might seriously rock your trading. When the September 11th attacks shocked the world in 2001, the charts throughout the month showed an impressive pivotal point in trend reversal. It distinctly went from a bearish trend to a bullish one, rocking the markets significantly.
Policy decisions involving money may greatly influence the markets. Central banks in any country may decide to change an interest rate or there may be speculation about a possible future interest rate change. This may greatly influence certain currency pairs. For example, if a US bank announces a rate cut from 4% to 3% it may push EUR/USD to go up.
Reports such as the Non-Farm Payroll Report is worth noting as well when you are out there trading on the live markets. It might be a good idea to keep a yearly calendar of such reports you need to look out for. If you have an MT4 account, it might be easier to watch out for such news within your MT4 account. Want to learn how? Read our next section.
How to make the most of the News feature on MT4
Once you download the MT4 and you are logged in, make sure you click on the News tab in the user interface. This tab is found between the Account history tab and the Alerts tab.
It allows you to see all the major international news that have taken place within the last 24 hours. If there are no news in this tab it means that no news have happened in the last 24 hours.
In the context menu you can choose from a number of commands:
View: allows you to view the selected news. To read the news double click using the left mouse button on the topic.
Categories: When it has been a busy news day, several news stories might appear in your tab and you might need to organize them in categories of news. When more than one category of news has happened, a sub-menu appears where you can select a news category. You can also customize these categories and set up news categories according to how you wish (for example have the main category as Financial News and a subcategory as World News.
Auto Arrange and Grid: Auto Arrange automatically arranges columns when you change the window size while you can also choose to show or hide the grid to separate columns.
It is very important to make sure the Enable News option is ticked when you go to Terminal settings. Otherwise, you will not be notified of any news. Also, make sure your account has the appropriate rights so that news can appear in this tab, giving you an advantage of other traders when you are informed of important financial news.
What are you waiting for? Benefit from this feature and more when you sign up to a Sage FX account today.