Forex News Trading Why should you NOT trade this!

[ericnyamu]

trading on news IS possible SOME times . what i mean is that if you see agreeing price action they you might want to take note of that currency pair and with god risk management you can enter the trade . for instance if you see a bearish bar just before news it might tell you the news is bad and you can enter short .

[forexprophet]

Trading news is definitely like walking on a wall blind folded. You should always be aware of the news releases that have high impact on the economy like FOMC meeting, Interest rates, Unemplyment claims, NFP etc., Only the big institutional traders are making use of this types of events. It can wipe all your hard earned money in a fraction of seconds if you are on the wrong side. Most of all your positions will not be filled at the right price you wanted to get in to and spread can be like megatron.

[ForFoReX1]

My friend does not understand what you mean by I hope you explain in some detail and objectivity because I read the topic several times, but I did not understand something from him
And if one member has read and understand the mistake, then my mistake

[asiaforexmentor]

Forex News Trading Why should you NOT trade this!



Forex trading pair: GBP CAD
This is one of a good example which is worth mentioning.
Alot of people have asked me, Ezekiel How do you trade the news?
My answer is simple: I rarely trade the news. and i go on by saying that i will usually avoid taking trades when the high / medium impact news is coming in 2 hrs time. And i would only enter the trade AFTER a minimum of 10 minutes when the news is announced.
Why people may say. Trading the news can make you fast money.
Yes it does. But trading the news will NOT make you consistent money. Nor will it make you a full time trader.
Besides its Risky and its like you are laying your stakes in the hand of god.
Forex News Trading Why should you NOT trade this!

If you ask me, i prefer trading safe and trading with a plan. I do not like to leave my fate of the trade on luck by predicting the outcome of the news.
Which is why i do not trade 2hrs before hand for any affecting pair.
In the chart above, forex pair: GBP CAD
There is an upcoming news on the GBP in 48 mins time.
I spotted the pin bar before hand , but i didnt take the trade.
Because Rule no. 1: Do not take trades that have news impact with a buffer of at least 2hrs advance.
So what we can see from the chart is that the market has gone wild, and people are expecting good news on the GBP which resulted in the spike of any GBP pairs.
Had we taken the trade, we would have gotten stop out and made a loss.
I hope you got something out of this forex news example.
Ezekiel Chew
Asia #1 Forex Mentor
www.asiaforexmentor.com