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Forex News Trading – Why should you NOT trade this!


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Forex News Trading – Why should you NOT trade this!

gbpcadnews.gif

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 didn’t 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.

This is just one of the ways we trade, Check out our Winning Asia Forex Mentor Price Action Forex Course where i teach you the exact FULL Forex Trading System that i personally use.

See you on the other side my friend,

Asia Forex Mentor

Ezekiel Chew

Asia #1 Forex Mentor

www.asiaforexmentor.com

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Even with a currency whose country has an economic news release, money can still be made but I agree with you that traders shpould keep off about 2 hrs in advance and depend on the buffer. I would recommend that traders keep off entirely from tne market because when the news is eventually released, other pairs may also be affected.

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Simply because trading in times of great danger, because the news secret and climb down too quickly enables you to profit in the Forex well so I advise not trading in the time of the news

Every news here has the different impact to the movement of the price in forex trading here. Some news have low impact, medium impact and high impact here. If the news has high impact to the movement of the market price, then we have to be careful. we can make money, but the risk is about the same

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News is for scalper only and its not for long term trader. Its scary in long term trading since it will cause a lot of losses if you're too uncertain but for short term two minutes scalping then its ok. Long term trading can be more consistent and if you're a day trader or full time trader then longer term offer better results. I do see long term as more profitable and more sure for me. I entered the market at the lowest price so the price couldn't hit any lower right. So, I will only wait for it to rise higher and then take profit so I win in that kind of games. 

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Traders can be able to trade in news and also be able to make huge profit from this type of trading if they know how to trade in it and how they can analyze the forex market by news trading. Forex trading business is a type of business that the trader can trade when he or she is able to have a very good trading knowledge of it.

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We should also realize that news trading is a very difficult form of trading that is not easy to come by. Sometimes, it is better avoided when we really don't have much skills to trade in it or to analyze the news. We shouldn't only look at the potential of making profit from it but also that of losing.

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Yes news trading is a difficult form of trading not doubt if you check one of my thread you will see that I posted how I lost about $500 in news trading this was my real money which I just deposited to start trading and this happen so I couldnt look back.

That is why I say analysis hold the major key to succeesful forex trading

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Analysis is the main thing in Forex and even those who trade with the news analyze the news as well. I try is important for all traders to understand that Forex as a business also reflects from news releases and that is why it looks as though those traders who can analyze both fundamentally and technically understand the market more.

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