Here we look at how to use Forex trading news and mistakes to avoid.
First let's start with a rather startling fact:
100 years ago 90% of traders lost and today the ratio still remains the same.
The news has been discounted in a split second.
In today's world of instant communications news discounted immediately, until the moment when I saw him and had the opportunity to act on it, the moment was gone and the market is looking toward the future.
Will Rodgers once said.
"I only believe what I read in the newspapers"
Now he was joking, but it is amazing how many traders take what they heard on the news as a recommendation to trade.
News gets your emotions involved
People do not like to stand alone and the news reflects what the majority wants to hear, but that is totally different from what you have to do, to trade to win.
Most traders lose and collectively listen to the news, so if you avoid it, you can step aside and not let your emotions get involved.
If you do this, you can trade in a disciplined way and join the elite minority winner.
If you use forex charts and simply follow price action, you are far more likely to be successful you will be following the news.
WHERE news can help you!
There is a great way to use the news:
If you see a very bullish or bearish market and the news supports the prevailing opinion, but the market is not responding as it should - it's time to see the contrary trade and time your entry points via forex charts.
It is a fact that:
Bullish markets collapse when the fundamentals are most bullish and bearish markets rally when the news is the most bearish.
If you can look for these turning points in your map and find the news suddenly stops pressing on the market the way it should, contrary trade is developing a large and lucrative business is shaping up.
Finally
how to use forex news outlined above, is a very powerful tool, but a very different way most forex traders use it!
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