Forex Trading – Using Economic Reports & News for Profit

the Internet has seen enormous growth in both quantity and speed of news delivery, and many novice traders that will help you win, but in most cases it simply helps them lose and lose quickly.

If you are looking at economic reports and news you need to consider one important fact first:

50 years, 90% of foreign exchange traders, and now lost the character remains the same - despite advances in forecasting and speed of news delivery.

Most recruits who watch the news or changing the economic reports and fail miserably in forex trading.

Why?

First, they do not realize that the news is discounted in the market right now and it's more true than ever today, no news is available at any corner of the globe in a split second.

Second, if you see the so-called expert talking about why the currency falls May sound convincing, but that does not mean that the market will go the way they say.

A better way to trade

For most novice traders a better way of trading is easy to follow charts and using technical analysis.

As marketing is a discount mechanism can easily download all the grounds will appear in the price immediately.

Then you can simply follow the reality, rather than trying to guess where the other currencies will go.

You will shop at real prices, not a prediction.

Keeping Emotions Out of Trading

When you hear a convincing argument is easy to let your emotions get involved and trade with the losing majority.

Technical analysis allows you to set back from the market and see things without emotion and gain a clearer perspective.

The fact that news bullish or bearish for the currency does not matter where they go.

If the major currencies change the facts:

They tend to fall hard when they are the basis of the most bullish and rally when the most bearish.

Will Rodgers famously said:

"I just believe in what I read in the newspapers"

He was joking, of course, but many forex traders to do exactly that - believe what they read and heard, and then lose.

Trying to trade off news for most retailers is a complete waste of time and energy and see them lose - not make the same mistake.