it seems that everyday there is some sort of news report that would affect currencies, at least according to forexfactory. Almost everyday it seems that there is a red alert.
So does that mean that if you’re not trading the news, which I’m not, I should get out for each event? I am still having a hard time grasping some of the fundamentals…
I wanted to play chess better so I practiced and picked up chess books by highly proficient players. I wanted to learn forex trading for the last 3 years, and I’ve started to read books and use a forex demo account.
You got to be aware of whether or not interest rates are heading up or down and make your bids accordingly. Are commodities headed up or down and bet on currencies accordingly.
What are you doing to identify basics, drawing trendlines, identifying support and resistance, understanding indicators and candlesticks or bars or both, on charts, know when news events may affect the currencies that you are trading. Are you keeping a journal? Have you noticed trends in quieter and less volatile markets and noted the probable price targets? If you can then you move on to increasing your successful trading odds.
mdeth makes keys points, as for which fundamentals to be aware of - it depends what currecies you trade, for sure interest rates(and rate statements), NFP for US, GDP sometimes, CPI sometimes, but it depends as well on what the market is doing. The fluctuations sometimes during this time are quite “indecisive”. They constantly move up and down 30-50 pips, and that is why your likely to get stoped out even before the decision comes out. That may help in that situation but when they are doing nothing, it is best to stay out too, because a big move can occur as well in no time since everyone is just waiting. But also just because it makes a big move doesn’t mean it has anything to do with the news. Many times the market will be moved largely due to unforseen volume.
Anyways hope this helps a bit, best to ya!
Stay Cool, Take it Easy!
Ok, that all makes sense and hopefully with more time i will be a better trader understanding the fundamentals.
thx for your replies…