What challenges do do you get when trading during news,of any currency
Spikes that take out stop losses and massive increase in spreads that turn winners into big losers.
That’s why I avoid trading those affected currencies on big news days until after the news is over. On big news days I have other currencies I trade that rarely have any big news.
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This true,it has also affected my trading
It’s not enough to just understand the number itself, but how the market reacts to that number. Was it expected, higher, lower, and degrees of higher or lower.
Another thing to note is that even if the particular news release came out in the same fashion during the last release, the market, given the current trading environment, might react to the newest release in a completely different way.
Experience plays a big part in understanding the possible outcomes and how the market might react, but not all traders are coming from the same perspective.
That’s generally why new traders are suggested to stay away from trading the news.