Hello guys. I did not find any thread to answer my questions so I started a new one, I hope it’s OK. To start with, I must say the world of FX is new to me so I have not mastered it yet
I know that using all parts of your game, including the fundamental part is very important to reach FX-success. That is why I started this thread because I want to know what to look after in the news, what are the important news in your opinion? Because I’m sure there are news that are quite irrelevant when trading FX. When saying news, I do not mean big events like Fed speeches, NFP-releases or other big releases, just ordinary daily or weekly news.
The question is simply: How do you “separate the sheep from the goats” when talking about news?
Sorry if the English in this post isn’t perfect :21:
Greetings all the way from Sweden!
It all depends what type of trader you want to be. If you are a technical trader then all you need is a forex calender (this site or forexfactory are both good). I wouldnt enter a trade a few minutes before a annoucement or for a while after. As i trade just the higher timeframes the news does not really effect my trading to much.
I did ask in another thread that when using price action for trading (candlestick patterns etc) does it matter if the news caused a certain candle to move as it did. I was told my the experienced guys that it doesnt matter and can still be used as a valid entry signal etc. Hope that helps.
I guess that I qualify as a short term technical trader. Usually I hold the same position for a couple of hours, no longer than a day. But sometimes I look for longer trades because I tend to find it easier to find valid trends, formations and candlestick-patterns when using a higher timeframe. What news do I need to look at when trading with 1day or 4hour timeframes then?
Are you sure you dont mean Fundamental mate?
No if you are a fundamental trader you need a lot more than just a economic calender! I believe all technical traders should keep an eye on a calender of upcoming annoucements. Even if you dont believe in fundamentals having an affect on your tradin style, you still dont want to be entering a trade a few minutes before a major annoucekent.
The odd part is that the fundamentals have a lot of uncertainity so relying only upon them might be a big mistake!
A volcano in new york would be one to watch for.