Daily Forex Market News Do you really need daily news?
Who Are News Traders? <ul><li>News traders are people who trade exclusively on economic news announcements. Their aim is to make the most profit in the shortest time possible. It’s not unusual to have a market movement of a hundred pips of more, just 5 minutes after the news is announced. </li></ul><ul><li>News trading is a highly risky style of Forex trading, and is generally not recommended for novice traders. </li></ul><ul><li>Amateurs who think news trading is a way to make easy money are often taught an expensive lesson by the market. </li></ul>
What If I Don’t Want To Trade The News? <ul><li>For those who do not wish to trade the news, they often wonder if they should pay attention to the daily market news at all. </li></ul><ul><li>In my humble opinion, the answer is generally ‘no’. </li></ul><ul><li>The fundamental daily news is usually slowly incorporated into the market price, so a competent technical trader will already be able to take into account any unusual changes in price action. </li></ul>
However! <ul><li>There are of course exceptions to this rule of thumb. </li></ul><ul><li>While you probably don’t need to pay a lot of attention to the every-day news announcements, there are some economic news data release dates that you should avoid trading in. </li></ul><ul><li>These are the same economic news announcements that the news traders trade on. Some examples include the non-farm payroll , ISM manufacturing and FOMC meeting announcements . </li></ul><ul><li>The high price volatility experienced during these periods are best avoided by most traders… it’s better to keep your capital protected than to risk it on highly risky trades. </li></ul>
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