| Today, forex trading news is more plentiful than | | | | News Gets Your Emotions Involved |
| ever. There are numerous sources to choose from | | | | Humans don't like to stand alone and the news |
| and there all delivered at the click of a mouse, so | | | | reflects what the majority want to hear but that is |
| you can get breaking news whenever you wish. | | | | completely different from what you have to do, to |
| Here we will look at how to use Forex trading news | | | | trade to win. |
| and mistakes to avoid. | | | | The bulk of traders lose and the bulk listen to the |
| First let's start with a rather startling fact: | | | | news, so if you avoid it, you can step aside and not |
| 100 years ago 90% of traders lost and today the | | | | let your emotions get involved. |
| ratio still remains the same. | | | | If you do this, you can trade in a disciplined fashion |
| This is despite better more frequent Forex news, | | | | and join the elite minority of winners. |
| better computers, more powerful software and | | | | If you use forex charts and simply follow price |
| more information than ever on the markets. | | | | action, you are far more likely to be successful than |
| The fact is knowing the news won't help you win - in | | | | you would be by following news stories. |
| fact, it generally helps traders lose! There are 3 main | | | | WHERE THE NEWS CAN HELP YOU! |
| reasons for this: | | | | There is one great way to use the news: |
| News is discounted in a split second. | | | | If you see a very bullish or bearish market and the |
| In today's world of instant communications news is | | | | news supports the prevailing view but the market |
| discounted immediately, so by the time you have | | | | does not react the way it should - then its time to |
| seen it and had a chance to act upon it, the moment | | | | look for a contrary trade and time your entry points |
| has gone and the market is looking toward the | | | | via your forex charts. |
| future. | | | | It's a fact that: |
| News is Stories | | | | Bullish markets collapse when the fundamentals are |
| Those analysts are so convincing with their | | | | most bullish and bearish markets rally when the news |
| arguments! Their normally great at explaining what | | | | is at its most bearish. |
| has happened - but you can't trade off what they | | | | If you can look for these turning points on your |
| say, as they have no idea what will happen - there | | | | charts and find the news suddenly stops pushing the |
| simply stories and opinions. | | | | market the way it should, a contrary trade is |
| Will Rodgers once said. | | | | developing and a big profitable trade is shaping up. |
| "I only believe what I Read in the papers" | | | | Finally |
| Now he was joking, but its surprising how many | | | | The way to use forex news outlined above, is a |
| traders take what they hear on the news as a | | | | very powerful profit tool but completely different to |
| recommendation to trade. | | | | the way most forex traders use it! |