Reading the financial news papers, listening to all the financial television stations,
studying the economic reports, and visiting all of the chat rooms can be a big challenge.
You can lose prospective of why you are trading in the first place if you get caught up in
to much news. It is a good forex strategy to know some of the major things that are going on but to be a
good trader you do not need an over dose of news.
You need a combination of fundamental and technical. I lean more to the technicals.
Some of the things that I see happen to the traders that over dose on news are: Trying
to pick which way the market will go. Getting hooked on an opinion of what is going
to happen and lose all objectiveness as to what might happen. The market moves in
trends and the news will cause little bumps in the direction of the trend. When the
news dust settles the market returns to the major trend it was on. You can get spike
fever, chase the market movement and get caught from both directions in the market.
Even with all the news research one will not be the first to know what the market will
do based on the news alone. So by the time the trade comes along you are trading
discounted news that has already been factored into the price of the market. So By
using news to trade forex you are taking a gamble on which way the market will go.
The Market can make a positive move with bad news and a negative move with good news.
It is all tied to the sentiment of the market the way people react to the news not what
the news is.