Latest forex market news is important to the traders because the traders act on the news to make big profit but before acting on the news the traders must be skilled in trading the news. Is it the correct way for a trader to open big positions after listening something in news? Most of the traders trade this way but they may lose their money. So acting on every news story and throwing your money in the market can be a lumpish act that the beginners must avoid.
What makes a forex trading news story important?
The news of the forex market in itself is not that much important but it is the reaction of the traders that makes it important. A news story that receives high reaction from the market becomes important but on the other hand the news story that does not receive high reaction from the market becomes less important. The high reaction means too many traders buying or selling the currency pairs as advised in the news.
What does a successful trader do?
A successful trader not only studies the news but also observes the reaction of other traders carefully and waits for the right time to place any buy or sell orders related to the news. More than 90% of the traders lose their money in the market and these traders are those who move in the crowd and trade when everyone is trading. If you do not want to be a loser then avoid moving in the crowd.
What could be the perfect way to act on the news?
The perfect way to act on the news is to wait for the turning points. A turning point could occur if bullish news fails to drag the market higher or if bearish news fails to bring the market lower. The turning points will help you to study the market sentiments so wait for the turning points to occur and then act. Trade the news safely and wisely when you see the turning points.
Is it safe to follow the advices by the expert?
The role played by the forex expert is same as the role played by the forex trading news so do not blindly follow the advices of the expert because if the market reaction may be opposite to what was predicted by the expert. Who will be the loser if the market reaction comes opposite to what was predicted by the expert? The answer is you. Yes, you will be the loser and nothing would happen to the expert who gave that advice. If you are following the advice of the expert or acting on the news then do not forget to follow the stop loss and the target told by the experts. The stop loss will help you to minimize your loss if the market movement starts in the opposite direction.