Forex Trading Blog

Trading the various news events is popular in the FX markets.  It is very tempting to want to jump into a trade right after an economic report is released and make 100 pips in a minute.  Who wouldn’t want to do that?  However it isn’t that easy.  By the time we see that release and can react, the market has already started to move.  Usually by the time you are filled, the price has moved quite a bit from where it was before the release and a big portion of that 100 pip move may already be over.  That calls for a change of strategy.  Unfortunately, many new traders think that means trying to find out what the release is before anybody else so they can place their trade first.  But that is more wishful thinking than a change in strategy.  FXCM does conduct a webinar on how to trade the news events that does include three specific strategies that increase your chance of success.  The schedule can be seen at fxcm.com/webinars-page.jsp.  But one thing you will not hear in the webinar is what news service can get you the number first.  Instead you will hear about how to react to the opinions of other traders and how to take advantage of those who think that being faster is better.