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 Forex News Trading – Why should you NOT trade this!

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asiaforexmentor



Male Number of posts : 53
Age : 27
Location : Singapore
Registration date : 2011-03-28

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PostSubject: Forex News Trading – Why should you NOT trade this!    Forex News Trading – Why should you NOT trade this!  Icon_minitimeMon Nov 28, 2011 6:10 pm

Forex News Trading – Why should you NOT trade this!

Forex News Trading – Why should you NOT trade this!  Gbpcadnews

Forex trading pair: GBP CAD
This is one of a good example which is worth mentioning.
Alot of people have asked me, Ezekiel – How do you trade the news?
My answer is simple: I rarely trade the news. and i go on by saying that i will usually avoid taking trades when the high / medium impact news is coming in 2 hrs time. And i would only enter the trade AFTER a minimum of 10 minutes when the news is announced.
Why people may say. Trading the news can make you fast money.
Yes it does. But trading the news will NOT make you consistent money. Nor will it make you a full time trader.
Besides its Risky and its like you are laying your stakes in the hand of god.
Forex News Trading – Why should you NOT trade this!

If you ask me, i prefer trading safe and trading with a plan. I do not like to leave my fate of the trade on luck by predicting the outcome of the news.
Which is why i do not trade 2hrs before hand for any affecting pair.
In the chart above, forex pair: GBP CAD
There is an upcoming news on the GBP in 48 mins time.
I spotted the pin bar before hand , but i didn’t take the trade.
Because Rule no. 1: Do not take trades that have news impact with a buffer of at least 2hrs advance.
So what we can see from the chart is that the market has gone wild, and people are expecting good news on the GBP which resulted in the spike of any GBP pairs.
Had we taken the trade, we would have gotten stop out and made a loss.
I hope you got something out of this forex news example.
This is just one of the ways we trade, Check out our Winning Asia Forex Mentor Price Action Forex Course where i teach you the exact FULL Forex Trading System that i personally use.
See you on the other side my friend,
Asia Forex Mentor
Ezekiel Chew
Asia #1 Forex Mentor
www.asiaforexmentor.com
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