Forex Trading based on fundamental news can be a tricky matter. You can have a situation where the numbers come out very good for the asset that you want to buy, yet the asset will drop in value. This happens because the forex traders in the forex market have certain expectations of what numbers will be in the report. They will speculate on the outcome before the economic report comes out and place their forex trades early. If the report does not live up to their expectations, it won’t matter whether the news is good or not, the market can seemingly move in the wrong direction as the early forex traders dump their positions. Forex Trading the news is very risky and should only be done after several years of forex trading experience.
Friday, April 26, 2013
Trading News in Forex Market
Forex Trading based on fundamental news can be a tricky matter. You can have a situation where the numbers come out very good for the asset that you want to buy, yet the asset will drop in value. This happens because the forex traders in the forex market have certain expectations of what numbers will be in the report. They will speculate on the outcome before the economic report comes out and place their forex trades early. If the report does not live up to their expectations, it won’t matter whether the news is good or not, the market can seemingly move in the wrong direction as the early forex traders dump their positions. Forex Trading the news is very risky and should only be done after several years of forex trading experience.
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