I just don’t do it! I am a technical forex trader, but I do incorporate fundamentals into my trading strategy. Whether I take a contrarian view point or use the fundamentals as a catalyst to impending technical developments I am always aware on how news events affect the forex market.
In my trade journal (if you are not keeping a record of your trade and the events surrounding your trades you are just plan wrong!) I note the upcoming events and plan for actions around any scheduled news release. If I don’t want to play I will close my position and wait for 30 minutes and trade the trend. I will treat the price before the news as support or resistance and wait for the overriding trend to continue.
Unexpected news often spikes the market, but beware of unsustainable news as it is unlikely top change the long term trend. I never enter a trade without a stop-loss period!
Like I said, the fundamentals are the catalyst but technicals are the roadmap! You can find more forex strategies at FX Trade Central.
Visit FX Trainer to fulfill your forex educational needs.
Wednesday 22 March 2006
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