Forex News

Thursday, March 27, 2008

For those of you who trade purely on technical study, you must avoid news hours. During news release, a different kind of traders will enter the market. They are aggressive, fast and well equip. They work in groups and using syndicate trading to force the market to their favour. They enter and leave the market in short period of time taking whatever profit they can. They do not stay in the market.

Compare to us technical small fish, these news traders are much bigger. In order to avoid getting fried, technical small fish must leave the arena when the news traders enter. In order to know when these news trader enter we must know when important news release are made and for that reason I use Forex Factory calendar.

Funny how people try to trade during news hour while I try to avoid them. Look at the calendar and understand when high impact news are released. Pay very close attention to red and orange icon.

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