Daily Forex and the Daily News
Daily Forex and the Daily News – Assuming a trader is highly experienced and competent he will trade the Daily Forex market on his own. He may only use automated assistance when he rests but for the most part his trading may well be done ‘flying by the seat of his pants’.
All of those independent traders will have different strategies. Some will be trading using only charts, some may just trade by the price and others will trade using the Daily News as the indicators that dictate their play.
An extreme example of how the Daily News can impact on the Daily Forex market is what happened on 9/11. On that fateful morning while most Americans were watching the horrors unfold in stunned silence and disbelief the dollar began to fall in value. Currency traders in far flung places noticed the fall and saw the news. As they too watched in horror many of them automatically traded the dollar against other currencies and made huge sums of money. They bought the U.K. pound or the Japanese Yen immediately. The dollar fell to an all time low and within days as the dollar began to recover those traders bought back much larger amounts of dollars than they had sold. In round figures a trader who had sold half a million dollars at the outset probably ended up with a million by the time he bought dollars back.
Similarly any bad economic news can impact on a currency forcing it down against the others and during that time fortunes can be made (and lost).
This is also the scenario when there is bad political news or news of a disaster. Natural disasters too, such as earthquakes, tsunamis or severe floods can cause currencies to fluctuate.
In fact nowadays scarcely a day goes by without some news breaking that can rock the currency boats.
For beginners in the Forex business don’t be foolhardy enough to start daily forex trading based solely on the News Stories. Here is my advice to you for what its worth – purchase an automated system like the one I use, learn the ropes from your support team, do paper trading or demo trading for a couple of weeks and finally start trading small. Do not use leverage until you are very competent.