Why Forex News?

Why Forex News? Much has been said about Forex trading strategies. Find a system you’re comfortable with, and stick to it. There’s no need to reinvent the wheel. Some very smart and successful Forex traders have spent a lot of time developing these strategies and made them presentable in an “if I can do it, you can do it” format. So, Why Forex News?

Not much has been said about Forex news. And the obvious question begs: If charts, strategies, and discipline are the keys to successful Forex trading; what does the news have anything to do with anything? Let the news be for people who read newspapers, you might say. As long as you’re going to be a technical trader, there’s really no need to have to put up with all that background noise. Why should Forex news affect Forex trading?

All valid points. The Forex news, although it should not dictate the technical trader’s buying and selling, completes the picture, nonetheless. It more or less offers the answer to the question, ‘why’, as opposed to ‘how’. At the end of the day, it’s going to be the ‘how’ that is going to affect your account balance. But it’s the ‘why’ that will affect its direction.

Why Forex News?

Forex news offers a “heads up” to the Forex trader. It can give you an inkling as to whether a trading range is expected, or a break-out might happen at any moment, or if a trend is going to be maintained. If the news is filled with bearish reports, it can affect the way you look at those charts you have in front of you. If the Fed is about to come out with a major report, it might be time to go get a cup of coffee and let the market react without you. There will still be plenty of opportunities once the dust settles. There’s no need to get into the crap-shoot.

The news must be looked at as a forecaster. If you’re reading the news as an explanation of what has already happened, then you’re just looking for excuses and you don’t need Forex news articles for that. However, if the relevant items are viewed as an indicator of a possible future trend, then it has served its purpose. Sometimes, even in Forex trading, knowledge pays off.

Like most other things in this business, there are no hard and fast rules. There are tools to lower your risk and increase opportunity. It is never one way or another. It’s like a painting of a house on a piece of ground. Although that could be the whole picture, there still seems to be something missing. It needs atmosphere. The Forex news items provide the atmosphere to make your trading picture complete. 

Why Forex News?