Don't trade on news release if you don't understand market

[Cutiekc]

News assists on making prediction in the sense that when we have good source of attaining accurate news like the cnn on TV then we would have to be more cautious when we have some serious news because they do reflects in the market. But then, we ought to be sure before following news.

 

[Daisy]

News can be so bad for your long term trades. I mean if you leave it over night, it will either wipe out your account or you will be taking out at a loss. Cause some bad news are so powerful that the pairs will not behave like the way you think it would. I mean recently, I saw the huge difference the US Capitol hill debt ceiling debates made on certain pairs and the shut down of the White House as well. News are so detrimental so we must keep up with it daily.

 

[Pettyeve]

It is not good for a trader who don't know how to trade on news to trade on it. High impact news like the NFP will make the forex trading market to make a sharp movement. This thing will also cause some major movement that the trader who does not understand it will fall easily to it.

 

[Decub]

It is more than an advice because news can easily get you confused when you don't know how to trade with it. It is always better for a trader to trade when he has a clearer vision of the market. A good understanding of the market will give a trader a better knowledge than trading when things look strange.

 

[kasual]

High impact news can create spike in market. Which enabling traders to react fast. Sometimes the market move around 100 pips first before it start to go against them, if traders late to close positions, their profit will turn to loss result. So, I do agree, if traders don’t understand market situations, and don’t know how to take advantage from high impact news, better they are stay away from market.

 

[rexway]

that is why before we attempt to trade in forex if the news is been release then I guess that we must always be sure that we allow some comfirmation to take place before we can go ahead to do just that trade which we where waiting for

 

[tray]

Yes its very risky to trade on the market which you have no comfirmation this is far more than risky because you might even fail when the reversal occure its always important to allow the trend give clear indication of the direction

 

[Svetlana Loboda]

As we've already known, there was important event today: RBA Interest Rate decision.

Interest rate decreased 0.25%, from 2.75% to 2.5%. Everything happened as many analysts expected.

Since interest rate decreased, some of you might think that AUD must decline after rate cut. Well, let's watch this:

AUDUSD: +0.63%
AUDJPY: +0.46%
EURAUD: -0.51%
GBPAUD: -0.61

AUD has been rising after rate cut but why? This is called "buy the rumour, sell the fact" and Wikipedia explains:


Therefore, if you are not experienced traders, especially beginners, you should never try to trade on news release.

By and large, that’s the true fact! News trading is always difficult; the actual meaning of news events are too complicated; only pro traders can understand the order flow behind the specific news session! Till now I am learning.

 

[Lee Mark]

By and large, that’s the true fact! News trading is always difficult; the actual meaning of news events are too complicated; only pro traders can understand the order flow behind the specific news session! Till now I am learning.

Nice to know that, you are learning and preparing yourself! Yes, don’t jump before until you are not sure about your trading skill! By the way, I am a news trader, I always enjoy high voltage news session whatever the trading result is!

 

[lioneld]

I think one of the worst mistakes one would make is trading on news when he isn't sure of how the market is moving. More so, to avoid trading with reliance to data supplied by unconfirmed Forex news sites.

You are right! But I see, many new traders are doing news trading although they have no knowledge on the fundamental analysis! They are basically trying to make quick money by using high voltage news sessions!

 

[LorrainMor]

Making trading decisions based on significant market news can be a good idea but if you are unable to take answers from the news then it is better to change the use of analytical tools. You can move forward to easier use of analytical tools, like pivot pints, candle stick charting, moving average and forex signals. Use of technical indicators is somehow easier than use of fundamental perspective of analysis.

 

[lioneld]

Making trading decisions based on significant market news can be a good idea but if you are unable to take answers from the news then it is better to change the use of analytical tools. You can move forward to easier use of analytical tools, like pivot pints, candle stick charting, moving average and forex signals. Use of technical indicators is somehow easier than use of fundamental perspective of analysis.

Agree with your last line; but I see chart analysis provides more info than the technical tools.

 

[Oscar Shumack]

Yes. It is very important to understand the market.

 

[Aaron_0]

Avoid trading during news releases if you lack understanding of market reactions. News can cause volatile price movements, leading to unpredictable outcomes. Focus on learning market behavior and interpreting news impact before engaging in trading during these events to mitigate risks.

 

[Bahiya Shinam]

Avoid trading on news releases if you don't understand market reactions. Sudden price swings can lead to unpredictable outcomes. Focus on understanding how markets typically react to news and practice on demo accounts before risking real funds.

 

[Aaron_0]

Avoid trading during news releases if you don’t fully understand how the market reacts. News events can cause unpredictable volatility, making it difficult to predict price movements. Without a solid grasp of the potential impact, you risk significant losses. It’s better to wait for stability or practice with demo trading.

 

[Ethan]

Forex news and events are definitely one of the things to be concern of and become aware of the possible effect on the market. Thus, we should understand it's impact in the market and when it will happen if this will be before, during or after the news is released. While, many traders take advantage of it those fundamental traders.

Forex news and events significantly impact the market, and understanding their timing and effect is crucial. Fundamental traders often capitalize on this by analyzing economic data and news releases. Being aware of these events can help traders make informed decisions and better manage market volatility.

 

[Harvey]

Don’t trade on news releases if you don’t fully understand the market’s reaction. News can cause sudden, unpredictable volatility that can wipe out positions quickly. Beginners should focus on learning price action and fundamentals first. Only trade news after gaining experience and developing a solid strategy to manage risk, because without proper knowledge, trading during news events can be very dangerous.