Forex News Trading Strategy? (Answering a Subscriber's Question about the GBP/USD)
This is a video about a forex news trading strategy.
Trading forex is difficult. Make no mistake about that. One thing that doesn’t help is called news announcement, which can be considered adding fuel to the already violent fire of the markets. Based on that simple notion, many forex traders tend to look for a forex news trading strategy that will bypass the crazy volatility problems created by the forex news.
By watching this video, you’ll understand (hopefully) that forex news don’t necessarily change the mechanics of the market or the market logic per se. The news only add fuel to the fire as I already pointed out. The problem is that sometimes the market logic is not really that easy to read, and beyond the imminence of a major news announcement, you might have some market maker trying to pull off his cure tricks in the market. That’s a triple problem as you can see.
The fact is that a forex news trading strategy is vain by definition. By understanding the market logic, you should be able to survive the tsunamis created by some news without much problem. Beyond that, you can also apply sophisticated techniques like the Parrondo’s Paradox, which is a technique borrowed from game theory, and that happens to be quite useful in situations like this.