TIP: Can I trade before important news?
|Keep in mind that fundamental analysis is an effective resource to forecast supply and demand for a certain currency, but not to forecast exact exchange rates. So the answer is yes, you can enter the market when a report is about to be released, but you better make a combined use of fundamentals with other analytical resources.
For example, you might get a clear understanding of the direction of the US economy by studying the relationship between the trade balance and the gross domestic product, but how do you translate that in entry and exit points? A great starting point is undoubtedly by studying the fundamentals and identifying those edges that you want to trade upon - the herewith disclosed studies are meant as edges on which you can develop your trading model. But in order to find entry and exit points, a combination of those edges with technical strategies is needed. This combination is what you will finally use to translate the raw market data into usable entry and exit points. Read More
Do you want to learn more?
News Trading - Rick Wright
How to trade the news - Rob Colville
News and Economic Data That Affect Forex Market Movements - Mario Sant Singh
Does Forex News Trading really work?- Jarratt Davis
Two Cases When Trading News Events Goes Wrong - Yohay Elam
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.