Scalping & News trading & why you shouldn’t.

News trading was my next step along the path to enlightenment, NOT. Every day in forex there are news releases, National Banks eg (Bank of England Interest rates decision), governments release unemployment details. Any of these can cause a major shift in the value of a currency in seconds.

Some experienced traders do make money trading the forex news. If you are new to forex then I strongly recommend that you leave it well alone. Personally I still avoid it.

To me it is forex at its silliest. You will soon learn that forex is completely & utterly illogical. Trying to dive in the time of a news announcement is fraught with danger. In my opinion,  news trading the forex market is simply gambling.

The price can move rapidly against you in seconds. You bet that as the news was good for a particular economy that the currency would go up. Logical right ? With forex NO!

For example: News comes out saying that unemployment has fallen dramatically in the U.S.A which should be good news for the american economy. You bet that the $ will go up. Suddenly the price of the american dollar collapses – I have seen it happen time & time again.

You just lost a chunk of money & then the experts will come out with some rubbish to justify the move. Really, I suspect that they are more interested in justifying their jobs !

Non Farm Payrolls (NFP) & Why you should avoid it like the plague

News trading was the best way I ever found to lose money in forex. Particularly USA unemployment news, which comes out the 1st friday of the month. It is known in forex jargon as Nfp (non farm payrolls). I never trade this now & rarely trade fridays in general.

This is the most volatile, regular event in the forex calendar. The morning trading before NFP is usually stagnant, with hardly any movement. Then up to an hour before the price can start to go haywire, certainly in the 15 minutes before the news (13.30 gMT). I will explain in greater detail in the course.

I also experimented with scalping (getting in and out of trades quickly for small gains) again a waste of time as well being very stressful. 100 small winners can be wiped out by 2 or 3 losses.

There is an easier way, Check out the Forex Mentor Pro day trading system. Members are reporting gains of 4/5/600 pips profit in their 1st week !!

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