Forex Software Trader, have you heard the news? There’s an election going on! What does that mean you ask?
If you’ve been reading my How To Trade Forex series, you’ll hopefully remember my comment around avoiding trading during big news events …
… or at least you would remember it had I remembered to include it in that post! My mistake!
However, by now you should have some idea as to why you should not carry out forex trades during major news events. Yes, that’s right – the market becomes more volatile and less predictable. The forex market may even lose some of its liquidity for a bit, depending on the nature of the news event.
Simply put, unless you’re an expert, it becomes easy to lose your shirt … and actually, even the experts can lose their shirts quite easily. Forex Software Trader, this is not the time to be playing in the market.
When this post goes out the election countdown will be in its final day … and chances are the Monday before election will be extremely quiet on the trading floors. On Tuesday the markets will be sitting ready to move dependent on who wins the election – a reaction to the news of the winner is guaranteed.
Do you know who’ll win? Do you know what direction the markets will move?
I don’t … and I’m guessing you don’t either Mr/Miss/Mrs/Ms Forex Software Trader.
Today’s how to trade forex lesson – avoid trading during big news events, they’re too unpredictable and therefore easy times to lose your forex trading profits.
Tuesday will be the biggest news day for a long time, and ultimately shapes the future of America and the world.
I feel it’s a good time to take a break from the trading for a couple of days – better to be safe than sorry.
If you’re sick of all the election coverage though, now is a good time to read up a little more on Forex Funnel, our favourite forex trading software system .
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