Daily Forex and Daily News


Assuming the trader is very experienced and competent, he will independently trade the Daily Forex market. He can only use automated help when he is resting, but for the most part his trading can be done by "flying over the seat of his pants".

All these independent traders will have different strategies. Some will trade using charts only, some will only trade on price, while others will trade using Daily News as indicators that dictate their game.

An extreme example of how the Daily News can affect the Daily Forex market is what happened on 9/11. That fateful morning, as most Americans watched the horrors unfold in stunned silence and disbelief, the dollar began to fall in value. Currency traders in faraway places noticed the decline and saw the news. While they also watched in horror, many of them were automatically trading dollars for other currencies and making huge sums of money. They immediately bought the U.S. pound or Japanese yen. The dollar dropped for an extended period of time and within days, as the dollar began to recover, traders bought much higher dollar amounts than they sold. The Trading Circle, a trader who initially sold half a million dollars, probably completed one million by the time the dollar was redeemed.

Similarly, any bad economic news can affect the currency that is forcing it on others and during that time wealth can be created (and lost).

It is also a scenario when there is bad political or catastrophe news. Natural disasters, such as earthquakes, tsunamis, or severe flooding, can cause currencies to fluctuate.

In fact, hardly a day goes by today without breaking through the news that can flip currencies.

For beginners in the Forex business, don't be stupid enough to start daily forex trading solely on News Stories. Here's my tip for you for what it's worth – buy an automated system like the one I use, learn the ropes from my support team, deal with a paper or demo store in a few weeks and finally start trading small. Do not use levers until you are very competent.