Is It Necessary To Spend Time On Financial News When Trading Forex
In today forex faq, we have a question from one of our fellow traders. She is asking me whether I stick entirely to those strategies that I teach in my forex street university course or do I also take note of financial news when trading.
Below is the question:
When you trade, do you fully rely on the strategies you taught in your course, or you also spend lot of time on studying the economic or other financial news related to trading?
First of all, I am a pure technical trader which means that I totally do not read any financial news when trading.
I am not saying that financial news is not useful for trading but I just want my trading to be as simple as possible. It will be very tedious if I have to read news which is too dry for me personally.
I am a technical fanatic and I love to look at charts and indicators.
Therefore for all those strategies that you guys have learned from me from my Forex Street University Course, they works purely on technical analysis and do not need you to read any news in order to profit from it.
Personally I feel that the problem with news trading is that it involves too much human sentiment into it. Unlike technical analysis, human sentiment is something that we can’t predict.
For example, when a news is released, some traders will think that the market will move up while there are another group who think that the market will move down.
That is why you sometime see the price making sharp up move and then sharp down move.
However since 2009, I have been trading with my strategies without looking at any news. Most importantly, I manage to stay profitable for so long without failed and that is why I will not encourage my students to look at the news when trading.
I hope that I have answered your question and do feel free to email me if you have any problem.