Question by Zach!: Forex News Trading – Are you an Active News Trader who Tracks the Fundamental Release?
Do you recommend this strategy in the Asia-Pacific forex markets — Singapore, HK, Japan, Australia & NZ?
Best answer:
Answer by AJ
No, I don’t trade news stories, nor do I trade with a leverage of more than 1:50
The reason is simple: Broker spreads increase dramatically when a news report comes out. So the chances of manipulation & ‘price spikes’ are much higher.
Besides, the market itself goes into a volatile whipsaw at news time. Your stops can be taken out, trends takes a U-turn, and more often than not, you’ll end up with unwanted losses.
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Add your own answer in the comments!
No , News is to provide the big trend move support. Not to do intraday trading in Asia Pacifiic hours. Everyone in the market should know that Asia Pacific trading hours like dead market. only range trading.
Active hour is during London trading hours.
Currently, US trading hours also quite active after the subprime issue.
Economic data release from US and europe is much watched.
Central bank announcement like Federal Reserve, ECB, BOE, on interest rate movement is a MUST watch news. This is to get the market sentiment, definitely a NO. No to trade intra day.
Intraday trading require technical analysis. Charting. to check resistance and support level.