Markets change Traders, that’s a fact.
The way the markets traded 15 years ago is definitely different from the way it is currently trading. If you found a system that worked 15 years ago, I assure you that it wont work today, that simple.
The only way you can survive is by Adapting to the Market Conditions, there is just no other way.
And the same happens with fundamental releases…
I wonder if you are going to be trading for the rest of the week?
We’ve got plenty of important announcements… just to name a few:
Thursday:
GBP interest rate announcement
EUR interest rate announcement
CAD Ivey
Friday
CAD Employment change
USD Non-farm payrolls announcement
EUR Draghi Speaks
Source: www.forexfactory.com
So think again, are you going to trade the rest of the week?
I think I’ll patiently wait for Monday…
Now, here is my update about my trade in the EURGBP:
Hey, hope you had a great and peaceful weekend, because this week you are going to have to think clear about market movements.
This week it’s full of fundamental announcements, we could see some major movements, especially on the second half of the week.
These are a few of the most important fundamental announcements:
Tuesday:
AUD interest rate & statement
Wednesday:
CAD interest rate & statement
AUD employment rate
Thursday:
GBP interest rate & statement
EUR interest rate & statement
Friday:
USD Non-farm payrolls
CAD employment rate
We’ll have two important announcements this week:
On Friday Fed Chairman Bernanke speaks and on Saturday ECB president Draghi speaks. And believe me, these two announcements could have a great impact in the markets.
So I’ll close all my trades before Friday this week.
And there is also another factor, it’s the last week of August, as many of you already know, August is amongst the months with fewer trading volume.
Hope you had a great weekend!
Before I show you why you should focus on the AUDCHF, these are some of the fundamentals I’ll keep an eye on this week:
Tuesday:
CB Consumer confidence
Wednesday:
FOMC Statement
Thursday:
GBP Interest rate (plus rate statement)
EUR interest rate (plus ECB press conference)
Friday:
Non-farm payrolls report
News trading has become quite popular in Forex in the last few years.
Mostly because it offers an opportunity for traders to make a quick gain (based on the volatility generated by traders and investors trying to get a piece of the movement).
But the questions is, could it be possible to get positive and consistent results trading the news? I don’t think so, and here are the reasons.
There are two common strategies used to trade the news:
This technique consists on placing two entry orders before the fundamental release, an order to go long above current market activity and another one to go short below current market activity.
Ahhh remember those days when the EURUSD could move 200 pips in a few minutes after the Non-farm payrolls announcement?
I do… lots of traders used the straddle technique, placing stop entry orders on both sides:
One of the orders would trigger and done for the day!
We’ve got plenty of fundamental announcements coming up this week:
GBP Interest rate
EUR interest rate
USD unemployment report
CAD unemployment report
Just to name a few…
The European session is about to end and today there are no banks open in the US. So I think I’m done looking for trade opportunities for the week…
Still I need to take a few decisions on my opened trades.
I’m going to close all my trades but the GBPAUD one…
Do you hold your trades during important announcements?
Sometimes I do, but only when the market has moved on my favor enough to make me feel comfortable with my trade and move my SL to the BE level (at least).
But sometimes we need to be careful, especially with the GBP and CAD which are the currencies that react the most to its fundamental announcements.
Take a look at the GBPCAD:
What do you think?
Do you hold your trades during important announcements?
Have a great weekend! And I see you on Monday!
Raul Lopez
Forex Coaching
I didn’t, most of you already know I don’t like to trade news announcements. You never know what could happen, almost an infinite scenarios are possible:
We could get a good number and:
We could get a bad number and:
You never know…
So I’m just curious to see if there are still traders that trade news announcements.
Do you trade them?
Have a great weekend!
Raul Lopez
Forex Training