Beware the news when trading forex

How many times have you entered a trade when everything is lined up correctly according to your proven profitable system and things start moving nicely, then BANG a news annoucement comes out and sends price in the opposite direction in a big way – stopping you out?

It’s happened to me again and again, and even when I kept telling myself: “you must check for upcoming news annoucements before entering a trade” there were times when I’d forget and I’d get bitten.

It happened so many times that I thought to myself, there must be a way to automate this, so that I don’t have to remember upcoming news announcements.  So, I built that feature into the Trade on Track program – now I never have to worry about checking news calendars again, Trade on Track does it for me!

The way it works is, Trade on Track is continually updated with the most relevant news announcements automatically – you don’t have to do it.  Trade on Track also knows what currencies each news announcement affects, and the relative “strength” that each announcement has on the market.

Then, when you enter a trade – Trade on Track warns you if there is an upcoming news announcement that is likely to affect your trade in a significant way.

An example of this occured yesterday, where there was a near-perfect short entry on the USD/JPY.

USD/JPY Failed Short Trade

USD/JPY Failed Short Trade

The trade looked great, an entry around 109.00 should have seen a move down of at least 50 pips as there were no real support levels until around 108.30.  However, Trade on Track warned of some durable goods orders figures coming out at 8:30am US EDT which could have a significant impact on this trade. As it turned out, the durable goods figures turned out to be a lot better than the consensus – so price shot up going in the opposite direction of our would-be trade.

News announcements and other significant events can have a large impact on the financial markets.  Even if they are not sustained, they can still send price wildly in one or both directions – potentially wiping out your stop loss.  If you’re not taking news annoucements into account when trading the forex – then you could be in for many more losses than you deserve, so BEWARE!

Good luck and trade seriously!

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