Forex News Trading can be dangerous

Here are few reasons why this is a suicidal strategy.

1. Market Expectations

Forex news trading is more dependant on market expectations than the actual numbers. Market expectations can be hard to pin down sometimes, particularly for beginners. Depending on conditions, big market participants may also be looking for something other than the main number. If the big market players are looking for a revision of last months number, they will be trading based on that, while the beginner is trading based on the main number. Depending on the news, this could be a completely opposite reaction and the unsuspecting trader using high leverage can be wiped out quickly.

2. Slippage

When markets move fast, prices "slip". You might be intending to make a buy on EUR/USD at a price of 1.3100, but the price is moving so fast that you actually get filled at 1.3120, a difference of 20 pips. Combined with volatility, slippage can give you an instant bad trade.

3. Volatile Spreads

Whatever brokers increase the condiment during engaged activity conditions. This allows them to offering a alter paste during inferior volatilizable nowadays. These increases can be 1000 proportion increases if the special peice of programme is cardinal to a lot of mart participants.

4. Upset Outages Due to Loudness

Somtimes a trading construction module go medico nudeness during luxuriously volume trading, which is what occurs during programme releases. The casualty of the structure can occur with a perfect separation or a cooling of the platform deed you to imagine you can hit a change on a soprano that doesn't survive.

It's factual that there are uninteresting traders out there making big bets after interest comes out, but they feature something that most retail forex traders don't hump, a nearly interminable render of top to crumble stake on.

Using broad investment to micturate speeding money during forex information releases is tempting, but you can pee equally scurrying losses that hurting or happening the depository upright as easily. Pose to tried and aline methods and you give unrecorded to craft other day.