Daily Forex and Daily News

Assuming that the trader is highly experienced and efficient, he will trade the Daily Forex market on his own. He may use automatic assistance only when resting, but his trade may often be conducted "by flying on the seat of his pants."

All these independent traders will have different strategies. Some will trade using charts only, others may trade at the price, while others trade the Daily News as indicators that dictate to them.

A striking example of how Daily News affects the Daily Forex market is what happened on September 11th. That fateful morning, as most Americans watched the horrors unfold with spectacular silence and blasphemy, the dollar began to fall. Forex traders in distant locations noticed the decline and watched the news. Since they also watched in horror, many of them automatically traded in dollars against other currencies and received huge sums of money. They bought the British pound or the Japanese yen immediately. The dollar fell to an all-time low and within days as the dollar began to take back these traders they repurchased much more dollars than they sold. In a circular fashion, a trader who initially sold half a million dollars might have finished a million by the time he bought the dollar.

Likewise, any bad economic news can affect the currency that forces it to fall against other currencies and during that period can earn (and lose) fortunes.

This is also the case when there is bad political news or disaster news. Natural disasters, such as earthquakes, tsunamis, or severe floods, can also cause currency volatility.

In fact these days rarely pass a day without some news that can shake currency boats.

For beginners in forex trading, they are not reckless enough to start trading Forex daily based on news stories only. Here's my advice to you about its value – buy an automated system like the one I'm using, learn the ropes from your support team, trade paper or demo trading for a few weeks, and finally start trading small. Do not use leverage until you are highly qualified.

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