Do I Need to Watch the News to Trade Forex? 

 

If you have been considering trading forex then you could hardly be blamed for feeling a little daunted by the sheer amount of information surrounding the topic.

Between the trading guides, technical analysis tools, trading algorithms, and YouTube gurus, how are you supposed to filter the wheat from the chaff?

Now, if you’re expected to follow global news on top of everything else… well, you will hardly have any time left for actual trading!

So in light of all of this you might be wondering if you really need to watch the news to trade forex.

Should I Trade the News?

“Trading the news” refers to a fairly reactive form of trading that is usually done off of the back of press releases.

Traders who trade in this manner are often able to take advantage of breakouts that occur when various economic data released.

While this may be a relatively effective method of trading, you should not be led to believe that it is somehow a prerequisite of long-term trading success.

Choose Your Own Path

There are all manner of approaches that can be taken when it comes to trading, and trading the news might be one of these.

In fact, trading the news may be an incredibly demanding and time-consuming method of trading because it requires you to keep a close eye on news releases from all around the world.

Before deciding whether or not you need to watch the news to trade forex, you may consider all of the tools and information you have at your disposal because this will enable you to choose a trading style that best suits your temperament and circumstances.

Watching the News is a Good Idea

We would argue that although watching the news is not an absolute requirement for trading success, it is certainly a good idea to keep your eyes open for releases which may affect whichever currency pairs you are trading at a given time.

Not only will this provide you with more information to accurately assess your open positions; it might also help you to continually develop your understanding of how various currencies and commodities respond to different economic data from around the world.

Becoming a true trading expert is a slow and lengthy process; however, the information is certainly available for those who want it.

The bottom line is this: You do not need to watch the news to trade forex, but it definitely helps!

 

Find more: Contributing Authors 

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