Avoid fundamental influences in your trading
By Roger Baettig | February 9, 2011 7:05 AM EST
Are you a beginner trader? Are your winning trades sometimes suddenly stopped out and you didn't know why? Perhaps it was because some economic indicators were published. Perhaps there was an ECB press conference.
So what does it mean? For example the U.S. Government publishes every month (in the first week) their unemployment rate. Traders worldwide are waiting very nervously on these numbers, because the published numbers can be away from the forecast, so there will be a surprise in the market. In that case the market will move a lot.
So, in the hours before the unemployment rate gets published many traders stay out of the market. Why is it like that? It is because they are technical traders. Even though their technical indicators tell them to enter the market, they stay out.
If you are a technical trader, you need to know when the economic indicators for the currencies you are trading will be published. Therefore I can highly recommend you take a look every day at Forex-Factory.
There you will get a calendar with the most important economic indicators. Make sure to stay out the markets, when they get published.
For a trader it is always important to reduce risks.
Enjoy your trading!
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