My"Blog

 H  1 Chapter 4.3 News Analysis 0 NEWS ANALYSIS Contents Fundamentals move currency pairs, and news moves fundamentals. News of an interest-rate hike or news of a sub-prime meltdown can cause a currency pair to change directions in an instant. The fundamentals that were true just 10 seconds earlier can become completely meaningless in the face of new fundamental information. You, as a forex trader, need to be able to react to big news when it is released. You may be worried that you won’t be able to be in front of your computer to react to all of the market news that may come out during a day. After all, the forex market is a 24-hour marketplace. Luckily, as a retail forex trader, you don’t need to monitor the news wires quite this actively. If you use appropriate risk-management techniques, you have the ability to react more nimbly than large, institutional investors while protecting yourself from extreme downside risk. In this section, you will learn about the following cha...