Hi, just a quick video showing why we do NOT trade the news and a look at the Gbp interest rate statement & assorted news from Thursday.
I warned on Sunday and once again in Tuesday’s live session why it was not a good idea to trade the Gbp on Thursday morning (London time).
In the short video you will see why this was very good advice!
Prior to the news the Gbp/$ was dropping, probably in anticipation that it was going to be worse than expected, some traders gambling and market makers happy to support the idea.
Then the news came out as expected so the price shot up 50 pips, so we jump into a long?
The MPC Asset Purchase facility (print more money to buy your own debt)! release was delayed. When it came out a little later there was a dissenting vote amongst the committee members and the Gbp promptly dropped 100 pips overall.
Trying to second guess news is a mugs game. Yes you will win some of the time, but its gambling and not trading. There is the additional risk that if there is an extraordinary announcement, that your stop could be jumped and you lose more than you had planned.
The best advice is to follow my lead and DON’T DO IT!
To keep up to date with the news check out Forex Factory the news feed and calendar.
Here is how I sometimes take a trade AFTER the news has come out and things have calmed down: CLICK HERE
Do Not Trade The News