Fundamental forex trading advice
Sometimes we make our own luck. That can be a bad thing as well as a good thing. It is imperative that we learn from our mistakes or else, to paraphrase, we are bound to repeat them. The lightning rods to which I am referring are data releases.
Holding a big position into a news event can be a thrill. Many live for the moments of madness around the release of NFP, or the minutes of madness during an ECB press conference. In my experience, it is better to hold your fire and trade the news as it happens, rather than place your bet before the release.
Increasingly, for the paranoid among us, economic data releases appear to be front run, sometimes only seconds before the data release is due. Whether that is due to leaking of the data or just some lucky algos placing a pre-event bet is not for me to say. It does appear though that you are at a disadvantage if your dice have already been cast.
Sometimes markets can get illiquid and spreads can widen. Oddly it’s just at 8.30 on the first Friday of the month that the internet freezes. My point is that in order to reduce the bruising that markets can inflict, we are often better off making the boring trades, hitting a few singles, and resisting the urge to always swing for the fences. It makes for less exciting times but an easier life.
