NO ONE CAN PREDICT THE MARKET.
You can bang it over and over again, people will always be looking for a way to do so!
We don’t like “not to know”.
This is probably why “horoscope” related searches are the second most popular ones on the Internet, just after you know what…
This is also why future prediction businesses are still thriving offline and online.
As human, we want to know what’s next because not knowing makes us feel insecure.
So, logically, in trading, news get a lot of wannabe traders excited.
After all, you just got to receive the news as soon as possible, take position and let the money flow in. Because the move is based on news, the trader thinks he knows for sure how the market will behave.
Problem: everyone get access to the news.
Result: The market usually gets crazy, moving up and down very quickly, simply because everyone is trying to take advantage of the news…
Remember that over 90% of traders are speculators!
Before going further, let me state I believe it is possible to have a successful system specifically designed around news trading. As I believe most concepts can be profitably exploited in Forex trading.
However, this is not for us.
At SurfingThePips.com, when an important news is released and most jump in, we jump off:
We get out of the market & enjoy our break. News are a bit like an extra break for us.
We only come back when the market is calmer.
Because trading news doesn’t fit our trading philosophy.
People who trade news need to act fast & in very small timeframes. That’s way too stressful for us.
We only want to make money in a calm, relaxed manner.
Are we missing potential gains doing this?
But we’re also missing potential losses, right?
In fact, being successful trading Forex is probably more about what you don’t trade than what you DO trade.
And part of a highly efficient system is the careful selection of your trades.
Trades that fit your overall strategy AND your trading philosophy!
That’s why we don’t trade news…