In this lesson, I will talk about the different ways how you can trade forex during key economic news events.
Most common used news strategies:

• Trading the Numbers
• Straddle the News
• Hedging the News

Forex options and futures markets paint a decidedly mixed picture for the US Dollar, as traders are increasingly unsure of short-term direction. We had been calling for a major US Dollar turnaround for quite some time now, and the EUR/USD’s sharp initial reversal from $1.50 gave us reason to believe that the Greenback could continue higher.

Market knowledge and ability to understand analysis will only get you so far in forex trading, but without the nerve to actively compete risking your own money in the process you can never become a successful trader.

How Did the Japanese Yen Trade in 2008?

The global economic turmoil and the subsequent unwinding of carry trades made the Japanese Yen, the best performing currency of 2008.  The Yen rose more than 35 percent against the British pound, Australian and New Zealand dollars and hit a 13-year high against the US dollar.  Unlike some of the other currencies, which may have seen wild swings throughout 2008, the Yen consistently strength throughout the year.  Unfortunately the remarkable rally in the Yen will also be a big reason why Japan could underperform, its peers next year.

Money management is a critical point that shows difference between winners and losers. It was proved that if 100 traders start trading using a system with 60% winning odds, only 5 traders will be in profit at the end of the year. In spite of the 60% winning odds 95% of traders will lose because of their poor money management. Money management is the most significant part of any trading system. Most of traders don't understand how important it is.

EUR/USD - Euro Dollar

1,3990. EUR USD is in an uptrend supported by 4H exponential moving averages. EUR USD is in a consolidation after the last bullish movement. The volatility is high. Bollinger bands are parallel and form the trend. ForexTrend 4H, daily (Mataf Trend Indicator) is in a bullish configuration. The uptrend should continue to gather momentum.

The key to making money in the currency exchange market is to avoid emotional decisions and to follow a carefully thought out strategy that takes the current market and history into account. Going with your gut is not the way to go in the Forex market. Going with your gut could cost you money.

Like any other business in the history of business, your broker’s raison d’etre, is to make as big a profit as possible. There are about as many ways to go about this as there are brokers. For those who are in it for the long haul, however, it is generally best to adopt a set of practices which are deemed fair by their clients: certain boundaries are set, and operating beyond them can cost a brokerage its reputation, and along with it its clients.