Why I Ignore the News
#520: Why I Ignore the News
In this video:
00:25– Why I don’t trade the news
01:20 – Problems with Fundamental trading
02:30 – Different conclusions from the same news
03:30 – Trading what you see as a Technical trader
05:00 – Book a call with me and my team – https://theforextradingcoach.com/call
05:21 – Blueberry Markets
As a full time forex trader, I completely ignore the news. Let me explain why and how we trade. Let’s get into that and more. Right now.
Hey there forex traders. It’s Andrew Mitchem here, the owner of the Forex Trading Coach with video and podcast number 520.
Why I don’t trade the news
And that’s right. I completely ignore the news. I don’t look at the news. I don’t consider the news and it just does not affect my trading. Now, in the Forex world, there are generally two types of traders. We have fundamental traders who do look at news announcements.
Aand we have technical traders. And I’m definitely a technical trader because I look at charts, I do not clutter my charts with lots and lots of indicators because that just becomes a mess and I’m tradable. I look price action, I look at the close of a candle and I look at what is actually happening in the market and make a decision. Do I have protection for my stop loss?
Do I have room to move to my profit target? I know that my patterns work across all timeframes, all markets, and depending on the conditions at the time, if I see the pattern, I take the pattern because it has such a high probability chance of success.
Problems with Fundamental trading
Now fundamental traders look at the news. And while I personally still do look at Forex Factory once a day on the calendar just to see what’s happening purely out of interest, I don’t care about the news.
It doesn’t influence my trading. I don’t take positions out. Just prior to news or anything like that because as a technical trader I don’t need to. I trade what I see. The issue I’ve always had, or there’s quite a few issues. I’ve always had a fundamental trading.
From a practical point of view, depending on where you live in the world, some of the major market news announcements might be like 2:00 or 4:00 in the morning, not very practical for me living in New Zealand, if I’m looking at the European news or especially the US News, that’s like, you know, sort of 11:00, 12:00, 2:00 in the morning type of things.
Likewise, if you’re in Europe or the US and you’re looking at Australian news, let’s say, oh, Japanese news, it’s not at a very convenient time. And the other thing is from a practical point of view, is you’ll find quite often brokers will increase spreads massively, Sometimes if price freezes around news announcements. So it’s not quite all. It’s like sort of talked up to be when you trade news.
Different conclusions from the same news
The other thing is also is if you look at a news announcement and I look at a news announcement, we could see the same news announcement and draw completely different conclusions because you might say, oh, it’s way better than expected figure. Therefore we should be buying that that currency. I might say yes, better than expected. But last month they’ve dropped it all.
There’s been some commentary after that to say this is going to be, let’s say, the last interest rate hike or something like that, which means yes, okay. But long term, it’s not so good. So different people will see news announcements in different ways. So you got to be real careful there. And in all honesty, most big news announcements generally go in the way of the longer timeframe charts as a technical trader anyway, I can pretty much see most of the time which way news announcements are going to go by looking at, say, like the daily charts on the day of that announcement and making a very highly informed high probability decisions from there.
Trading what you see as a Technical trader
So getting back to technical trading when there’s not much happening on the charts, you can’t take anything. The last few weeks, for instance, like into sort of early mid September 2023, there’s not been a lot of great set ups on the forex pairs on the daily charts. So what have we done? Well, we’ve looked at other markets. I’ve taken trades on coffee, three trades on silver this week against the euro, against the US, against the Australian.
I’ve taken trades on zinc, copper, wheat all in the last couple of weeks, a bitcoin trade. So, you know, we’re looking at other markets out there when the forest markets have not been too good and that this week we’ve seen lots of good daily chart trade setups on the forex market. In fact, just today I’ve taken four trades on the daily charts.
Yesterday on my forum site there were seven shorter timeframe trades posted. The day before there were nine. So, you know, you have to trade what you see at the time that showing you the best technical set up. And that’s what I love about technical trading. It doesn’t take any longer. And to scanning through the charts couple of times a day, 30 minutes max, I can trade twice a day, take all the trades I need to have high reward to risk, not worry about news announcements, not worried about straddle trading or, you know, is that news going to be really good for the US or really bad for the US? I don’t need to be getting up at 2:00 in the morning to trade US announcements, things like that. So as a technical trader, I strongly recommend you have a look at that.
Book a call with me and my team – https://theforextradingcoach.com/call
If you’d like to find out more about how we trade, we like to have a chat with us. I’m going to put a link here that you can have a chat book, a chat for a 30 minute free call with either myself or one of my team up a link to that right here, if you’ve not been on my masterclass is about a 45 minute on demand masterclass. You can click on and have a look at that shows you what we do and how we trade.
And lastly, don’t forget, if you’re out there looking for a new broker, I can highly recommend blueberry markets. They offer the MT4 and also, of course, the MT5 trading platform. I’ve been with Blueberry since they started. Fantastic bunch of people.
Their MT5 platform, of course, has more timeframe charts and it also offers a lot of those markets that I mentioned, such as like the different silvers, you know, the wheats, the coppers, the zinc, all those different markets as well, the commodities, the bitcoins. So if you’re out there looking for a good broker, I can highly recommend blueberry markets.
So in summary, consider being a technical trader, not a fundamental trader. If you’ve not had a chat with us and you’d like to do so, book a call with us. If you’ve not been on my free masterclass, allow about 45 minutes. Click on the link here to do so. And if you are looking for a new broker, have a look at blueberry markets. The links also here.
So once again, this is Andrew Mitchem here at the Forex Trading Coach. Any questions, any topics you’d like me to discuss on future videos and podcasts? Just let me know. [email protected] Bye for now. See you next week.