Online FOREX Trading - to be a success not pay attention to the news!

Online FOREX Trading - to be a success not pay attention to the news!

Can studying the news help you make profits in online forex trading? Responsible for most traders is no.

In fact, paying attention to news of online FOREX trading you will lose money. Why? Read on and let us know.

How and why FOREX prices move

In online FOREX Trading (and any financial market, for that matter) prices move based on the following equation

Supply and demand fundamentals + Trader psychology = Market price

What is most important? The market today is definitely the latter - Why?

Quite simply, FOREX markets discount fundamentals quickly and with the internet its done in seconds.

In all parts of the world of the Internet provides information quickly and it immediately reduced the FOREX market price.

This means that traders do opinions about what will happen in the future, and it is their psychology that is the key to future FOREX price direction.

Certainly, newspapers and the news is great telling you why things happen and usually their line of what will happen.

Traders are fooled by the FOREX experts in online FOREX trading and fail to see their wrong most of the time.

Will Rogers said:

"I only believe what they read in newspapers"

Now he was joking, but most traders to news services like the Gospel.

Reuters and Bloomberg stories agree with them, so they must be right, is the opinion of most online Forex traders. I do not think so, actually, we know that, based on facts, etc. experts from past performance.

It is easy to be wise in hindsight, but looking into the future is very hard!

They write stories for a living they do not FOREX trade, traders who are interested in making profits should not be following news stories or media hype.

It's a fact: The most important market tops and bottoms and formed when the news is most bullish and horny. When the FOREX trends change of course, news wires have an explanation, but that will not help you trade!

In 1987 the accident were hard-to date stock boom they were hard-and these are just tow examples of media experts are fine and there are many others.

Understand the past and look to the FOREX future

This is the key to successful online FOREX trading. Quite simply the basics boil in seconds, and reflected in the price.

Her trader psychology is important how they look in the future and how they determine the supply and demand situation reflects the price changes.

Human psychology has remained constant over time and that is why many price patterns are so compelling and point to important FOREX market tops and bottoms when the market is either very bullish or rough.

Of course, prices then go the other way! so-called confounding Media experts.

Technical analysis of markets

The only way you can win in online FOREX trading is to use technical analysis system that focuses on price.

Why use a technical system in online FOREX trading?

There are two main reasons

1st You will not be distracted by media stories and news hype and will keep your emotions under control.

2nd If you are involved in online FOREX Trading you can look at charts and see long term trends that last for months or years and many of them (actually most of them!) Run against, as they say, newspapers, etc. experts!

To be a success in online FOREX trading you need to do is to focus on these trends and forget the news media, media experts are not paid for the trade, they get paid to write stories.

Focus on the reality of the price, not the media hype and can make big profits in online forex trading.