What this blog is NOT about:
There are those blogs whose authors give reports:
On FOREX news and analysis;
On experience and opinions;
On forecasts and predictions;
On strategies and signals;
On Technical and Fundamental trading ideas.
What this blog IS about:
I became interested about 3 plus years ago in the currency trading
market while browsing some forums on high yield internet opportunities. Someone was commenting about currency trading and believed that the “babypips.com” website was a good place to get started learning the basics.
And that is where I went! Now, this is not a promotion for the that website. I have no connection with “babypips.com” other than I sometimes visit the forum.
And, like most everyone else, I bought books, and read other website info on FOREX, even joined one of the major brokers out of New York and opened a practice account for several months, then funded a live account with the same broker.
It was a rude awakening when I discovered that all I had really benefited from the practice account was how to use the brokers trading station. Not that I did not gain any real benefit, I did – but, trading a “live” account is much different from a practice account, the trade system I had developed in the practice account just did not function the same in “live” trading.
One thing which became apparent during my practice account – economic news announcements have an affect on the market.
It is well published by many experienced traders that it is a good idea to be out of a trade before, during and immediately after a economic report.
But, my guess is that there are some seasoned traders that see an opportunity for some nice “scalps” as well as long term PIPS.
My main interest over the last year or 2 has been the research of “probability” of traders reaction to economic releases, especially the market moving indicators for the USD, EUR, GBP, AUD and NZD.
Certain economic news releases have an affect on traders and what they do before, at and after the release.
For the most part, conservative traders move out of their trades prior to a important economic news release. This movement of traders out of their trades can be an opportunity to “scalp” a few PIPS, since traders often start exiting their trades 19 to 15 minutes prior to the release.
Depending upon what the news release is and how strong an affect on the economy of a nations economy it has, a pattern can be tracked and exploited as a “probability” for a future profitable trade prior to a economic news release.
What happens prior to a economic news release, and its “probability” move will be one of the subjects of this blog.
Traders in the know use economic news reports in their short and long term trades after the release, and again a pattern can be tracked and exploited for a profitable trade due to the “probability” of the same pattern, or near same pattern the next time that report is released.
This will be a subject of this blog as well.
I have been making screen captures of charts during economic news release since March of 2008 – I will be sharing these pictures on this blog.
Also, in September 2008, I started video captures of trade set-ups of “live” charts during select economic news releases – I will be sharing these videos on this blog.
I will also be writing articles on certain areas of foreign currency trading that pertain to “scalping the economic news“, such as broker “spread”, trade “slippage”, “scalping”, “market moving indicators”, definitions and sources of economic news reports.