14: Not Aware of Forex News Events
Even if you are hard core 110% technical trader, you need to be aware of what’s going on in the fundamental realm.
I’m saying this because I’ve had one nasty trading incident that nearly wiped out my entire forex trading account within a few minutes. I was new to forex trading back then.
There was a major forex news release and I was in a buy trade. The news release had a major negative impact on the currency pair.
I had my stop loss in place but when the news came out, price jumped my stop loss. Instead of suffering a $200 loss if my stop loss order was activated, I suffered an almost $3,000 loss in just a few minutes.That was half of my forex trading account gone!
I nearly went mental! What the shit happened?
I just couldn’t figure it out. I googled and then stumbled upon the news that caused that big price move that nearly wiped my entire trading account out.
- From that moment on, any time there is a trade setup forming, I make sure that no major news announcement are happening within a few minutes or hours before I take a trade and I do that by using the forex factory calendar.