. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The rise of the internet has seen more FOREX news and education available to traders than ever before and it’s instantly available, but it won’t help you make any money.

In fact, if you try to trade using news, you will lose and one simple fact will explain why:

Done:

Consider this:

50 years ago around 90% of traders lost all their money and this figure remains the same today, 90%.

This is despite the wide variety of new tools and the latest online news that are available to help traders – the ratio remains the same.

The reason for this is an important part of your FOREX education:

The markets move to the following equation

Market Fundamentals + Investor Perception = Price Movement.

We all watch the news, but what matters is how all investors interpret it.

The market is a discount mechanism and all news is instantly reflected in the fundamentals.

If you see experts speaking on TV or writing stories, then this information is discounted: the arguments may sound convincing, but that’s what the media sells stories for.

The experts who post stories are not traders and most of the time they are dead wrong.

If it was easy to trade news, a lot more traders would make money and the fact is they don’t.

By listening to the news and acting on it, you will lose.

Let’s go back to the equation:

Market Fundamentals + Investor Perception = Price Movement

Since the market instantly discounts the news, we can simply assume all the fundamentals and the news is instantly reflected in the price action.

All you need to do is follow the price action and focus on investor sentiment on the fundamentals.

This makes a technical approach while ignoring the news the best way to trade the markets.

As investor psychology is constant, repeating chart patterns can be spotted and acted upon.

If you try to use the news, you will simply lose.

Consider the fact that markets crash when fundamentals are most bullish and recover when fundamentals are most bearish and you’ll see that trying to act on the news is a waste of time.

How many times do you see a market ignore the news and go the other way?

Happens all the time.

Will Rogers famously said:

“I only believe what I read in the newspapers”

I was kidding but a lot of FOREX traders really believe what they read and think they can trade it and lose.

The market is a discount mechanism and trying to change the news will most likely fail.

So if you want to make money trading FOREX, keep in mind this important part of FOREX education

Understand the past, think about the present and look to the future.

You can do this simply by following technical analysis and seeing future trend changes that news listeners will never see.

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