Trading has always been an unpredictable market, with all the news and current events taking place, how does a trader manage to make it work? Does he just sit back look at all the charts and plan his moves out or does he simply bet on what’s to happen next?
Price Action
This is where price action comes into play; price action is a reflection of what will happen in the future before it even happens- sort of like a prediction. It sets the trend towards where the market is going and shows you a direction, so while the news comes out on what the people were expecting the price to be, the move based on it has already been made by traders.
The point is that there is no use in waiting for a new event to change the trading because the change is already taking place even before the news comes out through the price action.
Then how Does Following the News Kill Your Trading Account?
You’re probably wondering since the news doesn’t seem to make much of a difference to the traders, how can it make a difference to their trading accounts?
Well, looking at news can make you change your mind even if the price action and technical picture hasn’t changed at all; you are forced into thinking that the market will turn against you just because you read conflicting news.
- See more at: https://goo.gl/4VsM1y
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