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Wednesday, April 4, 2012

Disadvantages of Forex Trading News

 Even if the news Forex trading strategy can be very profitable, you must be aware of the disadvantages of trading the currency market news, if you want to use a strategy of war
First of all, the news business is all about before or immediately after the release of important information, such as U.S. non-farm payrolls (AKA-employment). News groped Forex traders to take advantage of high volatility is caused in the money market, following the release of important news. However, this has two





 disadvantages of trading the forex market news
1) cost your business can grow and you may think, instead of damages, even if you make some good investment decisions. This is because you can spread the changes in different market conditions. This course can be avoided by opening an account with a broker of exchange can offer fixed spreads. Most brokers offer fixed spreads good time and if you are currently with a broker can not, you should consider opening an account with a broker can. Not only will you be able to exchange the news is more effective, but you will not have to take into account when changes are made to spread the forex trading plan. More widespread changes in foreign currency transactions generally causes the loss of opportunity and are not desired
2) You can get broker "locked" in foreign currency, is basically when you get a time delay between when you place an order and when the order is actually. This can result in foreign exchange transactions of losing the possibility of damage and failure, instead of making a profit. To try to avoid slipping, you must make sure that your broker is good and can fill orders quickly, regardless of the money market conditions
Remember, there are many business benefits of the news and you should avoid Forex trading strategies of news simply because they suffer from several disadvantages. There are real advantages and disadvantages to all types of foreign exchange trading strategies, but it's just good to be aware of the advantages and disadvantages of a currency trading strategy given before deciding to use it. It should weigh in your mind the advantages and limitations of business strategy and then decide which is best for you, business strategy, you use will depend on you as an individual exchange activities with foreign countries and your situation. For example, if you are a beginner and do not have much time for currency trading, you might consider using a Forex trading strategy leads (in relation to the misuse of the difference in interest rates between different currencies, allowing traders and investors to make profits in the long term), which is long and requires less business experience than before
In conclusion, the disadvantages of Forex trading news and business including increased costs and delays on the bridge. However, currency traders in all honesty can earn more business information and you should not give the type of forex trading strategy, simply because they carry some disadvantages. As mentioned previously, each of which forex trading strategies have disadvantages and, finally, will depend on you as an individual company and your situation changes, strategic business that you decide to use application. Just as with any other business strategy, although when it comes to major economic news and data, make sure you are aware of the disadvantages and limitations of current strategies, as this will allow you to try to avoid unnecessary losses

1 comment:

  1. Apart from all these things business hours are also the main disadvantage because no one can monitor market conditions all the time, means 24/7 hours. For that purpose we have to hire broker.


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