Daily Forex and Daily News

Assuming that the trader is very experienced and competent, he will trade on the daily Forex market himself. He can only use automated assistance while resting, but for the most part his trade can be done "flying to the seat of the pants".

All these independent traders will have different strategies. Some will trade with charts only, others can simply trade on price, while others will trade with Daily News as indicators that dictate their game.

An extreme example of how the Daily News can affect the Daily Forex market happened on 9/11. On that fateful morning, as most Americans watched the horrors unfold in stunned silence and distrust, the dollar began to fall in value. Foreign currency traders spotted the fall and saw the news. As they also watched in horror, many of them automatically traded dollars against other currencies and made huge sums of money. They immediately bought the British pound or Japanese yen. The dollar dropped to an all-time high, and within days the dollar began to recover those traders who bought back much larger amounts than they had sold. In round numbers, a trader who initially sold half a million dollars probably ended up with a million by the time he bought dollars back.

Similarly, any bad economic news can affect the currency that compels it to the rest, and in the meantime, wealth can be made (and lost).

This is also the scenario when there is bad political or disaster news. Natural disasters, such as earthquakes, tsunamis, or severe flooding, can cause currency fluctuations.

In fact, nowadays it is barely a day without new news that can shake currency boats.

For starters in the Forex business, don't be foolish enough to start daily currency trading based solely on News Stories. Here's my tip for you – buy an automated system like the one I use, learn the ropes from your support team, do paper trading or demo trading for a few weeks, and finally start trading small. Do not use leverage until you are very competent.