Thursday, March 28, 2013

Since there is frequent news from the U.S. and UK, is it better to trade fundamentals rather than only candlesticks?

Traders all have different styles. Some like to trade news and others don’t; it all depends on trading style. If you’re a scalper, trading lower time frames multiple times a day, you would avoid trading during major news announcements. This is because major news may create unwanted volatility in the market and affect strategy.

On the other hand, if you trade longer terms (like a few days, weeks or months), you wouldn’t look at daily news since its effects are mostly short-term.

If you’re a day trader, you would account for daily news. A day trader normally enters and exits trades within a day. This is why certain news announcements are important since they may affect your trading decisions on a particular day.

Therefore, there is no “best” way to trade. Trading with news or candlesticks does not matter as long as you know your personal trading style. 

1 comment:

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