If you have been trading in the money market for a while, you know that there is money to be made of the new forex. However, the exchange of news about the Forex does certain risks and there are 5 main pitfalls to be avoided before they can negotiate new forex successfully.

We will discuss these 5 pitfalls and gives you some tips on currency and forex trading strategies to use to counter these pitfalls.

Trap # 1: A strong market reaction. Economic news releases and reports are indicators for forex future long-term travel for a currency pair. But for short-term operations, actual results and expectations may create opportunities provided big move. Thus, when actual results came out

the same as what the market expects, then there is high possibility that the market will not have a strong reaction. It splits the difference between actual output and market expectations that causes the market to have a breakout or great movement.

Trap # 2: generally short. Most of the time, opportunities for evasion of the new release does not have a long-term trend that the May movement lasts only a few minutes to several hours. But still, it must depend on the extent of the release of economic news and the difference between actual and planned expectations. Most traders use forex scalping or day trading or when they trade on new releases. A forex advice is to try not to operate during the liberation that trade can turn against you in a short time, even after taking a big initial hit.

Trap # 3: Market calm before a big movement. The market may often balance for a vast movement when she was very calm before certain economic announcements or news releases. This is because the market is waiting for those before deciding which direction it goes. Traders are awaiting a good opportunity to jump into the market after the news reports were released. Thus, you should not react to signals forex trading 2-3 hours before the news is released as of May signals are false and misleading.

Trap # 4: High Spread during News release. In news releases, broker trading in May to ensure that your job will be executed, but none of them guarantee a normal distribution for you. Forex brokers widen the gap due to lack of trading volume during the release. EUR / USD is one of the currency pairs with a tight spread, but I saw him he turns into 10 pips spread from a normally 2 points during a news outlet.

Trap # 5: High skid. You may experience slippage when there is a great movement in news releases. This means that your order will have completed the trade at a different price instead of the price you wanted. For example, you may have set a limit order at 1. 3000. But when the news release, the price shot up 50 pips to 1. 3050. Thus, a shift may occur and you will receive your completed order to perhaps 1. 3020 instead of 1. 3000.

This is very risky because the market may go against your trading plan. The above guide forex trading will be very useful if you use a strategy forex trading day for business news. But in any case, I will not recommend the new bargaining because it is very risky with the considerations above.