I don’t trade the news as it is generally too risky, HOWEVER, it is important to check before you enter a trade that no important news is due.
For example, you have looked at your charts and seen that the gbp looks like it is going to go up. You have run through your check list, checked indicators on different time frames and decided where to place your stop loss. Before you enter the trade check the news (this is the 1st thing I do every morning).
If there is some important news due in the next hour or so, be VERY careful. I would never enter a trade within an hour of say interest rate news or something similar. Price could race in the opposite direction to your trade in a heart beat if something unexpected is announced. Price is usually based on what the “experts” think the news is going to be. Guess what, they are often wrong !
There is the further silliness with forex that sometimes news comes out that should be good for a currency and the price falls !
Having checked todays news for potential upsets, we next take a look at the charts for areas of support & resistance where price is likely to react.
