Assuming that a trader is highly experienced and competent, he will only trade the Daily Forex market. He may only use automated assistance when he is resting, but for the most part his trade can be done well & quot; fly past the seat of his pants & quot;
All those independent traders will have different strategies. Some will trade using only graphs, others can simply trade based on the price and others will trade using the Daily News as the indicators that determine their game.
An extreme example of how Daily News can affect the Daily Forex market is what happened on 9/11. On that fateful morning, as most Americans watched as the horrors were received in bewildered silence and disbelief, the dollar began to fall in value. Currency traders in distant places noticed the fall and saw the news. While they too looked horrified, many of them automatically exchanged the dollar for other currencies and earned huge sums of money. They immediately bought the British Pound or the Japanese Yen. The dollar fell to a low point and within a few days when the dollar began to recover, those traders bought back much larger amounts of dollars than they had sold. In round figures, a trader who had sold half a million dollars in the beginning probably ended one million by the time he bought back dollars.
Similarly, bad economic news can affect a currency that forces it against the others, and during that time, fortunes can be earned (and lost).
This is also the scenario when there is bad political news or news about a disaster. Natural disasters such as earthquakes, tsunamis or serious flooding can also cause currencies to fluctuate.
Nowadays hardly a day goes by without news that the currency boats can rock.
For beginners in the Forex sector, it is not stupid enough to start daily forex trading based solely on the news stories. Here's my advice for what it's worth – buy an automated system like the one I use, learn the tricks of the support team, trade in paper or demo trading for a few weeks and finally start trading small. Do not use leverage until you are highly competent.