Trading Before an Economic Announcement is Made

[bella2175]

Hi all,

On the subject of trading fundamentals before an economic announcement is made ... how does one decide to take a trade before an economic announcement is made and what side the trade should be on (long or short)? What are you reading that is telling you to swing trade long or short days before an economic announcement is made? What fundamentals edge, not technicals, are you using to plan your trade that far in advance?

Thank you!

 

[Enivid]

Most times, it is not possible to make money trading Forex that way. I mean trying to go long or short before the news announcement. However, sometimes, you might be able to make a prediction that would be significantly different from what the majority of the market participants are expecting, and trade based on this prediction. The problem is that it is very difficult for a retail trader to find the necessary information, which would put him in a better position compared wit the majority of other participants. In Forex, such information can still be gained from interviews (people are interpreting them in lots of different ways), connected markets (options, futures, commodities), and sentiment indicators.