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Old 01-27-2007, 02:44 PM
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Re: Trading Forex early in the AM

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This is true and also frequently makes the US session much less tradable than the European session.
While it is true that most people should not try and trade the news and most market moving news occurs during the US session, it is not true that it is less tradable. The news does not happen every day. And on the days that it does, one only has to "step back" as the new is released.

Moreover, news related events are used by Professional money to take advantage of the herd. If you track Professional money then news events become opportunities where you can see Smart Money footprints and trade along side of them. Usually the herd will rush in on bad news and sell, while the Smart Money is buying, and then price actually turns and heads up.
You can see the Smart Money setting up for the move prior to the news (hours and sometimes days ahead). Once you learn to track them, the news takes on a whole different light.

You don't care what the actual news is. You don't really care how it is interpreted. But the way it is interpreted is usually opposite of the way price ends up going.

" A professional trader isolates himself from the 'herd' and becomes a predator rather than a victim. He understands and recognizes the principles that drive the markets and refuses to be misled by good or bad news, tips, advice, brokers, or well-meaning friends. When the market is being shaken-out on bad news, he is in there buying. When the 'herd' is buying and the news is good, he is looking to sell".--Tom Williams, Master the Markets P.23

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