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Don’t chase price on days like today.

There is a common error made by newbie Traders on days like today. They either try and chase price, after price has moved or they try and guess the high or low after the news and catch the reversal they think is going to happen. This is such a Low Probability Approach and is akin to trying to catch a falling knife.

Trying to trade a news driven event such as the overnight US Fed decision may seem enticing but it’s these types of events that often see traders wipe out their accounts. Unless you work at an investment bank and can specifically hear the sales calls and money flow (which is illegal to trade if you are at the bank) it’s just a low probability approach in my opinion to chase price.

What you are better off learning is how to trade the price action in the coming days and how the market reacts off support and resistance levels. The long-term fundamental trends have not changed because the US Fed put up rates in March. Look for an opportunity to buy back into the overwhelming trend, use the wave formations to guide you and don’t try and be the first to buy the low or sell the high after the news.

Think of it this way. You’ve been invited to a great party, when is the best time to arrive and leave? I suspect this overnight fall on the US Dollar will be met with some support in coming days.

One trade at a time. Go get ’em!

About the Author: Andrew Barnett

Andrew is a professional trader and successful investor who has a strong focus on education. He is a regular Sky News Money Channel Guest and one of Australia’s most awarded and respected financial experts, and is regularly contacted by the Australian Media for the latest on what is happening with the Australian Dollar. Director at LTG GoldRock, Andrew Barnett, guides thousands of traders around the world in the live market on a daily basis, advising them on buy and sell directions, as well as trading his own personal account. Andrew, a regular key-note speaker at trading and wealth-creation events throughout the Asia Pacific region, is an authorized representative registered with the Australian Securities and Investment Commission (ASIC).

If you would like to speak to one of our Senior Client Advisors regarding the relative client opportunities offered at LTG GoldRock and how you can follow along with our Professional traders each day in our live trading room please contact us today or you can register for one of our a live coaching and trading webinars by clicking here.

The post Don’t chase price on days like today. appeared first on Ltg Goldrock.

This post first appeared on LTG GoldRock Australia - Forex Trading Training Ed, please read the originial post: here

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Don’t chase price on days like today.


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