Does Forex News Trading really work? - Forex Trading Strategy Q&A

Need help becoming profitable? Watch this interview, where Jarratt reveals THE EDGE, which got him #2 ranking: http://www.jarrattdavis.com/forex-course Does Forex News Trading really work? Many people think fundamental analysis doesn’t work, and the main reason for this is because they simply don’t understand it correctly. Over the last 2 weeks we’ve had a couple of news announcements that have confused people into thinking that news trading is pretty random, and almost impossible to make consistent profits from. I will look at this event in more detail and explain why things moved the way they did. The particular event was Australian private capital expenditure, and this figure came out at -4.2% which was much worse than the expected 1.6%. Many retail traders who look at that particular figure would think that the AUD would fall off much worse than expected data. However surprisingly, the AUDUSD rallied almost 100 pips, which continued into the following day where it broke 0.9300. Many people would see this and instantly think that news trading doesn’t work, and it’s completely random. Basically, this is not the case, and anyone who thinks that simply doesn’t understand how news trading works. Which is the reason I’m trying to explain it, and give you a better understanding of why things move the way they do. You’ve got to look behind the headline figure, and in this case with the Australian private capital expenditure, overall companies were investing less which is of course negative, however there was two things you need to bear in mind from this figure. Firstly, the projections for the coming year were much revised up, which provides a very positive outlook. Secondly, it was shown that companies and businesses away from the mining sector (which is one of Australia’s biggest industries) were expanding at a faster pace, and the reason that’s important is because the RBA is focused on getting Australia away from relying heavily on mining and exporting commodities, particularly to China. So in summary, they are trying to move away from depending on mining so heavily, and from that figure, it showed that the transition from mining to non-mining is going very smoothly, which overall is bullish for the AUD.

Comments

1. You keep saying that you were ranked 2nd, I want to know, who the heck was No 1 ?
2. Great Job! It's refreshing to find an honest Forex mentor and I am seeing many of my YouTube subscribers signing up and finding interest in your mentoring service since I posted a short video reviewing you. I also posted a more complete review on my blog binaryoptionschannel.com highlighting what you are all about. In a sea full of scams a guy like Jarratt is necessary, check him out and verify him. He is as legit as it gets. Cheers to a successful 2015 and a great success to all traders!!
3. good job Jarratt and thank you
4. Sorry Jarratt, but this is even more confusing. We had another example today ie: EURUSD. You even made a comment on twitter : "Lower inflation figure from Eurozone- 0.5% vs expected 0.6%".  When you look at the chart the very moment "bad" euro data came out they started buying euro like crazy and EURUSD rocketed up 62 pips significantly exceeding its average daily range.
   Jerzy
5. Does Fundamental Analysis Really Work?
   
   Many people think fundamental analysis doesn’t work, and the main reason for this is because they simply don’t understand it correctly.
   
   Over the last 2 weeks we’ve had a couple of news announcements that have confused people into thinking that news trading is pretty random, and almost impossible to make consistent profits from.
   
   I will look at this event in more detail and explain why things moved the way they did.
   
   The particular event was Australian private capital expenditure, and this figure came out at -4.2% which was much worse than the expected 1.6%.  Many retail traders who look at that particular figure would think that the AUD would fall off much worse than expected data.  However surprisingly, the AUDUSD rallied almost 100 pips, which continued into the following day where it broke 0.9300. 
   
   Many people would see this and instantly think that news trading doesn’t work, and it’s completely random. 
   
   Basically, this is not the case, and anyone who thinks that simply doesn’t understand how news trading works.  Which is the reason I’m trying to explain it, and give you a better understanding of why things move the way they do.
   
   You’ve got to look behind the headline figure, and in this case with the Australian private capital expenditure, overall companies were investing less which is of course negative, however there was two things you need to bear in mind from this figure.
   
   Firstly, the projections for the coming year were much revised up, which provides a very positive outlook. 
   
   Secondly, it was shown that companies and businesses away from the mining sector (which is one of Australia’s biggest industries) were expanding at a faster pace, and the reason that’s important is because the RBA is focused on getting Australia away from relying heavily on mining and exporting commodities, particularly to China. 
   
   So in summary, they are trying to move away from depending on mining so heavily, and from that figure, it showed that the transition from mining to non-mining is going very smoothly, which overall is bullish for the AUD.