Is trading on economic news releases with the forex market a good idea?

Answers:2   |   LastUpdateAt:2012-10-23 01:58:02  

Question
DMAR
Asked at 2012-08-07 05:59:01
Is trading on economic news releases with the forex market is a good idea?
Answer1LillllyAnswered at 2012-08-09 11:08:41
My supervisor is an expert on FX. He once told me about a paper where the authors tested all models that predict currency movements based on macroeconomic developments . He compares them to a random walk. The random walk did better .

In other words, if the FX trade based on economic news releases and trade based on flipping a coin , you probably will do better than you.

The variable that had the actual predictive power is the order flow . If you could see he was starting FX trading , then you can predict where they will go . Unfortunately , the only people who have access to that information are institutional traders.
Answer2DaishaAnswered at 2012-10-23 01:56:48
Forex is the most volatile market is very unstable , must `` all day long ( if the position is open ) sitting near PC and watch its movement . From my own experience , I do not like it, but some people do.To check for yourself that you can open a demo account and see
Related Questions
1
  • Answer This Question:Is trading on economic news releases with the forex market a good idea?