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News reports have the potential to move the market of fx trading in a major way. |
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| There is a lot of profit potential in the resulting volatility. You may see charts showing how much you could make. Somehow in real life it doesn't work. |
Indeed, in fx trading with new, with the large profit potential comes the possibility of a large loss. News trading is dangerous because if you're caught on the wrong side of a trade, you may lose money so quickly that you won't even have enough time to manually close your trades. Even stop loss orders are unreliable because of the high probability of slippage due to the sudden price surge.
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Many traders prefer to stay out of the market of fx trading while strong news reports are released,such as interest rate decision.They choose to stand in the safe side watching the news effect on the market of fx trading and refuse to trade in such risky condition.
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