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novice
howdy over there!
You opened a very good topic.
It’s great to be aware of upcoming economic events and what affect they’ll have. This gives you a view on a possible direction of the market you are trading. However, as for trading itself what you trade is the price movement and not the actual event. Sometimes events are priced into the trend long before it occurs (buy on gossip, sell on fact kind of thing). I think if you wanted to trade FX on “news” and “events” alone you’d need a very unique system IMHO.
As you said, it’s all very subjective (sentiment) and most of economists and other market “experts” are most bullish at the top end of the market and most bearish at the bottom.
Since you trade the price movement you should have a system, which will allow you to capitalize on opportunities presented by the market. You don’t know what the market is going to do tomorrow but you should know what you are going to do. I don’t think saying that market is rational or irrational is 100% correct. I think the market is RIGHT at all times and us trying to figure out why this and not that is happening is rather an energy draining experience. The market can stay “wrong” longer than you can stay solvent.
TRADE WHAT YOU SEE AND NOT WHAT YOU THINK
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