Fundamental News for Forex Sailing

The second step in Forex Sailing is to quickly look at the upcoming fundamental announcements and current forex news to see if there is a reason to doubt the trend you spotted when looking at the daily trends in forex charts.

To understand the first step of Forex Sailing, make sure you read "Timeframes for Trading Forex Sailing" before following this step.

Avoid Upcoming Treacherous Fundamental Announcements

When using Forex Sailing for online forex trading, we don't want to "rock the boat."

Fundamental Announcements that cause a shockwave will cause us to possibly drown (it could be a wild ride, but we'd rather sail safely ).

Fortunately, we can plan ahead for certain "storms" in the forex trading ocean.  To spot these danger zones, all you have to do is look at an economic calendar for scheduled fundamental announcements for the next week.

To find the fundamental announcements of HIGH importance, go to the free economic calendar at dailyfx.com.

If you see any HIGH level of importance announcements, you'll want to avoid trading that currency pair at that time.

This doesn't mean that you won't want to enter a trade, but it does mean that you'll want to get out of the trade before the HIGH level announcements are released.

To spot these announcements, just look for the red HIGH label under the importance column of the economic calendar at dailyfx.com.

Forex News Analysis

Unlike fundamental announcements which are scheduled, forex news happens at unpredictable times. Because of this, we want to quickly scan the news and see what's going on to make sure it won't rock our boat in mid-sail.

To understand forex news isn't total rocket science. What you're looking for are signs that either confirm or contradict your assessment of the trend direction you spotted in the first step of Forex Sailing.

As long as you don't find any MAJOR CONTRADICTIONS to the direction of the daily trend direction, you can proceed.

What's a MAJOR CONTRADICTION?

Let's say you looked at the USD/CAD and spotted an uptrend in the daily candlestick charts.  Now let's say you see a news announcement that of another $1 Trillion government bailout of the US Meat industry. This type of announcement should cause the value of the USD to go down (as major spending does). If Canada doesn't have any news happening, I wouldn't expect the uptrend to continue. I may want to avoid this pair until more news comes out, or until the impact of this announcement is fully realized.

As you gain more experience with online forex trading, you'll be able to analyze forex news more accurately. If you look at your forex charts & scan the news ever day, you'll start to understand how the news affects forex trading more deeply.

Where to Get Forex News

Dailyfx also has a great Forex Market News blog that's constantly updated.  If you check dailyfx.com once a day (or ever 2-3 days) you'll get all the forex news you need

Online Forex Trading for Lazy People

Starting on April 18th, 2010 I will be posting a weekly Forex Trading Market Analysis for the 6 MAJOR currency pairs mentioned in the Timeframes for Trading Forex Sailing post.

I'll be posting a forex chart shot of the trend direction for the week along with commentary for any MAJOR fundamental announcements and forex news. The weekly snapshot will be particularly useful for Forex Sailing.

If you're lazy, you can just read my analysis.

Don't be lazy, you won't learn as much…

Although I'll be posting my weekly analysis for your benefit, it shouldn't replace your own analysis. I could make a mistake, print a typo, or just be plain WRONG (it happens all the time). You're ultimately responsible for the decision you make. I'm here to help, but if you do the analysis yourself (takes less than 15 minutes) you'll even be able to let me know when I screw up (I'll totally appreciate that

Weekly Forex Trading Updates & Shifts

I'll be posting weekly forex trading trend analysis for Forex Sailing before the Forex Market opens on Sunday. The analysis should be good for the entire week. If anything major happens, I'll post it on the rapid forex blog, if the analysis stays accurate I'll leave it until the beginning of next week.

If you're subscribed to the free 20 part forex trading eCourse at rapidforex.com, you'll receive the weekly Forex Sailing updates automatically (no need to do anything else).

Get Ready to Go Sailing

Now that you've identified forex trading opportunities and spotted potential pitfalls, you're ready to plot our forex sailing course and develop your forex trade plan.  In my next few posts I'll show you how to get onboard for Forex Sailing opportunities.

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