ok so appearently here is what I have noticed with news. I had a long trade on chfjpy and I still do with a 100 pip stop loss, Gladly I am only using 2K lots for my trade. The trade jumped down against me 60 Pips within a matter of seconds. I could not figure out why. CHF no news today, JPY no news today. So what the heck gives?
After thinking back about previous times I have seen his happen I have finally come to the realization of fundamental correlation affect on news.
USDJPY was a mainly affected pair. The usd had bad news on red flags so what happened with USDJPY, well it tanked and as always everyone runs to the JPY for cover.
Conclusion:
This inadvertently affects all pairs associated with jpy since JPY was being bought up and the USD was being shorted. Even though jpy did not have any news related to it one bit today therefore I got screwed on the chfjpy long trade.
Am I pissed? Yes! Did I learn something? Yes! This is good to know
I will now never trade a pair that is inadvertently affected by news, I did not realize there was relation. This may be amateur to some of you pro's yet this is new to me, why I did not not grasp on to this fully prior to, this day, I dont know however, now I know what not to do.
After thinking back about previous times I have seen his happen I have finally come to the realization of fundamental correlation affect on news.
USDJPY was a mainly affected pair. The usd had bad news on red flags so what happened with USDJPY, well it tanked and as always everyone runs to the JPY for cover.
Conclusion:
This inadvertently affects all pairs associated with jpy since JPY was being bought up and the USD was being shorted. Even though jpy did not have any news related to it one bit today therefore I got screwed on the chfjpy long trade.
Am I pissed? Yes! Did I learn something? Yes! This is good to know
I will now never trade a pair that is inadvertently affected by news, I did not realize there was relation. This may be amateur to some of you pro's yet this is new to me, why I did not not grasp on to this fully prior to, this day, I dont know however, now I know what not to do.
Know when to hold em, Know when to fold em!