فوركس ساتو

EFFECT OF WORLD NEWS
Occasionally there is huge news in the world. When devastation occurs of
course we need to stop and pray for the countless lives affected by the
horrendous events. After your initial prayers then run to your computer to
watch how the markets react to the news. If any particular country is affected
then pay attention to the currency pairs with it’s currency. Some such
profound events include 9/11, London bombings, and Hurricane Katrina
(devastating New Orleans).
Not only do horrendous world events trigger reactions in the markets, but so
do other significant events such as elections, war related events (i.e. when
Saddam Hussein was captured), and freak power outages (as happened in
eastern North America). I’m not talking about Fundamental Announcements
(with the exception of elections), but bizarre unexpected or unanticipated
events.
Generally the world reaction and the reaction of the markets won’t make a
drastic jump in price, but a very strong trend. This makes for some excellent
trading opportunities that may last for the day or even days (depending on the
nature of the event). Once the “dust settles” the market usually figures that it
overreacted and often will do a gorgeous Fibonacci retracement (another nice
trading opportunity on the expected retracement), however note that the
market doesn’t always fulfill the Fibonacci extension (depending upon the
original direction of trending).
Furthermore, some events will affect other markets, so if you also trade stocks
& particularly commodities (I started in commodities but now am virtually
Forex exclusive) then look into the relevant ones too. (i.e. Katrina had
obvious impacts on oil, but orange juice & sugar futures were also
affected. Katrina will no doubt (as I’m writing this soon after it happened)
have other financial effects affecting the whole US economy as a cascading
effect primarily from the increased oil/gas prices. FYI, yes I did profit from
Katrina, but also prayed.)
So whenever dramatic world events happen be sure to watch the market
closely and trade. forex sato  forex in here