Yes, Forex has traffic jams… or do you think I’m crazy? Bear with me…

Pic: Walid Hassanein

We’ve all been there, driving down the highway when all of a sudden traffic flow takes a hit. Then it’s stop-go-stop-go for ages. We didn’t expect it and it takes us by surprise, ruining our journey and making us late.

So what does that have to do with Forex?

We’ve all been there, trading away when all of a sudden market flow takes a hit. Then it’s up-down-up-down for ages. We didn’t expect it and it takes us by surprise, ruining our trade and loosing us money.

Now do you see it? Good. So what can you do about it?

Well, there are ways to deal with traffic on the road – you can get traffic reports on the radio and those GPS systems that talk to other cars and check the traffic flow ahead.

In Forex it’s actually much easier. We have a good idea when traffic will hit because we know what causes it – economic news. There are tons of web sites that provide Forex calendars telling you when the news will come out and the expected level of impact it will have on market flow.

So next time you get ready to trade, check the news first. As chance would have it, from tomorrow I will be posting a summary of the days medium on high impact news announcements right here. The post will go up an hour before the London session each day and will focus on those news announcements due in the London session. Subscribe to the blog to make sure you don’t miss them!

I’ll also send a tweet out 3o minutes before each news announcement to remind you, so follow me on Twitter to get the benefit.