Okay, I didn’t mean to sound like it was advertising. I was just trying to tell you how to approach my forex trading, and what kind of system I have for that. So let me summarize it again for you, and let me make it more clear. Each report has an expectation number that largely is expected by economists. These expectations are made by polling dozens of very smart economists, mostly wearing suits and glasses. They make their expectations and forecasts by looking at the country’s conditions by using previously released indicators. At any given time, you have to assume that if the number comes out very close to these expectations, the market already priced that number in. However, if the number comes out deviating from the expectations, then the market must price in the new data, and make a move. If I was to relate it to real estate, I would look at the house at current condition, and I would say that it’s worth let’s say $200,000. However, if I put in a new kitchen and new bathroom, it would be worth, $220,000. If I was to put in something else, it would be worth more. So from experience of trading these economic indicators hundreds of times, depending on market sentiment, and the deviation from expectations, I know approximately where the currency should be priced. And based on that, we try to buy that currency as cheap as we can, so that we could sell it for a profit, once it makes its full price adjustment. 
Most of the times, depending on the indicator, the number, and market sentiment, the total adjustment is fully made within the first 90 minutes of the report, though many times it can take a lot less. I believe that after 90 minutes, and many times less time than that, the market goes back to its normal activity. Like in the real estate business that I told you about earlier, there is no formula to handle each individual case. Each case in real estate is unique in its own way, and each trade during these economic fundamentals is also unique in its own way, but the more you trade, the more deeply you understand how these indicators affect the forex market.
By following these economic indicators, I usually get a very good sense and awareness of the market, so I know what everything should cost so to speak under current conditions, and because of that, I can take advantage of some intraday opportunities. To give you an example, just today, as I am writing this article, I had a very nice trade that had nothing to do with watching the fundamentals. What happened was yesterday, I was trading an Australian report, and Australian employment indicator came out way above expectations, the day before that, Australian retail sales came out way above expectations also. My subscribers and I made money on both during the actual time the indicator was announced. I remember that AUD/USD was at 0.8335 after the employment indicator. Yesterday, I woke up after some very nice sleep, and I saw that AUD/USD was trading at 0.8270, then few hours later at 0.8240. I read the most recent news, and there was nothing positive coming out of the US. So I figured that AUD/USD went down based on some fluke in market activity. Maybe there was a big merger going on in the US, and somebody bought large sums of US dollars, and drove the price up across all currencies. I was very convinced that AUD/USD has to go back up to its fundamental price, based on current country conditions, because obviously smart money would immediately see an opportunity. I wrote a note about this trade in my free forex trading signal that I send out to everyone who wishes to receive them complimentary, and I believe the price was at around 0.8269 as I was writing it. I told my subscribers, that I felt that considering the current economic situation in the US and Australia, the price for that pair should be at least 0.8320, and I told them that I went long. Next thing we knew, the price climbed back up and tested the 0.8330 level again. And I have many examples such as this one, and such feel for the market of where everything should be, unless something changed fundamentally, is a feel that everyone will develop who is willing to put the time into following these indicators on daily basis. And the great thing about it is you don’t have to watch the market all day. You just come in, listen to the indicator, trade, and go back to your other activities. And many times we don’t do anything when the indicators come out exactly as everyone was expecting them, and the price doesn’t do much, because the expectations are generally perfectly priced in. Same as I was willing to wait for the perfect deal in real estate, and I was okay if I had to go through 50, in order to find 1, I am also willing to wait for the right forex trading opportunities. Unlike most traders, I don’t trade on probabilities, I trade on certainties. My intention is to be 100% right, and to make money on every single trade. Unfortunately it doesn’t happen all the time, because sometimes the market simply has its own mind, even during some fundamentals, but I would say more than 90% of the time, I can fully explain the move and it would make sense of why something happened, and that’s powerful. Of course I make fundamental errors all the time, I get too greedy, or too fearful, during some normal volatility, but the more I trade the more I get used to it, and the more money I make. And it will always be like that, I know I will never be perfect. The market will always change, and I will always carefully listen to it, and change and adapt to it. And that’s true of any market, whether it’s ebay, or real estate, or anything else.
Now you are probably wondering, why in the world some of these brokers are upset about some of our trading activity? Well…remember how I told you that some of these brokers are bucket shops, their business model is based on market’s efficiency, so back in the day they figured since most traders use different technical tools, at any given time, there will be equal number of buyers and sellers, same as in casinos, pretty much same number of people are betting on red or black at any given time. So the brokers figured that instead of spending money on proper technology and pay per transaction in order to pass their client’s orders into the real market, they’ll just keep all the trades inside, match the traders against each other, and overall, they should be able to collect their spreads, which is equivalent to a zero in a casino, and since most traders don’t know what they are doing and lose money, the broker didn’t mind covering the once in a while dis-balance of buyers and sellers with their own money. But of course, when I taught this fundamental way of trading to thousands of people, and some brokers had several hundred accounts, all going into the right direction with the market, the brokers started realizing that they simply didn’t have enough dumb people taking the opposite direction, and every time they had to do it, they lost money. Plus because of technological limitations, some of these brokers had prices lagging by 1 or 2 seconds from real market, so at the time the announcements were release, we were able to get in at pretty much rock bottom perfect prices. Those were the good old days with the bucket shops. Now it’s a bit tougher, the brokers increase their spreads during news times, and play various games, but we found a way to adjust to their games by using limit orders, and slippage controls, in order to protect ourselves against bad fills, and I also started taking a lot of after spike trades that happen several minutes after the release is announced, and all the crazy price action and spread is done and over. There are all kinds of trading opportunities, even if we miss the initial price jolt so to speak. Remember, there are always orders that were entered before the release, and at the time of the release take profits are being hit, which creates volume in the opposite direction of the report, and causes retracements that we can use to enter, among with many other things.
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