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Review the Market

Since the Forex market is almost always open, every time you step away from the market, you must review what has occurred when you come back. This prevents you from making uninformed decisions based on partial information. For example, perhaps you believe the Japanese economy is on the rebound, which should cause the yen to strengthen against the U.S. dollar. You stop trading at 4 p.m. (the close of NYSE trading) on a weekday and turn off your computer.

In the meantime, Japan opens, and the government growth reports are released. They're negative, and the nikkei plunges. Although the yen remains stable, the markets believe that Japan has not turned the corner on its low economic growth. This belief could affect the yen's value. In addition, from a technical trading standpoint, tech indicators will still be generating signals with the passage of time—regardless of actual trading activity.


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