The forex markets will tighten up in anticipation of a news release of new economic numbers or information. The forex trader hoping to profit from the news release will hope that the number triggers a breakout. Investors will ride the breakout until the momentum stops. However, if an investor fails to have stops in place before making investments, the trend could reverse and all those profits could quickly turn into losses.
Source: http://www.investorguide.com/igu-article-974-forex-trading-forex-trading-based-on-news-releases.html
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