The Market Direction Explained – Forex Lesson 101

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the market is often moved by news

The Market Will Do What The Market Must Do

The last week has indeed been a hands-on training lesson of the most fundamental Forex lesson: “The market will do what the market must do.” 

This statement in 2022 is now more pertinent than ever before for several reasons. 


I’m well aware that most relatively new traders will be saying, “huh?” and scratching their heads. But, simply put, we are talking about the NEWS! 

The technology afforded to us with smartphones, social media, Instant messaging keeps us informed in real-time of events and live happenings worldwide. That is why the prominent market participants, banks, and institutions have seasoned traders glued to their devices 24 hours a day. They are looking out for any occurrence that may change the direction of the economic situation either by social, financial, political unrest, or war – as we have experienced over the last month. 

Other movers in the news are natural disasters, civil unrest, an economic announcement, or an opinion by someone of prominence.

Even rumors can move the market, such as a hint of an illness or death of a country leader. 

This list goes on and on. 

Even a poorly worded statement or situation perceived as relevant can send the markets scattering in all directions even before a clearer understanding of what happened. Believe it or not, this happens very often, resulting in a false alarm situation. A strong trending pair can reverse course screaming in the other direction, and then it can change course again in a split second. 

Therefore we conclude with our Lesson 101 of Forex Trading: “The market will do what the market must do.”

What Is A Trader To Do?

Stay tuned for my next update – the answer is easier than you may think.

Or, learn about this and more in our one-on-one Forex Mentoring Course