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How do you trade news?

  • #521
  • Sep 27, 2007 10:36am Sep 27, 2007 10:36am
as before...
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  • #522
  • Sep 27, 2007 3:38pm Sep 27, 2007 3:38pm
Ariel, hello. A 1 tick chart would prove without a doubt that your system works.


The Never Rude And Just Trying To Illuminate VIPER
The Ever Venomous VIPER
  • #523
  • Sep 28, 2007 3:49am Sep 28, 2007 3:49am
Quoting tradeviper
Ariel, hello. A 1 tick chart would prove without a doubt that your system works.
Hi Viper
Could you expand on this?
  • #524
  • Sep 28, 2007 9:10am Sep 28, 2007 9:10am
2 possible channels
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  • #525
  • Sep 29, 2007 3:03am Sep 29, 2007 3:03am
I really like investopidia.com it's a great resource
  • #526
  • Oct 11, 2007 4:08pm Oct 11, 2007 4:08pm
hello,
In case you didnt know,you can use Amazing Ea to straddle.It closses the second order immediately the first is triggered thus avoiding losses from such trades done manually.
Just search for in this news forum.Sorry i cant post the link now
  • #527
  • Nov 16, 2007 3:09pm Nov 16, 2007 3:09pm
Hi all,

At this site the news information seems to be great. But is there a place to get the live news releases when the numbers come out? Or do I just hit the refresh button on my screen every few seconds to see if there is an update?
  • #528
  • Nov 16, 2007 8:37pm Nov 16, 2007 8:37pm
Quoting gonadoit
Hi all,

At this site the news information seems to be great. But is there a place to get the live news releases when the numbers come out? Or do I just hit the refresh button on my screen every few seconds to see if there is an update?

Get a Reuter's feed......but be willing to pay something like 1500 a month. (I believe.)

Or, trade longer term, and don't worry about it.
  • #529
  • Nov 17, 2007 12:58am Nov 17, 2007 12:58am
Quoting gonadoit
Hi all,

At this site the news information seems to be great. But is there a place to get the live news releases when the numbers come out? Or do I just hit the refresh button on my screen every few seconds to see if there is an update?
If your using a retail broker, TradeTheNews will work($50 for text, $175 for audio)

If you are using an ECN, you need Reuters or Bloomberg.
  • #530
  • Nov 17, 2007 1:02am Nov 17, 2007 1:02am
Quoting clockwork71
Get a Reuter's feed......but be willing to pay something like 1500 a month. (I believe.)

Or, trade longer term, and don't worry about it.
Reuters has several packages. You can get a good feed with them for $750.

Bloomberg is $1700 a month(this doesn't pertain to your post, really. I just forgot to mention the price in my last post LOL)

I disagree about trading longer term, but I think what you're getting at is trying to trade news spikes these days is useless LOL. There are plenty of other ways to make money, including longer term trading.
  • #531
  • Nov 17, 2007 4:16am Nov 17, 2007 4:16am
U can use FFcal v14 EA

It trades d news using Forex Factory news Ie actual and previous and u make huge profits.

Its actually precise(from what i heard)!!!!!!!!but i am yet to test it.

Sorry, I don't know where it is in forums. but,if i see it, I will post d link 2 this forum.....
Everything is bare Making the best out of pips
  • #532
  • Nov 17, 2007 11:25pm Nov 17, 2007 11:25pm
Quoting nhallmark
Reuters has several packages. You can get a good feed with them for $750.

Bloomberg is $1700 a month(this doesn't pertain to your post, really. I just forgot to mention the price in my last post LOL)

I disagree about trading longer term, but I think what you're getting at is trying to trade news spikes these days is useless LOL. There are plenty of other ways to make money, including longer term trading.
True, while I would have loved to buy the Euro three years ago....I wasn't trading then.

News trading is becoming more and more dangerous. And besides.....can you predict how the market is going to react? I can't, because it doesn't always react the same way.

There are times when it just doesn't care about a news event for example.

If it jumps, wait about 5-15 minutes for the pullback, and break of the intial high.....go long then, (assuming it didn't hit a brick wall of resistance to force the pullback.) it works well for me.

Trading the spike itself is VERY DANGEROUS.

Unless a news feed will also show you the order flow - it's just never going to pay off.

Clockwork
  • #533
  • Mar 14, 2010 12:57am Mar 14, 2010 12:57am
There are some hard truths traders need to hear:


1). During major news events, brokers increase their spreads ( I’ve seen Oanda increase their news spreads to 25 pips ) . So that automatically eats into any potential profits.


2). During big news events, the markets can move quickly, so if your order even gets filled , it can and will be well beyond your entry price. I know – I tried “news trading” once and had my order filled 50 pips (!) away from my entry price. Luckily, I made a small profit on that trade. But it was just luck – I could have suffered a huge loss just as easily.


3). The markets can discount fundamentals, so you have no guarantee there will even be any big move after a report is released.


4). The markets can also be volatile after a big report is released – your paper profit can turn into a loss literally in seconds, faster than you can exit the trade. News-trading isn’t the easy path to riches.


5). Unless you’re a bank trader, you have no business trying to news trade – leave it for the professionals.


Sorry, but it is the truth.
  • #534
  • Mar 16, 2010 9:04am Mar 16, 2010 9:04am
Quoting mcmillan
There are some hard truths traders need to hear:


1). During major news events, brokers increase their spreads ( I’ve seen Oanda increase their news spreads to 25 pips ) . So that automatically eats into any potential profits.


2). During big news events, the markets can move quickly, so if your order even gets filled , it can and will be well beyond your entry price. I know – I tried “news trading” once and had my order filled 50 pips (!) away from my entry price. Luckily, I made a small profit on that trade. But it was just luck – I could...
You're definatly correct, news trading is very risky!!, let alone the huge disadvantage we are at with broker spreads etc.

Good Luck if you have the balls to take some heavy losses in a flash.

T
  • #535
  • Mar 21, 2010 2:52am Mar 21, 2010 2:52am
All the advice above is correct I'm sure, unless you live in the UK/Europe where you can use spreadbetting companies rather than brokers to trade the news, often with fixed spreads and usually with instant fills.

Assuming you have a fast enough news feed (such as Secret News Weapon, RSS or Forex Muse) then you can trade the news quite successfully - though only for a limited time until the spreadbetting companies realise that you are consistently making good money and then they will put you on "dealer execution only" or give you re-quotes for every trade... then it's time to move on to another company.
  • #536
  • Mar 22, 2010 4:54pm Mar 22, 2010 4:54pm
Quoting mcmillan
There are some hard truths traders need to hear:


1). During major news events, brokers increase their spreads ( I’ve seen Oanda increase their news spreads to 25 pips ) . So that automatically eats into any potential profits.


2). During big news events, the markets can move quickly, so if your order even gets filled , it can and will be well beyond your entry price. I know – I tried “news trading” once and had my order filled 50 pips (!) away from my entry price. Luckily, I made a small profit on that trade. But it was just luck – I could...
Very true... Trading is difficult enough but when you try to news trade your're really asking for a whooping!
  • #537
  • Mar 24, 2010 9:04pm Mar 24, 2010 9:04pm
In about 7 hrs UK Retail sales is being released. The 1 hr count shows a W4:W3 in formation. If the prices retraces to 38-50% of W3 1.4953 to 1.4970 ish, and UK Retail comes out less than expected (and the forecast are significantly higher than last months actuals), then this could be a sell into a W5:W3.
The RPM / sentiment is only slightly long. If it increases then this would support the setup even more in my opinion.

Being new, I have to hold of on illustrations.
Thanks and happy trading.
  • #538
  • Edited 7:29am Mar 25, 2010 2:45am | Edited 7:29am
I hope this isn't too late, but this is a link to a .pdf entitled
"TRADING MISTAKES: Avoid online Forex pitfalls," by renowned
analyst Brian Dolan. In it (on pg. 3), he advises new traders to
avoid "Playing the News" until after the announcement is made.
He likens it to being a soldier in the trenches in WW1 --

Quote
When it comes to trading around data releases, experienced traders
know to sit back, watch the report, assess the market reaction
and then get back into the market. Think about it in terms of
WW1 trench warfare -- do you really want to be in the first wave
over the top? Until you get a better idea of how forex prices
react to data, you can save yourself a lot of unnecessary grief
(and money) by keeping......
(I'll attach that article just in case the link gets moved.)
Attached File(s)
File Type: pdf sfo_dolan_200703.pdf   173 KB | 470 downloads
HELL IS EMPTY, ALL THE DEVILS ARE HERE. -- Shakespeare
  • #539
  • Apr 1, 2010 9:12pm Apr 1, 2010 9:12pm
Measures the change in number of employed people during the previous month, excluding the farming industry.

Forecast: 185
UsdJpy should react in the most predictable manner.
Unemployment rate deviation of > .2 should also be watched along side of NFP.

NFP:
A +- deviation of 50 should move the market -60 to -120 pips
A +- deviation of 90 should move the market +60 to 120 pips

The market has been very sensitive to this number as of lately. In the last 5 years this has been the number to watch. One of my least fav. economic releases because of its mainstream popularity.

If there is a conflict between the NFP and umeployement watch for a quick spike and restracement in the UsdJpy.

Retail positioning stands at 1.1 as there are 1.1 buyers for every 1 seller. For live retail positioning information - click HERE.

The retail positioning ratio signifies that if there is a - deviation > -50 and price breaks 92.7 stops will be hit and price will continue lower.
  • #540
  • Apr 5, 2010 5:18pm Apr 5, 2010 5:18pm
The AUD Interest Rate Decision contains the outcome of their decision on interest rates and commentary about the economic conditions that influenced their decision. Most importantly, it projects the economic outlook and offers clues on the outcome of future rate decisions.

Forecast: .25 hike to 3.25%
A negative deviation of .25 (no hike) should move the market -45 to -90 pips
A positive deviation of .25 (.5 hike) should move the market +45 to 90 pips
There has been chatter of no hike due to deteriorating market conditions in Australia. Therefore, a 0 deviation or .25 hike as expected may create an initial spike.
Retracements are not common, unless there is an accompanying statment following the interest rate decision that conflicts with the release deviation.
Retail positioning stands at -1.1 as there are 1.1 sellers for every 1 buyer. For live retail positioning information - click here.
The retail positioning ratio signifies a nearly equal number of buyers to sellers and a positive or negative deviation will have the same effect.
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