I see what your saying, and your right if you try and trade the actuall news spike it is unlikely that you will make money, but that is not news trading you may as well get a monkey and tell him at 1.30 GMT on the first friday of every month press that button leave it and you will make money.
On december the 04 nfp i was willing to trade the spike but was only willing to place a long position, I like many other news traders waited for the magic word, upward revision then entered my positions in the opposite direction to the spike, normally my positions are in place hours before any news release to take full advantage
and made a good 100 pips, if i remember correctly Moe also predicted the fade, i closed my position, was happy and walked away, but again i think moe bagged another 160 pips on the fade. Thats news trading!
I use support, resistance and economic news to predict entry points and direction, then trade accordingly. that is also news trading, trading spikes will loose you more money than you can make. Last fridays nfp i had an entry order waiting whilst i was asleep at 1.3064 i think, then banked at
1.3100 as i was happy with the profit on the table and had no clear idea
about the nfp results.
hope that helps
On december the 04 nfp i was willing to trade the spike but was only willing to place a long position, I like many other news traders waited for the magic word, upward revision then entered my positions in the opposite direction to the spike, normally my positions are in place hours before any news release to take full advantage
and made a good 100 pips, if i remember correctly Moe also predicted the fade, i closed my position, was happy and walked away, but again i think moe bagged another 160 pips on the fade. Thats news trading!
I use support, resistance and economic news to predict entry points and direction, then trade accordingly. that is also news trading, trading spikes will loose you more money than you can make. Last fridays nfp i had an entry order waiting whilst i was asleep at 1.3064 i think, then banked at
1.3100 as i was happy with the profit on the table and had no clear idea
about the nfp results.
hope that helps