Do you enter after or before the news?

Hi

Simple question..

When do you trade.... you enter after or before the release?

comments welcome

i don't care because it's reflected in price movement anyway

Do you trade nonfarmpayrolls?

sorry i misunderstood ur previous question, i dont trade the news...

I trade the news in a big way.

In fact, the best thing I could find is a release in which I know there will be volatility (before release), and wont be a retraction.

And the effects of the carry trade are also kin.

how many time before the release do you enter at market?

thanks for your response

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IT DEPENDS !!

a while back, one knew that the mere mention of the words USD would lead to an immediate reaction, but while volitility still exists, traders have grown "used" to it a bit more.

for me anyway, the easiest way is to wait for the first stirrings and go with the flow, although sometimes there are very specific clues -- few days ago, with the non-farm, the yen was being dropped and dropped and dropped and dropped in the london market prior to the 8:30 US release. Needless to say, what goes down comes up really fast when all the traders expect it. THIS was a giveaway for traders, as the currency reversed approx one minute before the announcement and started up --- my ferret could tell what was happening in this situation -- the only thing missing was the fire engines and sirens !

I know traders that open a hedged position with the news, knowing in advance that most incorrect positions will reverse to the 50% fib line (at the least) after the initial excitement, and they will simply average down (or up) to even out the losing side after theyve taken profit on the winning one.

I dont "trade news" per se, in that i dont go looking for it, but I'm usually in the market when it happens, and theres just no reason not to enjoy a 70 pip move in each direction, not forgetting the 5 pip flips along the way !
(couple weels ago I actually pulled in 650 pips (lot multiplication included here, of course) riding both directions of a 75 pip move, and scalping and flipping all the way thru (i hold a decent sized core position, add on dips or rises (depending on the direction of the move) and then flip the cycles as the currency moves in either direction.

works for me anyway and beats working !

enjoy and trade well

mp

i choose before news because i have the tips......

please... rquest

I just take stops off before the news, since it's usually stop-hunt time. as well as orders. I will occasionally close positions just before the news if things are looking volatile. But most of the time I just ignore the news itself, and watch how the market reacts. Though I will trade news from StatsCan, since everyone seems to ignore it for at least a few minutes after it comes out, and it can be a good time to position $/CAD.

I used my broker to separate my account to few sub desks. During the news time I’ll do this:

1. I open buy and sell at the same time with great margin requirement on 2 separate desk before the news commence, so it will have margin call and the account will automatically closed after 20 pips (around that figure), but if the position is correct it will return me great return too. This kind of method insure me to have better price during the news time.
2. Another desk is based on Bago method use 5 secs chart on Oanda. I used Bago method to enter the trade few seconds after the news.

By that time, after the news announce, I will have two desk open with profit (hopefully)
So your question I answered both. I used both method.
Thanx…

I don’t trade yellow green factory news. I’m basically technician, so if you want me to poll, I just say, I don’t trade news because as you can see from my previous post, I enter the news technically. I think burger king is the master of news, you’ll learn a lot from him, he straddle the news, but for me, just open buy and sell at the same time few minutes before the news (so you have 20 pip loss on another desk and more than 20 pips profit in another desk, hopefully) then enter the news also few seconds after the news. Both tactics I admit is technical tactic.

STRADDLE is the way to go ....
but....
Only on HIGH IMPACT news releases.
The Meduim News releases have to be investigated more before you decide to trade it. Need to look at past preformace at the time of the release and then take a conservative TP level.
I need to start removing the SL durring these trades...or at least a deep SL 50 -75 pips.
Been stopped out pretty quick on several of them after a really brief profit showing.

burger king have a script to straddle the news. If your broker use metatrader as the software. Use it. You want regret it.

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while i would certainly be interested in seeing a scipt for what is essentially a "hedged" position (being long and short at the same price before the news), I havent a clue as to why it would be needed (im open to being educated, but the concept is SO simple that i dont understand the need !)

as i stated before, (and i try NOT to get into this if i can help it) one simply opens a long and short of the same currency at the same price and waits for the impact of the news on your positions. Let us now assume the price rises dramatically on the release, and your long shoots up to the sky, leaving you with visions of Aston Martins and 3 starlets in your future (reverse the situation for the woman traders please !)

You are sitting there with a wonderous profit, leaping for joy while all the neighbors are calling the police because of your disturbance of the peace, when you glance over and see that your short position is right up there with your profit, only its in RED, has minus signs and parenthesis around it, and suddenly brings you down to earth with a horrible crashing blow !

Gone are the visions of starlets or chippendales, gone is the Aston Martin, gone is your breathing and heart rate, gone is the thought of paying this months rent !

NOT SO FAST THERE !

Forex is one of the most wonderfully, technically driven trading vehicles in the world (which is why I no longer trade equities) and invariably honors a few simple concepts --- support and resistance, the Linear Regression Channel and the Fibonacci lines (some use murry math, which produce essentially the same results, but Fibonacci has been around longer (since the 1400's) so i use them, and i can immediately shift from regression to extensions, both short and long term)

Once one realizes that most SECONDARY moves(the profit taking and shorting move DOWN from the original UPSIDE move) go back down to the ORIGINAL trend line, and at the very least the 61.8% fib line (i personally use 50% as a "safety") one realizes that one can fairly easily predict what will happen once the profit taking from the huge move starts.
(YES, i fully understand that some moves actually go back down 100% and even more, but knowing how to judge those moves, while not beyond the abilities of GOOD tech chartists, is beyond the scope of this reply !)

If i decide to go into news with a hedged position (which I rarely do, btw -- but sometimes I will inadvertently be holding a short and would like to get out of it with a profit fairly soon), I will take my profit from the long when i please and then "average up" my short (assuming the currency pair went up, of course) AND SET MY TP AT THE 50% FIB RETRACEMENT ! (ive learned long ago that he/she who tries to find the exact bottom or top of a move that may take 24 hours and is subject to many variables in that time period, inevitably leads to one becoming a "loser" ---- granted, should you be able to watch the mkt personally for those 24 hours, you can keep moving your t/p down as the price breaks each support level, but few are the traders i know who routinely spend 20 hours a day trading (well . . . . . . . , let me leave myself out of this discussion for a while !) Also, my trading partner (who is a woman -- imagine that !) routinely makes 20 - 50 pips on these "reversal moves" ---- shes MUCH better at this than I am !

By setting my tp at 50%, I only have to double my holdings on the short side to break even -- if i desire profit, I double my "average up" over my original holdings, which assures me of profit at the 50% fib !

Once you grow used to your currency and its historic movements, you may find my 50% retrace to be "conservative" and move to a higher percentage of retrace, with a larger amount of equity added to the average, but that should ONLY be based on knowledge of your currency.

Once one is used to this behavior, its very simple to make very nice profits on the original news motivated move, and then to make an equally profitable move on the profit taking and the inevitable move a currency will make back to its longer range support area ! And none of what ive said includes the many flips and scalps one can take as the price drops, retraces and then drops again !

If youre not using fibs, LRC's and recent support and resistance areas (including the pivot points and most importantly the DEMARK high and lows) you are flying completely blind and dont stand a chance !
As a point of example, if your currency is in a decent uptrend, past the European open and its not yet noon in the US (when the Japanese market closes and the currency inevitably reverses its trend) look to see how close you are to the DEMARK high or low --- within 50 pips, and with a few hours to go before the noonish reversal, one can place money on the currency going to the NEXT support or resistance area past the Demarker, although I tend to conservatively use the Demark itself as a t/p (actually one or two pips BELOW the demark, so traders HAVE to go thru my price to get to the top, assuring me of getting my sell price !)

If you dont understand simple tech analysis, get yourself someone who can teach it to you --- for all you need with forex, its amazingly simple (even though many try to make it harder than need be) --- once you can look at currency charts as a "bumper car" rink, where the prices bounce off of support and resistance, daily, 10 day and intraday, youll have forex licked.

It aint brain surgery (rocket science, at this point, is amazingly simple -- point in the right direction, light the fuse and wish the survivors luck) and while no one is going to say its simple, experience and the following of some super simple rules will get you back to the Aston, the starlets (chippendales) and your place as one of the "masters of the universe".

At the very least, youll be one of the few "international bankers" out there and entitled to wear a 3 button suit, vest and wingtips -- the ivory handled walking stick and lackey carrying your briefcase are optional here !

enjoy and trade well

mp