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How do i trade using news?

  • #1
  • First Post: Jul 1, 2009 2:32pm Jul 1, 2009 2:32pm
How do i use news releases to trade and how long do i take after a news release, to enter a trade.????
  • #2
  • Jul 1, 2009 11:32pm Jul 1, 2009 11:32pm
Quoting pipseacher
How do i use news releases to trade and how long do i take after a news release, to enter a trade.????
Don't trade the news directly, ever. It's just unpredictable. You can trade the fundamentals (like I do), but actually it takes some time to get through this. And it's more long term trading, so often no intraday action.
  • #3
  • Jul 2, 2009 12:37am Jul 2, 2009 12:37am
Quoting pipseacher
How do i use news releases to trade and how long do i take after a news release, to enter a trade.????
To be a successful news trader you have to be quick and get in on the correct direction before other news traders and before the market becomes informed of the news. Focus on one piece of news on one pair and look back over a year or two on how the pair reacted to the news.
Economists have forecast 9 out of the last 5 recessions
  • #4
  • Jul 2, 2009 1:21am Jul 2, 2009 1:21am
Quoting markmm
To be a successful news trader you have to be quick and get in on the correct direction before other news traders and before the market becomes informed of the news. Focus on one piece of news on one pair and look back over a year or two on how the pair reacted to the news.
This doesn't work. Actually there are no "news traders" out there. At least not successful ones.
  • #5
  • Jul 2, 2009 1:45am Jul 2, 2009 1:45am
Quoting Xaron
This doesn't work. Actually there are no "news traders" out there. At least not successful ones.
Really? Sweeping statement to make. Can you post your research results that show this? Or is it opinion? I would be willing to bet my house that the reality is YOU cant trade the news successfully, therefore you think it applies to everyone.
Economists have forecast 9 out of the last 5 recessions
  • #6
  • Jul 2, 2009 2:00am Jul 2, 2009 2:00am
It's just my experience. Believe me. I've seen many traders claiming they can do it. It was possible a few years ago, but that was just exploiting the latency of some retail shops.

But maybe you can prove(!) your statement?

I only know: The big guys (the ones who move the markets) don't trade the news.
  • #7
  • Jul 2, 2009 2:07am Jul 2, 2009 2:07am
Quoting Xaron
It's just my experience. Believe me. I've seen many traders claiming they can do it. It was possible a few years ago, but that was just exploiting the latency of some retail shops.

But maybe you can prove(!) your statement?

I only know: The big guys (the ones who move the markets) don't trade the news.
I didn't make a statement I find making sweeping statements have the tendency to make me look foolish.

So what you are saying is based on your limited expereince (probably reading through FF, unless you worked for a broker?) that trading the news successfully using a retail broker could only be possible a few years ago by exploiting the latency of price feeds?

Not exactly the same as your first statement but I would tend to agree more with you now. Except the big guys statement that is another sweeping foolish statement, unless you back it up with evidence.
Economists have forecast 9 out of the last 5 recessions
  • #8
  • Jul 2, 2009 2:13am Jul 2, 2009 2:13am
Ok, just a question. Why are there (sometimes) such huge spikes during important news?
  • #9
  • Jul 2, 2009 3:12am Jul 2, 2009 3:12am
Quoting Xaron
Ok, just a question. Why are there (sometimes) such huge spikes during important news?
Lots of orders in one direction with no orders on the other side to soak up those orders, this leaves a liquidity vacuum.
Economists have forecast 9 out of the last 5 recessions
  • #10
  • Jul 2, 2009 3:35am Jul 2, 2009 3:35am
Quoting pipseacher
How do i use news releases to trade and how long do i take after a news release, to enter a trade.????
I don't know anything about news trading, but when you've figured it out, there's some potatoes in a minefield that I need picking.
  • #11
  • Jul 2, 2009 3:40am Jul 2, 2009 3:40am
Quoting markmm
Lots of orders in one direction with no orders on the other side to soak up those orders, this leaves a liquidity vacuum.
I'd say almost no orders in both directions.
  • #12
  • Jul 2, 2009 4:11am Jul 2, 2009 4:11am
Quoting Xaron
I'd say almost no orders in both directions.
Price wouldn't move if there were no orders in both directions.
Economists have forecast 9 out of the last 5 recessions
  • #13
  • Jul 2, 2009 4:19am Jul 2, 2009 4:19am
there is a free live realtime newstrading webinar on now presented by wayne macdonnel fx bootcamp
  • #14
  • Jul 2, 2009 4:21am Jul 2, 2009 4:21am
Quoting markmm
Price wouldn't move if there were no orders in both directions.
Well yes. I mean almost no orders around the current price before the news.
  • #15
  • Jul 2, 2009 4:27am Jul 2, 2009 4:27am
Quoting birdt
I don't know anything about news trading, but when you've figured it out, there's some potatoes in a minefield that I need picking.
LOL, great, I'll have to remember that one!!
  • #16
  • Jul 2, 2009 5:38am Jul 2, 2009 5:38am
Quoting Xaron
This doesn't work. Actually there are no "news traders" out there. At least not successful ones.
How about MaXeY?

He changed 4 brokers' policy.
  • #17
  • Jul 2, 2009 5:53am Jul 2, 2009 5:53am
I personally cannot see that news-trading is a long term profitable strategy... however I cannot back that up with my own evidence. It is just that there are huge spreads and frequent slippage to consider when price moves so quickly (using retail brokers). The only way that I can see it possible is if you do not use a retail broker.

Perhaps there are some traders here at FF who do trade the news who might like to shed some light on it?

Regards,

Dan
  • #18
  • Jul 3, 2009 1:34am Jul 3, 2009 1:34am
Quoting pipseacher
How do i use news releases to trade and how long do i take after a news release, to enter a trade.????
Pipseacher,

The answers to your questions have to come from you. Get yourself a demo, spend some months trying/testing and eventually you will figure out what works best for you.

However, trading the news directly is GAMBLING because no one knows what the effect of the news on the market will be (most of the times).

Z
  • #19
  • Mar 13, 2010 11:11pm Mar 13, 2010 11:11pm
Here 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 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 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.
  • #20
  • Mar 16, 2010 5:28am Mar 16, 2010 5:28am
Quoting mcmillan
Here are some hard truths traders need to...
Read the post number 7 here
http://www.forexfactory.com/showthread.php?t=27286
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