Best Way to Trade News?

Hi,


i Went Through Your Post And I Decide To Reply You.


Although, Am New Here But I Want To Tell You That I Make Money When I Trade News Than Trading Technical.


The Way I Trade:


- I Place My Order 1-2 Mints To The News Release And Use Mt4 Platform.


- I Place 10 Pips Away From The Market Price On Both Side [sell And Buy].


- 10 - 15 Pips Stop Loss On Both Side [ Depend On The Size Of Your Account]


- 15 - 30 Pips Take Profit [ Depend On The Size Of Your Account]- You Can Try It Too



- Hey Greedy Kills


Note.......at Time The Market Wipsaw But You Will Make Profit From 7 Out Of 10 Trade



...................keep Making Pips.

Hey ForexFactory,

A new member to the forum community here. I have been trading for about 3 years now. The first one being mostly on a demo and now for the past 2 years I have been trading a live account. However, I am looking to seek a new trading strategy. I don't normally trade through news but I was hoping that I could try this out. Could someone please point me in the right direction in terms of what kind of skew and volume I should be expecting. Any material on trading the news would be extremely helpful.

- Matteo

Are You the same Matt Shaw from FOS.com ?

Try to go to fxvolume.ru
I use their countings and it looks superb.
Attachment attached
Hope it will help You.

The best way to trade the news is to not trade it.
Why?

Because brokers know about it.
Believe it or not, there are ways to make you lose.

Straddling use to work, but those are the old days.

Rules change in Forex just like in BlackJack.
Rules are changed for the advantage of the house.
Either accept the rule, play by it or don't play at all.

Charleyher is correct.



1). During major news events, brokers increase their spreads ( I’ve seen Oanda increases 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. Luckliy, 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.

lol, priceless, I love this place!

trading news is almost impossible

You can still profit from News releases..but the best idea is not to try to always trade the initial spike. Euro/yen is a good news mover. Here's what I do..and this pertains to news releases during the US session (8:30 am est releases or 10:00 am releases) Watch the initial spike..if it explodes 20-30 pips quickly, you know you have some good volatility. Often, after the initial spike, the big players cash in their profits and you'll see a quick pullback of 10 or 15 pips or so..then it may pause for a minute or so. Then the price will often resume moving in the direction of the original spike (this happens on non-farm almost always)As soon as you see it resuming, that's the entry. Keep your stop small and exit as soon as you sense the price is stalling or reversing. Another thing that happens after an initial spike is..instead of a pullback, the price stalls for a minute or so. This works if the pair just broke through a good support or resistance level and the next level has plenty of room to run. Now you wait for "the second push" and enter as soon as you see that happen. Again exit when you make your pips. This takes practice, but is a safer way to play news moves. If you can watch a dow futures chart while trading euro/yen, you have a big advantage, if you see that the news dramatically affected the dow, often the euro/yen will follow that direction and as long as the dow is moving, you have extra confirmation of your euro/yen trade.

hello i also trying out that method of trading because it seems to be more effective because at the moment of trading brokers account might freeze my question is that if the news is followed by the FED statement i observe that the movement can start in a particular direction and suddenly change direction therefor spoiling the stop loss how do you trade such conditions?