I agree to trade news you need to know what are you doing or you may end losing everything. But if you want first you need to check a good economic calendar, and see the impact in the currency and know which currency will be affected. Also you need to set your stop loss, your trading profit or your trailing stop. You also need to know how the market reacts, sometimes when we see a good news we think is going a certain way but it makes just the opposite so take notice of the moves the currencies have. Then ask your broker if it is ok to trade news. Then stick to your plan and finally remember high volatility means higher risk so be sure you know what are you doing before trading big news.
- #23
- Apr 6, 2010 3:17pm Apr 6, 2010 3:17pm
5 minutes before the new event, when the spreads are still reasonably tight, buy and sell, put both SLs at 10 pips and both TPs at 30 pips, that's all
Chances are probably low anyway but what if the price hits the stop loss and starts moving to the other direction hitting the other stop loss?
, there are no magical formulas, you have to optimize each trading method to each kind of new and each pair and even if you do that you have no guarantee to success; one thing you can do is to analyze past events and play with probabilities: if the price moves in one direction, for example 60 pips in most of Fed Reserve news events before to retrace, you can put SLs at 10 pips and TPs at 60 and you only need to win 1/3 of times to gain money: 1st attemp: -10-10=-20; 2nd attemp: -10-10=-20, 3rd attemp: -10+60=+50, result: -20-20+50=+10 pips.
- #26
- Last Post: Apr 6, 2010 6:34pm Apr 6, 2010 6:34pm
- Joined Oct 2008 | Status: Sentiment and Global Macro | 2,321 Posts