trading the news...

the question was raised on another thread i created, and it was said that you shouldnt listen to the news only know when its dropped.

it was also said that brokerages often manipulate trends- im curious about this.
can anyone elaborate about that point?

Start here, similar threads. Also the search function at the top can be quite useful as well. This has been hashed over so many times there is really a lot of info on it..

Brokers can do all sorts of sneaky tricks that you typically wont see on demo accounts. Wide spreads, slippage... all in all news trading is pretty much a thing of the past for most people. A few years ago it was profitable but not so much anymore.

Oh and you might get a lot out of checking out www.babypips.com, try the school out, a lot here have been through it and it is free

If you are new never, ever trade the news, it will rape your account if you dont have proper money mangement or limit orders set, even limit orders can mess you up.

Lately because of all the bailout mess news has affected the market in the not so norm way. Good news has done nothing as well as opposite for its siding currency - unexplainable.

And alot of stop hunting during news.

Brokers don't manipulate trends. Most brokers are too small to manipulate prices more than a few pips. As for sneaky - would you fulfil an order at a price when the price has already moved 10 pips? We just steer clear of news releases unless price action dictates. Then make sure our stop loss is adequate.