forex news trading

hi all,

i'm quite new to the forex world and i have been demo trading for a month now, and i would like to go life. but i find news trading more profitable. i would like to know the tricks of news trading in the forex market. And i would like to know how to predict market movement ( ie either going long or short) based on forcast and previous figures relating to news events? pls i would like a detail explaination. thanks

Try using the "search" function my friend.

Besides, going live after a month is absolute madness.

Going live after a month to trade the news is financial suicide.

hello,

I am new in forum but also interested in Good news informations. I am using some free news from providers like Forex TV, CNBC Plus is also great but I think they are some seconds to late on web wersion. Where we can find infos about what the news can do to the market.

I would be careful news trading. If you are looking to trade during news spikes, it is highly likely that your live trading will be very different from demo trading.

When news hits, spreads spike and servers lock up. If you're trying to get in the second it hits, you won't make it. And you can't predict direction on news, you can never know if the news has already been factored into the price or not.

The only way I've ever made news profitable... and a risky profit at that, is to set both a buy and a sell stop order like 30 or 40 pips from the current high and low. If it takes off then my stop will get me in... otherwise no risk no loss, and best of all... no spread to pay. If you're going this route make sure you have a very narrow SL and TP set. It's basically a "take the money and run" situation. Just trying to make off w/ 30 pips before you get busted... =)

Frankly I think trading the rebound is a lot safer. Most of the news traders will be out by then so your spread will be smaller. You can use a trailing stop entry (ex: price goes down, you lower your buy stop to stay 20 or 30 pips ahead, repeat as needed) to catch the rebound when it comes back up. That way you're in as the trend reverses and have a chance. But that's where it gets trickier, as you have to pay attention to MAs, pivots, fibs, and anything that could be a support or resistance line.

I had a trailing stop set this morning and caught most of the GBPUSD rebound and about half of the GBPJPY rebound doing exactly this... but then again I was near the computer most of the morning and ready to manually close the trade if things went south. As always your mileage may vary and quite probably will... I have a live account I'm playing with (cash I can afford to lose), but I still test stuff in my demo first. You might want to spend more time in demo before trying anything.

As for a new source... I just go here:
http://www.forexfactory.com/calendar.php

And get most of what's needed.

you can trade news spikes, you can get in with some brokers, but u ideally need to get the numbers fast. I understand a bloomberg terminal is the fastest way.

What is likely to happen if and when you're in a position long before news is released and your SL or TP (whichever is triggered first) is hit during the wild market movements? Does slippage still come into play?

Definitely, your orders for TP or SL are not guaranteed to be filled under these conditions.
Anyway newbie here too, with regards to trading news. in my opinion the winners are those that have some of the fastest guns in the world and able to get their orders filled immediately, alot of retail investors are just sheep.
Well i came already came across a few threads accidently on trading news while browsing this forum

The pros stay out of the market during major news events, that is why the price jumps all over the place (lack of liquidity causes volatility.) There are so many variables possibly working against you during major news events that you'll eventually realize that it's best to just stay out of the market all together.

However, FF Calendar is a fine tool for getting past market reactions to past news events.

What I do is place a pending buy and sell order just before the news. I make each one about 10 pips away from the current price.

The buy stop loss is the same as the sell price and vise versa. Has been consistently working well for me.

can u provide some examples ? also what do you mean when you say buy price is the same as sell price ?

The problem with news trading that you can't see on demo is the real market liquidity.
When the market moves fast, you won't get filled with your orders on real live account or you will get huge slippage.