NEWS Trading or TECHNICAL Trading?

if you like to guess market direction and take leveraged bets then you should trade news.

On the other hand if you want to see clear view of market direction, and make investments you should go technical.

Here is why:

Market action discounts all fundamental news known OR NOT to the general public. That means that the BIG GUYS, investment banks, multibillion hedge funds etc, know these fundamental news before we do and place their positions accordingly. Technical analysis is looking for these movements and gives you the opportunity to tade in the same direction that they do. Understanding the fundamentals on the other hand will let you know that the price movement you saw ahead of the news is actually because of that news or if something more important will show up next. During the news announcement the market can go any direction but later will take the final decision.

So know how to read charts and understand where the big boys get in, or out, so you can be in their side. For me, finding if the movement was due to the news is of less importance since the chart will show if any positive or negative news are coming up.

After all though, is your decision but i'll say find out what technical analysis is and re-think it.

IF you are talking about fundamentals, then I am against it. We are talking about things like the strength or weakness of an economy. I guess you can profit this way but your sl will be huge and you will be looking at profits similar to a 401k. IF that's what you want then go for it.

However if you are talking about news trading then I am all for it. I have been trading the news for a few days (I know this isn't a big sample), and the results have been nothing less than phenomenal. I have had a few small losses, but my 2 big wins by far made up for this. Basically what I am doing is I put a limit order 10 pips in either direction 5 mins prior to the news announcement. Then as the price jumps around(if it isn't jumping then it probably isn't going to move) I adjust the price so it can be about 10 pips as the announcement comes. IF it doesn't hit one of my limits withing like 5 seconds then I delete them both. IF it hits one then I delete the other one. I pull up the 1 min chart. Typically there will be 1 pullback and a smaller continuation. Once I see price start to exhaust on the second run the I close my trade. I use limits because on the best trades, it tends to jump and honestly by the time my market order goes through I could have lost as much as 20 pips. I believe that these kinds of trades only happen maybe once a day or even maybe only 3-5 trades a week but being discipline could be the idea here. You know what they say? Less is better.

Hello!
I would like to try something similar. I will trade only most volatile news (NFP, FOMC, GDP, CPI, Trade balance, Interest rate, Employment, Retail sales,...) and pair with less or no spikes. I put buy/sellstop 10-15pips over/under price about 30-50sec before news release. There is no problem getting more then 30pips and with bigger lots good NFP (about 70-90pips) trade at the begining of the month is enough for me.
Question I have, what could be wrong with such way of trading?