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Do you check news all day?

  • #1
  • First Post: Aug 30, 2012 11:11am Aug 30, 2012 11:11am
I wonder if people who are doing a LIVING OFF FOREX (at least 5K per month) check NEWS all day and base a lot of their decissions on NEWS?..

Sometimes I hear people trade exclusivelly watching the graphics and they hardly check any news to start a trade.. Is that really possible?

I'm not really talking about "trading by news".. Just wondering if you take NEWS into consideration and what kind of analysis you apply to news, because sometimes a number doesn't say anything.. For example the same number of UNEMPLOYMENT, can sometimes take the currency UP and other times DOWN.. So, its quite a lottery.
The Black Swan: The Impact of the Highly Improbable
  • #2
  • Aug 30, 2012 12:27pm Aug 30, 2012 12:27pm
yes. forex news for entertainment only because I have no life and I need a real job.
  • #3
  • Aug 30, 2012 12:53pm Aug 30, 2012 12:53pm
Quoting MapleLeaf
I wonder if people who are doing a LIVING OFF FOREX (at least 5K per month) check NEWS all day and base a lot of their decissions on NEWS?..

Sometimes I hear people trade exclusivelly watching the graphics and they hardly check any news to start a trade.. Is that really possible?

I'm not really talking about "trading by news".. Just wondering if you take NEWS into consideration and what kind of analysis you apply to news, because sometimes a number doesn't say anything.. For example the same number of UNEMPLOYMENT, can sometimes take the currency...
Like everything it takes skills to determine which news are important at which point in time.
There are a handful of events per year that actually set up a nice move of a couple of hundreds to thousands of pips. But one has to apply one's common sense and analysis of the situation to be able to spot those. Just taking random news events won't cut it.

However, reading news all day is just a waste of time in my opinion. The important ones that really get things going will be all over the newspaper and TV. But of course it depends on your time-frame.
  • #4
  • Aug 30, 2012 1:06pm Aug 30, 2012 1:06pm
Quoting Custos
Like everything it takes skills to determine which news are important at which point in time.
There are a handful of events per year that actually set up a nice move of a couple of hundreds to thousands of pips. But one has to apply one's common sense and analysis of the situation to be able to spot those. Just taking random news events won't cut it.

However, reading news all day is just a waste of time in my opinion. The important ones that really get things going will be all over the newspaper and TV. But of course it depends on your time-frame....
Ok, so you trade only watching the Graphics and hardly check news?

News don't really matter for the average Trader? (of course excluding the big news you are talking about)..

I see ForexFacotry put news every day in main page, I wonder who use those.. and if they can trade using those news.. I have been following these, and sometimes the same indicator or percentage drives the currency up and other times down, or just dont move it all, its like a lottery, really.
The Black Swan: The Impact of the Highly Improbable
  • #5
  • Edited 1:26pm Aug 30, 2012 1:14pm | Edited 1:26pm
Quoting MapleLeaf
Ok, so you trade only watching the Graphics and hardly check news?

News don't really matter for the average Trader? (of course excluding the big news you are talking about)..

I see ForexFacotry put news every day in main page, I wonder who use those.. and if they can trade using those news.. I have been following these, and sometimes the same indicator or percentage drives the currency up and other times down, or just dont move it all, its like a lottery, really.
It depends how you want your life to be. You wanna sit in front of the computer all day and become a scalper? Then checking the news every day might be a good idea. I personally don't want that and enjoy my day, so I put on a couple of trades based on technical setups and go in larger when there is a technical setup coupled with some really big news.
  • #6
  • Aug 30, 2012 2:08pm Aug 30, 2012 2:08pm
I think that it is a good idea to have a bit of both. You don't want to spend all your time and energy on reading news that may not even be relevant to your trading, but it is also important to know what is going on in the business world to be able to make some decisions. As mentioned previously, it is important to know which news story's are pertinent and which are not.
  • #7
  • Aug 30, 2012 4:37pm Aug 30, 2012 4:37pm
ROFL. If it makes you feel better, you're not alone in the no life club A real job?? No, that's for losers!! Winners make a living off forex, doubling the account every month.

Quoting Mingary
yes. forex news for entertainment only because I have no life and I need a real job.
forget about tomorrow, just steal away into the night
  • #8
  • Aug 30, 2012 5:43pm Aug 30, 2012 5:43pm
I don't ever check the news. I'm one of those guys who subscribes to that whole "news is always leaked and built into the charts prior to its release" line of thinking.
  • #9
  • Aug 30, 2012 6:43pm Aug 30, 2012 6:43pm
Quoting spekitox
ROFL. If it makes you feel better, you're not alone in the no life club A real job?? No, that's for losers!! Winners make a living off forex, doubling the account every month.
You are doubling the account every month??...

What's your secret?

A mentor told you the secrets?

Try to share some, dude. Most people here don't want to double the account, Im sure they will be happy even with a 5% per month..

Damn.. even a 2% constant per month would be awesome...
The Black Swan: The Impact of the Highly Improbable
  • #10
  • Aug 30, 2012 7:31pm Aug 30, 2012 7:31pm
Mapleleaf...there are tons of systems out there that will give 5-10% per month. The question is whether or not the trader can work the system the way it is suppose to be worked in order to realize those gains.

I'll give you one that I was thinking of throwing up on the systems section...but people would probably not want to bother listening to me as I don't have a proven track record here. But this one will work anyway.

We'll call it "Genesis Plus".

Go to the systems section and download the "Genesis System Matrix" indicator. Plug it into a clean chart free from everything else. No trendlines, no grid, no nothing but the regular Japanese candles and the Genesis indicator.

You trade on the E/U pair from one hour before London open until four hours after NY open. Your last opportunity to enter a trade comes at 12:05pm when the noon candle closes.

Once your trading day starts, you start looking for all the indicator lights on the Genesis Matrix to either line up red or blue (I change the colors so that blue means go long, and red means go short) at the end of a candle. You gotta wait for the candle to close. The indicator repaints like mad...but that doesn't matter.

Stop loss is 10-12 pips. Take profit is "kinda" 20-24 pips. That's a 2-to-1 reward to risk ratio. Really, you just set a trailing stop to kick in two or three pips below the market price one that price hits 20 pips worth of profit....then ride it up. Most winners will balance out to about 2R profit.

Have your trade manager bring your stop loss to break even once the trade is 10 pips in profit.

As to what type of lot size you want to use...you're going to have to be a bit more aggressive if you want to see real growth. Use a stairstep money management plan like the one laid out in the 1st post of the Symphony System thread. If that's too aggressive for you, just cut the lot sizes in half for each level.

If you catch a "big move", feel free to buy (or sell) a second position only after the first one has a candle that CLOSES BEYOND the R2 profit mark. If the second one hits its own 2R profit mark, feel free to open a 3rd position. Stop when one of the trades either checks out at break even (because it went up 10 pips and then came back down) or just straight out moves against you and takes out your stop. Sometimes I was able to catch 4 of these in a row. Never five though. Also...the KEY detail in this is that there can be NO opposing candles between the time a position is opened and the time it reaches the 2R point if you are going to open an additional position.

So far, this system seems to be churning out about 333 trades per month (some less, some more) in strategy tester. If you remove the break even trades, it has about a 36% win ratio. If you took an average risk of $25 on a $1000 account and won an average of $50 when things went your way, the math works like this:

98.5 Wins x 50 = $4925
175 Losses x 25 = $4375

Profit ~ $550 on a $1,000 account.

If you wanted to be more conservative and assume that 1/2 of that profit is eaten up by commission....then you'd only have a 25% profit for the month.

Anyway...you wanted some example of a real way to grow an account at a rate higher than 5%. You can probably take this and tweak it. Know that the profits would be higher if you upped the max risk from 2.5% (that's the $25 bet) to a full 5% once you grow the account to a certain level where you can withstand the drawdown of a really bad run.

This type of system isn't for everyone. It requires a 50+ hour per week commitment. It also requires you to be able to stomach some serious loosing streaks. One month, the system tore off on a loosing streak of 10 losses in a row on Day #1 for the month! Then it took two wins and took another 11 losses on Day #2 followed by another single win and another 3 loss streak. Things got a bit more normal after that and the win ratio pulled up to that .36 level by the 23rd of the month...but, like I said...if you can't take those types of beatings on a monthly basis...this might not be the system for you.
  • #11
  • Aug 31, 2012 12:28am Aug 31, 2012 12:28am
Quoting spekitox
ROFL. If it makes you feel better, you're not alone in the no life club A real job?? No, that's for losers!! Winners make a living off forex, doubling the account every month.
So you like to sarcasm just like me. Yes I do like to use irony to mock or convey contempt
  • #12
  • Aug 31, 2012 12:33am Aug 31, 2012 12:33am
Quoting FXAssassin
Mapleleaf...there are tons of systems out there that will give 5-10% per month. The question is whether or not the trader can work the system the way it is suppose to be worked in order to realize those gains.

I'll give you one that I was thinking of throwing up on the systems section...but people would probably not want to bother listening to me as I don't have a proven track record here. But this one will work anyway.

We'll call it "Genesis Plus".

Go to the systems section and download the "Genesis System Matrix" indicator. Plug it into...
There are not tons of systems that give 5 to 10% a month. Have backtested now 200 systems and only found 5 that are actually worth trading.
  • #13
  • Aug 31, 2012 2:17am Aug 31, 2012 2:17am
Quoting Custos
There are not tons of systems that give 5 to 10% a month. Have backtested now 200 systems and only found 5 that are actually worth trading.
Well, and here comes the part where I ask...

what are the... arghhh.. forget it...

I will let others ask this time...

can't be always the same person asking, there are tons of lurkers here, get involved people. And ask.. I cant be the one asking for everyone here..
The Black Swan: The Impact of the Highly Improbable
  • #14
  • Aug 31, 2012 2:22am Aug 31, 2012 2:22am
Quoting FXAssassin
Mapleleaf...there are tons of systems out there that will give 5-10% per month. The question is whether or not the trader can work the system the way it is suppose to be worked in order to realize those gains.

I'll give you one that I was thinking of throwing up on the systems section...but people would probably not want to bother listening to me as I don't have a proven track record here. But this one will work anyway.

We'll call it "Genesis Plus".

Go to the systems section and download the "Genesis System Matrix" indicator. Plug it into...

thanks for the long explanation and you are right that system is not for everyone.

but still thank you for that, man, gonna play with it in demo. Appreciated.
The Black Swan: The Impact of the Highly Improbable
  • #15
  • Aug 31, 2012 2:32am Aug 31, 2012 2:32am
Traders need volatility. Often news announcements provide volatility. Retail traders might not care about the news, but most professional traders are watching the announcements. Now this is not to say that they are trading on fundamentals per se.

If one is a technical trader and you are waiting for a set-up and a news announcement provides the move into your set-up, then that is one of the best times to trade. It is trades at these times that will often take off and never look back.

I believe that you should always know the major announcements for the day. Mark them on your chart with a vertical line (if it's at 8:00 EST, then put the line at that time). Then trade away.
  • #16
  • Aug 31, 2012 6:37am Aug 31, 2012 6:37am
Mingary is right, it was just irony; sorry if I made the impression of being a winner or doubling my account every month, making a living off forex or having a life.

Truth is, I am too, very happy with single figure gains a month, if, if I get anything.

Quoting MapleLeaf
You are doubling the account every month??...
forget about tomorrow, just steal away into the night
  • #17
  • Aug 31, 2012 12:39pm Aug 31, 2012 12:39pm
As i understand the market right now i think it's purely preference.

When you see news you get an idea (not necessarily indicative of reality) and you act based on this idea.

But,it's possible to find the same idea(again,not necessarily correct)in other ways (looking at charts or indicators).

Watching news is useful only if you have a way to extract the truth from them, but the same truth can be found elsewhere.
In the end the market can only go 2 directions,you just have to go the same direction as him.
(edit: i'm not clearing 5k right now, factor that in if you want)
  • #18
  • Aug 31, 2012 3:16pm Aug 31, 2012 3:16pm
Quoting Dopey
Traders need volatility. Often news announcements provide volatility. Retail traders might not care about the news, but most professional traders are watching the announcements. Now this is not to say that they are trading on fundamentals per se.

If one is a technical trader and you are waiting for a set-up and a news announcement provides the move into your set-up, then that is one of the best times to trade. It is trades at these times that will often take off and never look back.

I believe that you should always know the major announcements...
Thanks for that one. Will definitely implement it.
The Black Swan: The Impact of the Highly Improbable
  • #19
  • Aug 31, 2012 3:18pm Aug 31, 2012 3:18pm
Quoting kiadanai
As i understand the market right now i think it's purely preference.

When you see news you get an idea (not necessarily indicative of reality) and you act based on this idea.

But,it's possible to find the same idea(again,not necessarily correct)in other ways (looking at charts or indicators).

Watching news is useful only if you have a way to extract the truth from them, but the same truth can be found elsewhere.
In the end the market can only go 2 directions,you just have to go the same direction as him.
(edit: i'm not clearing 5k right now,...
true man.. only two directions.. i always wonder why everyone say: "Trade with the trend", like its something anyone can see..

each person sees something different, if everyone could see the true trend, then everyone could do a living off this.

and the trend changes completely based on Time Frame and such things.

hehe, you are only doing 2K per month? More than 95% of traders.
The Black Swan: The Impact of the Highly Improbable
  • #20
  • Aug 31, 2012 8:50pm Aug 31, 2012 8:50pm
once a day at least, trying to make it a mornining routing now that i've started working
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