How To Really Improve Your News Trading | Forex Factory

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How To Really Improve Your News Trading

  • #1
  • First Post: Sep 14, 2013 7:34am Sep 14, 2013 7:34am
Had to post this as I couldn't agree more - http://forexuseful.com/authors/forex...es-infographic

Are there actually any long term successful news traders - All I did was in my early days of trading was get burnt!
  • #2
  • Sep 14, 2013 8:13am Sep 14, 2013 8:13am
I always look for news events to trigger moves in line with an underlying fundamental bias, and make sure I am positioned accordingly before the release.

The basic principle is that a bull market will react more vigorously to positive news than to negative news, and a bear market will react more vigorously to negative news

It's very profitable if you know what you are doing, fortunately most people are too lazy or stupid (or both) to learn.
si hoc legere scis nimium eruditionis habes
  • #3
  • Sep 14, 2013 10:01pm Sep 14, 2013 10:01pm
Quoting numbnuts
The basic principle is that a bull market will react more vigorously to positive news than to negative news, and a bear market will react more vigorously to negative news
Absolutely logical. Additional forces. This is exactly like if you run ... wind in your back or in your face.
MT4/MT5 EAs/Indicators/Alerts coder
  • #4
  • Sep 15, 2013 12:18am Sep 15, 2013 12:18am
News trading is totally silly. For so many reasons. You absolutely can NOT win with trading the news. The charts will speak WELL before the news. Anyone who tells you otherwise is just wrong.
There's always money in the banana stand.
  • #5
  • Sep 15, 2013 2:30am Sep 15, 2013 2:30am
Quoting LizardGizzard
News trading is totally silly. For so many reasons. You absolutely can NOT win with trading the news. The charts will speak WELL before the news. Anyone who tells you otherwise is just wrong.
Totally agree - Do you know any long term profitable forex news trader - NO - BECAUSE THERE ARE NONE - ITS ABSOLUTE NONSENSE
  • #6
  • Sep 15, 2013 2:49am Sep 15, 2013 2:49am
Quoting wilczek
{quote} Totally agree - Do you know any long term profitable forex news trader - NO - BECAUSE THERE ARE NONE - ITS ABSOLUTE NONSENSE
There are few private clubs which are fully devoted to news trading ... and they are consistently profitable since many years.
MT4/MT5 EAs/Indicators/Alerts coder
  • #7
  • Sep 15, 2013 4:47am Sep 15, 2013 4:47am
a few private clubs - a few million traders - ok - sorry - perhaps 1 in a million can be consistently profitable trading news
  • #8
  • Sep 15, 2013 4:53am Sep 15, 2013 4:53am
Quoting wilczek
a few private clubs - a few million traders - ok - sorry - perhaps 1 in a million can be consistently profitable trading news
It's not because you can't be profitable trading news that it isn't possible ...

It's like if a trader with no success scalping say that scalping profitably isn't possible.
MT4/MT5 EAs/Indicators/Alerts coder
  • #9
  • Sep 15, 2013 4:57am Sep 15, 2013 4:57am
Quoting wilczek
{quote} Totally agree - Do you know any long term profitable forex news trader - NO - BECAUSE THERE ARE NONE - ITS ABSOLUTE NONSENSE
there is plenty, they are just not bothered to prove anything to online crowd. Most retail traders hate fundamental/news driven trading because they have a minimum knowledge about market mechanics so they use all tech stuff as an excuse. I.e
do you know how bond market relate to dollar strenght/weakness? can you explain how money flow by looking at the market?
no?
then do not trash the method, try to improve.Have a fundamental bias and enter your trade using tech, do not discard one or another.
swing it!
  • #10
  • Sep 15, 2013 5:04am Sep 15, 2013 5:04am
Quoting tomspin
there is plenty, they are just not bothered to prove anything to online crowd. Most retail traders hate fundamental/news driven trading because they have a minimum knowledge about market mechanics so they use all tech stuff as an excuse.
MT4/MT5 EAs/Indicators/Alerts coder
  • #11
  • Sep 15, 2013 5:19am Sep 15, 2013 5:19am
news trading is great but not for beginner. At least me, wait for the news, wait for the reaction and observe reaction. this gives me a clue whether to go with the news or against. and put on a trade if odds skewed enough.

Good thing is that one does not need charts at all for this type of trading.
  • #12
  • Sep 15, 2013 5:28am Sep 15, 2013 5:28am
Quoting tomspin
{quote} there is plenty, they are just not bothered to prove anything to online crowd. Most retail traders hate fundamental/news driven trading because they have a minimum knowledge about market mechanics so they use all tech stuff as an excuse. I.e do you know how bond market relate to dollar strenght/weakness? can you explain how money flow by looking at the market? no? then do not trash the method, try to improve.Have a fundamental bias and enter your trade using tech, do not discard one or another.
LOL

Challenge - Ask a news trader to post their trades live before the event for a year - you will not find one willing to do so - not one - I am just saying that there are no long term profitable news traders - perhaps a few - ever read about a news trader in market wizards ?
  • #13
  • Sep 15, 2013 5:31am Sep 15, 2013 5:31am
Quoting seaman2
news trading is great but not for beginner. At least me, wait for the news, wait for the reaction and observe reaction. this gives me a clue whether to go with the news or against. and put on a trade if odds skewed enough. Good thing is that one does not need charts at all for this type of trading.
good point, if tommorow fed end zirp, you can throw away chart, you just buy, but if you are late you wait for retracement (TA)then you buy. See there is equalibrium in everything
swing it!
  • #14
  • Sep 15, 2013 5:38am Sep 15, 2013 5:38am
Quoting wilczek
{quote} LOL Challenge - Ask a news trader to post their trades live before the event for a year - you will not find one willing to do so - not one - I am just saying that there are no long term profitable news traders - perhaps a few - ever read about a news trader in market wizards ?
challenge why last sunday open wti droped few bucks, and why yen has strenghten after olimpic news and didn't respect 50% retracement?
ps the answer cannot be found in that book.
swing it!
  • #15
  • Oct 18, 2013 7:48am Oct 18, 2013 7:48am
I have been experimenting with different trading strategies for a couple of years, and since I retired and have more time I am experimenting with trading the news. I am a psychologist and put a lot of faith in what the medical profession calls 'evidence-based practice'. In other words, if a system works then show me the evidence. I therefore have a suggestion to make in order to answer the question 'does news trading work'? Show me the evidence in actual trades taken and presented for analysis. I have set up a demo account explorer which allows anyone to see my experimental trades, and I am happy to discuss news trading techniques that are grounded in evidence that can be seen, rather than discussing the theories and past failures. Is there anyone else out there who trades the news who is willing to share their explorer results for discussion with a view to improving our profitability?
Tellboy
  • #16
  • Oct 18, 2013 8:54am Oct 18, 2013 8:54am
with business event, I am sure that everyone ever noticed that a good event, but contrary to the facts, price remount. I realized an obvious thing, event reduces the time of taking the business to profitability, issue your technical analysis like. not a big event sure to bring in many PIP. high rate ended up moving near S / R
Trading in the zone
  • #17
  • Oct 18, 2013 3:59pm Oct 18, 2013 3:59pm
news is manipulation.
wo-yoy! wo-yoy! wo-yoy! wo-yoi! wo-yoy-yoy-yoy!
  • #18
  • Oct 20, 2013 7:53am Oct 20, 2013 7:53am
Quoting wilczek
{quote} LOL Challenge - Ask a news trader to post their trades live before the event for a year - you will not find one willing to do so - not one - I am just saying that there are no long term profitable news traders - perhaps a few - ever read about a news trader in market wizards ?
I just stumbled across this thread and, in particular, this post. It is a rather silly challenge, is it not? A news trader, by definition, trades the news. How will a news trader post live trades BEFORE a news event even takes place? It is not so much that news traders are not willing to post up trade examples before the fact as much as it is impossible to do so!
  • #19
  • Oct 20, 2013 8:26am Oct 20, 2013 8:26am
I agree. It is a silly challenge. However, I do believe that if a news trader is successful then his/her trades could be shared with those of us who would learn from them. I am testing Henry Liu's news trading EA alongside a manual pre-news sentiment strategy, and I have set up a thread that offers such an invitation. I am a newbie and still learning, so guidance would be appreciated.
Tellboy
  • #20
  • Oct 20, 2013 8:37am Oct 20, 2013 8:37am
Quoting tellboy
I agree. It is a silly challenge. However, I do believe that if a news trader is successful then his/her trades could be shared with those of us who would learn from them. I am testing Henry Liu's news trading EA alongside a manual pre-news sentiment strategy, and I have set up a thread that offers such an invitation. I am a newbie and still learning, so guidance would be appreciated.
Traders avoid hour news release. news can take you to profit or kill you. judging a very difficult news, if you are trader fundamental analysis, your trade goes very long. information to price fluctuations in a short period of time and the price will move back to the basics.
Trading in the zone
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