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How do you trade news?

  • #181
  • Jul 19, 2006 12:08am Jul 19, 2006 12:08am
Quoting jlowder
Did you manage to pull anything out of that lousy PPI? This was one of the major news events you trade, right?

If you did actually turn a profit, could you explain your steps?

Thanks.

J
yes. me too, I am dying to know...how...I was too tired watching the market back and forth, eventually, missed the trade...
  • #182
  • Jul 19, 2006 12:47am Jul 19, 2006 12:47am
hi all...im newbie...im try to practice trade the news with this method. Please give me an advice.

wher ever the news want to bring the price:

1- 20-30 munites before news release, place a buy & sell stop about 20-30pips from the current price.
2- Set lot to 0.1 (or 1.00 depend to yur deposit), stop loss 40pips, take profit 100pips, trailing stop 10pips.
3- Let news bring the market go and close the opposite trade.
4- u may close the wright direction at 70-80% profit. Up to u...dont be greed.

thanks,

candlepower.

*
pardon for my poor english...im malaysian
  • #183
  • Jul 19, 2006 2:42am Jul 19, 2006 2:42am
My trade plan requires more execution and discipline then knowing when to get in and out. It takes skill to enter your trades at the right time prior to an announcement in order to avoid (or at least minimize) last second spikes. If you've done your homework, you can be reasonably certain that the market will move in one direction or the other. Either way it moves, your straddle or hedge will catch it. That, to me, is not gambling.

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Money Ma$ter

I was wondering if you could show your steps how you execute your successful trades. What are the preparations require before placing your trades? What is your trading plan? Do you have a few examples for your past trade? Could be future too?

I understand it took many years of trading experiences to be where you at today. 80% successful rate is an awesome number. However, if you decided to hold reservation in sharing your knowledge, it is OK.

An entrepreneur with businesses in the states and overseas, time is the key scarce factor in life. Therefore, I would much rather has someone lead me through the mine field and show me a proven process.
  • #184
  • Jul 19, 2006 8:23am Jul 19, 2006 8:23am
Quoting tradersmile
Money Ma$ter

I was wondering if you could show your steps how you execute your successful trades. What are the preparations require before placing your trades? What is your trading plan? Do you have a few examples for your past trade? .
Tradersmile,

Please see my post in this thread dated 7/17/06.
  • #185
  • Jul 19, 2006 8:41am Jul 19, 2006 8:41am
Quoting sovo1970
yes. me too, I am dying to know...how...I was too tired watching the market back and forth, eventually, missed the trade...
Hey J (and others)

The GOOD

As always, I straddled GBP/USD, watched it go short, news came out, short continued triggered my entry, and watched the profits grow. Not a fast push but trending short nicely.

The BAD

I was cancelling the long position when the trend began reversing....that's when it got ugly.

THE UGLY!!!

GBP/USD turned long, which didn't make sense to me. Since I was up and had a 25 pip stop loss built in, I decided to let it ride, thinking it was a brief correction and that the trend would continue down. Can you say WRONG Money Master!?!!!

I've shared my success with you; I can share the not so successful side also: PPI cost me $16,000 (that's cash, deniro, live, real money...not paper). Also, since I trade news, I did not participate in the later fall of cable because that's more akin to trading. My plan says there's always another trade not far away.

In contrast today's CPI sent GBP/USD short as expected in light of fundamental analysis, there was a momentary correction (just like I expected yesterday), but the difference was today the pair continued down to around 1.8230 (I entered short at 1.8265).

Some would consider the PPI results a loss; i consider it as a
Learning Opportunity; See Success

In other words, no matter what happens in your trading experiences always, always, always, take the good out of it and hold on to it, build on it and move on. This business demands not only a sound trading strategy but also a sound frame of mind geared toward positive outcomes.

Just information; not a recommendation.
  • #186
  • Jul 19, 2006 9:29am Jul 19, 2006 9:29am
Quoting CandlePower
hi all...im newbie...im try to practice trade the news with this method. Please give me an advice.

wher ever the news want to bring the price:

1- 20-30 munites before news release, place a buy & sell stop about 20-30pips from the current price.
2- Set lot to 0.1 (or 1.00 depend to yur deposit), stop loss 40pips, take profit 100pips, trailing stop 10pips.
3- Let news bring the market go and close the opposite trade.
4- u may close the wright direction at 70-80% profit. Up to u...dont be greed.
In this thread there are a lot of these systems mentioned. Your system could also work, but surely you should try it out first and fiddle around with the values. An example, why not 10 minutes for the newsrelease and less pips from the current price. Or stoplosses and take profits lower. Or something else you can change. Etc. etc.
  • #187
  • Jul 19, 2006 9:38am Jul 19, 2006 9:38am
Quoting jlowder
Thank you. This is the kind of information I'm looking for. While I'm all for research, I prefer to take my lead from someone who is actually MAKING money in the markets. I
Thanks for the info. It's greatly appreciated.

Jason
J

Please tell me you applied this information to Bernanke's comments this morning as cable moved in excess of 100 points.
  • #188
  • Jul 19, 2006 9:53am Jul 19, 2006 9:53am
Quoting MoneyMa$ter
J

Please tell me you applied this information to Bernanke's comments this morning as cable moved in excess of 100 points.
If I were trading live right now I would be seriously p'd off. I was getting ready for work. This made it VERY clear that I need to pay careful attention to the calendar each day. I managed to pull like 20 pips out earlier (using both cable and EUR/USD).

I saw a large spike to either direction - what pip range did you use for entries on this baby? Hope this made your 16k back and some . :-)

Jason
  • #189
  • Jul 19, 2006 10:19am Jul 19, 2006 10:19am
Quoting jlowder
If I were trading live right now I would be seriously p'd off. I was getting ready for work. This made it VERY clear that I need to pay careful attention to the calendar each day. I managed to pull like 20 pips out earlier (using both cable and EUR/USD).

I saw a large spike to either direction - what pip range did you use for entries on this baby? Hope this made your 16k back and some . :-)

Jason
Wind is not the one who's moving the market. Major economic/political/social events moves the market, you can't ignore them, especially when you have everything one click away.
Try hard, think fast, die young
  • #190
  • Jul 19, 2006 12:11pm Jul 19, 2006 12:11pm
It's a combination of things that are moving the market, but they do seem to work to various technical rules. The main one seems to be the Framework that I discovered. I knew yesterday where the GBP was going, because it was fitting exactly to a particular part of the framework. I can post a chart if you like.
The framework is there; we just have to work on our frame of mind.
  • #191
  • Jul 19, 2006 1:28pm Jul 19, 2006 1:28pm
Quoting niceguy777
It's a combination of things that are moving the market, but they do seem to work to various technical rules. The main one seems to be the Framework that I discovered. I knew yesterday where the GBP was going, because it was fitting exactly to a particular part of the framework. I can post a chart if you like.
Yes, I would like to see it...

Jason
  • #192
  • Jul 19, 2006 2:22pm Jul 19, 2006 2:22pm
Hey MoneyMaster,

This is my first post on FF and I've only been involved in currency trading for 3 months now. I'm currently on holidays (ahh!) and I've been paper trading to become more familiar and develop my trading plan/strategy.

I quite like the idea of trading news (as well as not being fond of TA) as it might give me a chance to trade while I study/work, I don't aim to make currency trading a full-time job but it appeals to me as an investment.
Do you or anybody know where I can read up on the straddle technique/entry you've mentioned (perhaps a thread on FF), or if you don't mind going over your method?

Also, do you rely on streaming news to obtain the data or does this straddle technique allow for a movement in any direction?

Just one last thing, you mentioned you don't trade EUR/USD due to correlation issues, are you referring to currency/oil/gold correlations?

Thanks buddy,
Carlos
  • #193
  • Jul 19, 2006 7:21pm Jul 19, 2006 7:21pm
Quoting niceguy777
It's a combination of things that are moving the market, but they do seem to work to various technical rules. The main one seems to be the Framework that I discovered. I knew yesterday where the GBP was going, because it was fitting exactly to a particular part of the framework. I can post a chart if you like.
Yes Sir,
appreciated if u can show us.
  • #194
  • Jul 19, 2006 7:23pm Jul 19, 2006 7:23pm
Quoting CandlePower
hi all...im newbie...im try to practice trade the news with this method. Please give me an advice.

wher ever the news want to bring the price:

1- 20-30 munites before news release, place a buy & sell stop about 20-30pips from the current price.
2- Set lot to 0.1 (or 1.00 depend to yur deposit), stop loss 40pips, take profit 100pips, trailing stop 10pips.
3- Let news bring the market go and close the opposite trade.
4- u may close the wright direction at 70-80% profit. Up to u...dont be greed.

thanks,

candlepower.

*
pardon for my poor english...im malaysian
good statergy anyway.... any success story?
  • #195
  • Jul 19, 2006 7:53pm Jul 19, 2006 7:53pm
I think that 20-30 minutes before the news is too soon to put an order. I put orders 5-10 minutes before, sometimes maybe less. It worked good so far.
Try hard, think fast, die young
  • #196
  • Jul 19, 2006 10:47pm Jul 19, 2006 10:47pm
Quoting dof
I think that 20-30 minutes before the news is too soon to put an order. I put orders 5-10 minutes before, sometimes maybe less. It worked good so far.
yes its too soon..im sorry..i catch a signal from forexofftrend indicator at 1 munite timeframe yesterday 6 munite before the news release...very good opportunity & it spike about 100 pips for the 4 major pair...forget the technic before...heheh

thanks

candlepower
  • #197
  • Jul 20, 2006 7:45am Jul 20, 2006 7:45am
Hello

AnyIdea about Bernanke Testifies to Senate AVG. PIP MOVE ?
Charting Markets into the Future...MǎҖ€¥.
  • #198
  • Jul 20, 2006 8:08am Jul 20, 2006 8:08am
Quoting jcsmesquita
Hey MoneyMaster,

Do you or anybody know where I can read up on the straddle technique/entry you've mentioned (perhaps a thread on FF), or if you don't mind going over your method?

Also, do you rely on streaming news to obtain the data or does this straddle technique allow for a movement in any direction?

Just one last thing, you mentioned you don't trade EUR/USD due to correlation issues, are you referring to currency/oil/gold correlations?

Thanks buddy,
Carlos
Hey Carlos,

See my post in the forum dated July 17, 2006. I believe it's in this thread and it explains my method and how I derived it.

Yes the technique allows for movement in any direction.

As to your question regarding EUR/USD, someone asked me whether I traded related currency pairs. I don't. Why buy 2 lots, one for cable and the other Euro? One reason may be if you're long in one and short on the other, as a hedge of sorts. But no I don't do that. Mathematically, there is a correlation between currency pairs that tend, to some degree, to move in the same direction more often than not.

"The correlation coefficient show the moves similarity between pairs. If the correlation is high (above 80) and positive then the currencies move in the same way. If the correlation is high (above 80) and negative then the currencies move in the opposite way. If the correlation is low (below 60) then the currencies don't move in the same way." Further information as well as the table showing currency relationships can be found at

http://www.mataf.net/en/analysis-correlation.htm

Just information; not a recommendation.
  • #199
  • Jul 20, 2006 8:21am Jul 20, 2006 8:21am
Quoting jlowder
If I were trading live right now I would be seriously p'd off. I was getting ready for work. This made it VERY clear that I need to pay careful attention to the calendar each day. I managed to pull like 20 pips out earlier (using both cable and EUR/USD).
Jason
Hey J,

Good to know you made some pips man. You live to trade another day. By the way, use multiple websites for economic news announcements AND revisit those sites as events get added or times change during the week.

Not sure if I mentioned it, but the press receives published copies of speeches just in advance of the speaker taking the podium. So if Bernanke speaks at 10:00 eastern, his staff disseminates copies probably around 9:59:30 (if not slightly sooner).

Just information; not a recommendation.
  • #200
  • Jul 20, 2006 8:47am Jul 20, 2006 8:47am
Quoting MoneyMa$ter
I've shared my success with you; I can share the not so successful side also: PPI cost me $16,000 (that's cash, deniro, live, real money...not paper).
Oh, ok. That explains it. I was wondering why my big win of the week seemed pretty easy...

Oh no he didn't! :surprised
Mr. Trend
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