How do you trade news?

Quoting thehun

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Money Master,

Thanks for all of your posts, you've really given me quite a few things to think about. I'm a technical analyst at heart and to be honest don't think very much about fundamentalists. But after reading some of your stuff and the " I make more money in 5-8 minutes than most do in a year" comment...dude I like your style..and maybe..just maybe come to the dard side of the force and start bringing fundamental analysis into my bag of tricks.

A couple of questions:

1)how much percentage of capital are you putting up on each trade? What is your risk management philosophy? At the end of the day, it doesn't matter whether you trade on technical analysis, fundamental analysis or whatever, the real key is about managing your bankroll

2) I work, so unfortunately I can't trade the US or Canadian news because I don't have the platform on the computer I work on, and simply put, even if I could, it would just be a baaaaaaaaaad idea. I know most people here are trading the US news...do you or does anyone reading this trade off of Japanese news or British news and what kind of success have you found there...

Keep up the posts! It's nice to have people who do make money share their philosophy....the only way to be a winner..is to learn from one....


The Hun.

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Quoting tradersmile

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I got 14 pips on CA Retail Sales this morning (live account), right before the news release, USD/CAD went up 27 pips and once the news released, it went up another 28 pips. It happened too fast. How do you place your trade right before the news release? What site(s) do you monitor to obtain the live news info? <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /><o></o>

The past week I placed six trades (live account) based on news along with T/A, all six trades were positive return.

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Quoting jpeg3

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Money monster

i am a new trader only about 4-5 months trading just opened a real account about 1 month agao try to news trade but keep missing the spikes and the spread is hard to overcome doing news time. do you have any stratergies you think i might be able to use to fix this or should i just go back to demo for a whils?

Thanks and God Bless

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Quoting MoneyMon$ter

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Money Mon$ter..... does have a certain ring to it.

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Quoting Mr Trend

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Is that what we're calling ATMs these days?

:surprised (Oh no he didn't! Oh yes I DID!)

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Quoting MoneyMa$ter

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Money Mon$ter.....mmmm..... I like that!!! Thanks for the blessing.

If you're refering to me, I go by the name of Money Ma$ter...... not Mon$ter.... Ma$ter. But it's growing on me.

You should demo for a while unless you're making money already. Also read this forum because there's tons and tons of practical information on everything, including brokers. And maybe newstrading isn't for you. Maybe your strength lies in technical analysis, pivot point strategies or some other trading model.

By the way, what broker do you currently use??

Money Mon$ter..... does have a certain ring to it.

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Quoting jpeg3

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With the news i know hwere it is going during release, depending on the report numbers just can't get in in time.

Thanks Again
Blessings to you MM

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Quoting summitfx

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Carlos,


Are you going to share your research results on the Top News to trade. Just interested in what you found?

Thanks-

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Quoting MoneyMa$ter

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Hi Hun!!!

(Just couldn't resist lol)...

Anyway, thanks for the comments.

Second question first. I don't trade the Asian and European sessions for one practical reason: I'm on the east coast and my body enjoys sleeping at night!! And I'm well aware of the cable's nightly move overnight, roughly in the vicinity of 100 points. Insomniacs on the east coast could make a million of that move!!!

First question. What I'm about to share is FX heresy so let me preface it. I have absolute confidence in my trading system. It was developed over time with many long nights and with God as my partner. It works. Period. Now have a seat, send the kids to bed...here comes the heresy. I've traded as much as 80% of my equity using leverage as high as 400:1. I told you this is not for the kiddies and by no means is this a recommendation. Remember: I have absolute confidence in my system.

While I believe money ma$tering or money management is instrumental, I also believe traders must develop a disciplined, personal trading system based on their personal goals and characteristics, a trading system that consistently produces positive pips......

I don't care if it's just 10 pips a trade. If you can consistently produce 10 pips, two or three times a week consistently, you will make money. When you know your system can consistently do this, why wouldn't you move to higher leveraged trades?

One reason you won't is because of the traders creed: "Thou shalt not risk more than 2 - 3 - 5% of thy equity" ....and that's prudent. But if most retail traders in this business actually lose money, why continue doing what most traders do? (no one's answered that question yet). The definition of insanity is continuing to do the same thing while expecting a different outcome. But I digress.

Back to my example of 10 pips a trade two or three times a week. For standard lots, that equates to $200 -$300 per week, not exactly minimum wage. But the point is you consistently do it. Reinvest and trade standard lots as soon as you can. Five lots will yield $1000 to $1500 per week or $4,000 - $6,000 monthly (pre-tax profit). Again the key is your system consistently produces pips and therein lies the profit potential. C'mon folks, get out of the boat; you can walk on water!!! Fear not, only believe. If you don't believe in your system, what's the point? Why on earth would you be in this business?

Nuf said.

Just information; not a recommendation.

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Quoting BillGates

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I got this EA from a friend. I think it is based on channel breakout. I don't know how good this EA in handling news because I've never tested it.

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Quoting jcsmesquita

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Hey summitfx, Sure, the "Top news to trade" my results suggest are: - US Bernanke testimonies to Senate.- US Consumer Sentiment (coming up this friday).- US Nonfarm Employment.- E-12 ECB Interest rate announcement.- US New Home Sales (coming up this thursday).- US Retail sales. I intend to collect data every week from now on to build up my research, this should help me make more comprehensive decisions and therefore it is likely that this "list" will change over time. Remember this selection was based on my criteria (this is mentioned in an earlier post addressed to MoneyMon$ter a.k.a. MoneyMa$ter). Any feedback and thoughts are welcome, hope this helps Carlos

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Quoting forexplayer

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Hi Carlos,
What broker are you with? Do you see any slippage? tia.

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Quoting jcsmesquita

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Hey forexplayer,

I've been paper trading with OANDA, but unfortunately they do not allow hedging/simultaneous BUY&SELL.

So I've set up a trial account with FXSol (1 month trial), I've only put some random trades to try out straddling and it seems to work fine, also from what I read it seems they are pretty sturdy during news time. On thursday and friday I will be placing some trades so I'll post my results and let you know how the broker performed.

Hope that helps,
Carlos

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Quoting jcsmesquita

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Hey summitfx,

Sure, the "Top news to trade" my results suggest are:

- US Bernanke testimonies to Senate.
- US Consumer Sentiment (coming up this friday).
- US Nonfarm Employment.
- E-12 ECB Interest rate announcement.
- US New Home Sales (coming up this thursday).
- US Retail sales.

.....

Remember this selection was based on my criteria (this is mentioned in an earlier post addressed to MoneyMon$ter a.k.a. MoneyMa$ter).

Any feedback and thoughts are welcome, hope this helps

Carlos

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Quoting fairtrade

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Please take a look at this website with regard to fxSol fast market policy.

http://fxsol.com/spreads_and_margins...ket_policy.asp

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