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How do you trade news?

  • #281
  • Jul 27, 2006 8:14am Jul 27, 2006 8:14am
Quoting jtacher
Hi MONEYMA$TER:

since i´ve read you use fxsolutions as your broker, i try it... IT WORKS REALLY GOOD (much better than forex.com). and since this one allow hedging, i´ve started to do so.

just have one question. what news are the important news to trade?

tnx.

happy pips!
Hi,

See page 11, post #155..

Jason
  • #282
  • Jul 27, 2006 10:23am Jul 27, 2006 10:23am
I have one question for the news traders:

Say I straddle or hedge the currency pair before the news release -- how does it matter if I do it 30 sec before or 3 hours before?

For example, I buy and sell euros 3 hours before the news release, when the news comes out, I observe the direction for say 15-30 seconds and simply close the losing trade.

This way I don't have to use stoplosses right?

Don't flame the newbie
Divya
  • #283
  • Jul 27, 2006 10:40am Jul 27, 2006 10:40am
Suzuki,

I think you're missing the point of the straddle strategy. I would suggest you re-read the entire thread and continue learning. Makes no sense to buy and sell 3 hours prior to the news reports.

Cheers,
Trade what you see - Not what you think
  • #284
  • Jul 27, 2006 11:21am Jul 27, 2006 11:21am
Quoting summitfx
Suzuki,

I think you're missing the point of the straddle strategy. I would suggest you re-read the entire thread and continue learning. Makes no sense to buy and sell 3 hours prior to the news reports.

Cheers,
Hi summitfx,

I have indeed read this thread several times. What I'm trying to confirm is that the hedge trade itself is not very time sensitive.

Here is an example:
News comes out at 8.30am

Trader1: Performs the hedge trade at 8.20am, market moves up and down in anticipation of the news -- but the trader is still only two spreads down. When the news comes out and the direction is established, trader closes the losing side of the hedge.

Trader2: Performs the hedge trade at 8.29am, market moves up and down in anticipation of the news -- but the trader is still only two spreads down. When the news comes out and the direction is established, trader closes the losing side of the hedge.

I'm not implying that one should buy and sell 3 hours before the news trade. What I’m trying to figure out is, in the above example, if both Trader1 and Trader2 close the losing trade at the same level and use the same exit, wouldn't their net P/L be the same?

The other thing I'm trying to figure out is that when performing the hedge trade, does the trader need to setup stoplosses for each trade? So when the market moves in one direction the losing hedge is automatically closed -- or can the trader simply manually close the losing trade after observing the direction? That is, is there any difference between the speeds of execution of manually closing vs automatic closing using stoploss for brokers (other than the human lag of course).

Don't flame the newbie
Divya
  • #285
  • Jul 27, 2006 3:30pm Jul 27, 2006 3:30pm
For those expecting to read this:

I was due to trade today's New home sales news announcement scheduled for 2:00pm GMT...

Just one slight problem, somehow the times I jotted down for both trades this week (today's new home sales and tomorrow's Consumer sentiment) were both 1 hour ahead of actual time... meaning that I was expecting today's news to be released at 3:00pm GMT - LOL.

Result was utter fustration (why not throw in surprise as well :surprised ) for such a stupid mistake, I obviously didn't manage to enter the trade but, looking at the price movement, realised I would've "lost" due to my prepared stop losses and limit profit.

So since with any mistake comes a learning oportunity I guess the lesson of the day was - ALWAYS double, triple, quadruple check dates and times.

Also, I've added today's news move to my continuous research which hopefuly will improve my ability to make better informed decisions.

Ahhh this will be fun to look back to in a couple of years time

Cheers peeps,
Carlos
  • #286
  • Jul 27, 2006 3:48pm Jul 27, 2006 3:48pm
Quoting MoneyMa$ter
Hey jpeg3,

If you are getting in late, what happens when you try to get in .....earlier?? Just curious.
Hey MM hope all is well,

Not sure what you mean. are you talking about placing a stop loss before the trade on an educated guess of where i think it will go?

When i try to get in before the spike it could be one or both reason.

1. my mind proccess the number to slow to decide quick enough what to do after the release or...

2. my news service has to be quicker.

If that is what your asking? i guess this is the best way i can answer.

Thanks
  • #287
  • Jul 27, 2006 3:54pm Jul 27, 2006 3:54pm
Quoting jcsmesquita
For those expecting to read this:

I was due to trade today's New home sales news announcement scheduled for 2:00pm GMT...

Just one slight problem, somehow the times I jotted down for both trades this week (today's new home sales and tomorrow's Consumer sentiment) were both 1 hour ahead of actual time... meaning that I was expecting today's news to be released at 3:00pm GMT - LOL.

Result was utter fustration (why not throw in surprise as well :surprised ) for such a stupid mistake, I obviously didn't manage to enter the trade but, looking at the price movement, realised I would've "lost" due to my prepared stop losses and limit profit.

So since with any mistake comes a learning oportunity I guess the lesson of the day was - ALWAYS double, triple, quadruple check dates and times.

Also, I've added today's news move to my continuous research which hopefuly will improve my ability to make better informed decisions.

Ahhh this will be fun to look back to in a couple of years time

Cheers peeps,
Carlos
When you look at the news list on the FF home page , make sure you have your Timezone selected in the dropdown. It happened to me too and i learned from the mistake.
  • #288
  • Jul 27, 2006 5:02pm Jul 27, 2006 5:02pm
Quoting jcsmesquita
I was due to trade today's New home sales news announcement scheduled for 2:00pm GMT...

Just one slight problem, somehow the times I jotted down for both trades this week (today's new home sales and tomorrow's Consumer sentiment) were both 1 hour ahead of actual time... meaning that I was expecting today's news to be released at 3:00pm GMT - LOL.

Result was utter fustration (why not throw in surprise as well :surprised ) for such a stupid mistake, I obviously didn't manage to enter the trade but, looking at the price movement, realised I would've "lost" due to my prepared stop losses and limit profit.

So since with any mistake comes a learning oportunity I guess the lesson of the day was - ALWAYS double, triple, quadruple check dates and times.

Carlos
Great attitude Carlos,

Always a learning opportunity, see success. Always.

Now here's the heads up.

At the one minute mark, prior to release of the US announcements, I wasn't able to create the straddle today with FXSol. For the first time, FXSol's spreads spread, no.... widened, no....they galaxied (and if that wasn't a word, it is now!!).

It was my intent to create an entry 10 points away from market, because price action dictated such. When I tried creating the stop market entry, the order form required me to enter a price at least 20 pips away from the market price at 8:28ish 8:29ish am. Startled, this caused me to do a double-take, as that was the last thing I expected.

Oh but it gets better! Later in the day, someone (who shall remain nameless for I am not a snitch) cc'd me, by my email address (not in the blind), on an email sent to FXSol, confirming a telephone call the email's author had earlier regarding FXSol's policy for last minute entries just prior to news releases. [that was a mouthful]. For those that don't know, the official policy sets premiums (wider spreads) for such late entries.

In other words, someone tried the strategies I'd set forth in this forum, couldn't execute, called FXSol about it, then sent a confirming email (identifying me in the cc) about it, for "clarification".

Oh but it gets better than that!!! The same person inquiring of FXSol, asked me "how did you get around their policy?", based on my prior trades. And for the record, I never "got around their policy"; has somewhat of a nefarious tone, like evading tax liabilities as opposed to avoiding tax liabilities. Avoidance is fine; evasion is punishable by imprisonment.

So let me be the first to announce from this learning opportunity:

I see success, always.

Although I will continue to comment on various posts, I will no longer share my strategies on this or any other forum. Nor will I provide valuable insight through private emails or any other mode of electronic or written media. Today's events render it quite clear that either:

(1) broker agents monitor these forums in order to plug loopholes or
(2) traders among us contact brokers naively asking questions that raise the radar within the brokers' compound.

Regardless, I take full responsibility, for had I written nothing, then neither of those two possibilites would have existed. It was my intention to help.

Hopefully some of you learned something from the posts herein and I pray it will help you succeed where before you failed.

I'll close with this.... do not, I repeat do not issue a post explaining how you succeeded today using the strategies we discussed in this forum. And by the way, I did manage to profit 20 pips, nonetheless!! That's because I'm the Money Ma$ter!!!!
  • #289
  • Jul 27, 2006 5:22pm Jul 27, 2006 5:22pm
Sheesh MM.

That's clueless n00b behavior if there ever was one...
Mr. Trend
  • #290
  • Jul 27, 2006 6:06pm Jul 27, 2006 6:06pm
Quoting MoneyMa$ter
Hey jpeg3,

If you are getting in late, what happens when you try to get in .....earlier?? Just curious.
Hey MM hope all is well,

Not sure what you mean. are you talking about placing a stop loss before the trade on an educated guess of where i think it will go?

When i try to get in before the spike it could be one or both reason.

1. my mind proccess the number to slow to decide quick enough what to do after the release or...

2. my news service has to be quicker.

If that is what your asking? i guess this is the best way i can answer.

Thanks
  • #291
  • Jul 27, 2006 7:58pm Jul 27, 2006 7:58pm
Money Master,

I am not sure what word adequately describes the actions taken via e-mailing FXSol regarding your trading the news techniques. . .

All words I'm coming up with are pretty inflammatory so I won't go there.

Let's just say that a rotten apple appears to have spoiled this barrel.

Your generosity, time and patience has been much appreciated by so many of us following this thread.

So sorry for all of us that whoever had to take such thoughtless action.

Gtrader444
  • #292
  • Jul 27, 2006 8:16pm Jul 27, 2006 8:16pm
Hey MM,

Ditto on gtrader444 & Mr Trend's words.

Just to say I was really shocked to read about what happened to you with FXSol and that (*obscene language goes here*) who cc'd that e-mail to you.

Thanks for all your posts, they've been a real inspiration (to say the least)!

Take care buddy and keep droping by!

Carlos (tu hermano)
  • #293
  • Jul 27, 2006 8:44pm Jul 27, 2006 8:44pm
I don't get why a platform would want to give you a tough time making money. The more money you make, the more and higher leverage you trade, and the more money they make. Why should they care?
  • #294
  • Jul 27, 2006 8:51pm Jul 27, 2006 8:51pm
because of the rate system lag....and the fact that they cannot get to market quick enough to offset your position...

any time the market moves too quick...they cannot get to market quick enough to provide currency... anytime they make a trade that is different from the price they pay... say their rate feed lags the interbank feed, then they eat the slippage that occurs

i.e. news hits, you have entry order at 8500, the market goes boom to 8520 or more, they would have to sell to you at 8500 and that would cause them a loss directly out of their pocket when they went to market to buy back what they just sold you...

the only true way around this is via an ECN account where you go direct to bank, not via a broker like fxsol, oanda, or fxcm (they all have dealing desks from what i understand)

vince
  • #295
  • Jul 27, 2006 9:01pm Jul 27, 2006 9:01pm
Just so all will know -- FXSOL widened their spread for entries to 53 pips on the EURUSD some minutes before the Durable Goods etc news release, the first time since I've been trading live with them in 3 months of news trading.

They don't deserve any further patronage. It is ample evidence that these market makers are against traders but try to entice over trading and practise stop hunting to take money from their "customers", read victims.
  • #296
  • Jul 27, 2006 9:05pm Jul 27, 2006 9:05pm
I THINK THE THREAD SHOULD BE CLOSED!!
Trade what you see - Not what you think
  • #297
  • Jul 27, 2006 9:39pm Jul 27, 2006 9:39pm
Quoting Trinity
Just so all will know -- FXSOL widened their spread for entries to 53 pips on the EURUSD some minutes before the Durable Goods etc news release, the first time since I've been trading live with them in 3 months of news trading.

They don't deserve any further patronage. It is ample evidence that these market makers are against traders but try to entice over trading and practise stop hunting to take money from their "customers", read victims.
I cannot believe that ... 53 PIPS SPREAD ????? WTF??? But dont they advertise as fixed spread???
  • #298
  • Jul 27, 2006 10:09pm Jul 27, 2006 10:09pm
Quoting forexplayer
I cannot believe that ... 53 PIPS SPREAD ????? WTF??? But dont they advertise as fixed spread???
I'm sure if you checked it again it'll have an asterisk there denoting something else. All told, I'm a satisfied FXSol customer and I plan to stick with them; though I do not do news trading in the capacity that some others like MM do. As far as MM's conundrum, that sucks to hear that they stepped on your hoses, so to speak. This is why I've never been too keen to jump up and throw my system out there for everyone.

Also, to you guys who want to b!tch up and down about the news trading turning trickier than you wanted: There is no free lunch. There is always a cost to doing business. FXSol has expenses just the same as you do. They can't magically just crap out millions of dollars/euros in liquidity so you can chase your unicorn trades; they can only fill your orders as best as the interbanks will fill FXSol's positions, which is where your position resides in. And as TurboKaos has shown with his video, this situation is caused at the top of the chain, not at FXSol. So even if you were using a different broker, it wouldn't matter, as even the ECN's were getting some sporadic dealing.
  • #299
  • Jul 27, 2006 10:12pm Jul 27, 2006 10:12pm
Quoting forexplayer
I cannot believe that ... 53 PIPS SPREAD ?????
Thanks for the comments everyone: My friend (Trend, I want that 16 large back ); Gtrader444 (pardon me if I don't use your real name) and your group, mi hermano Carlos, those who PM'd me their comments, thanks those who emailed me and thanks to those who shared similar thoughts. Also Trinity thanks for input. (Sounds like Oscar night .... I digress).

Trinity's right. Believe it. Two minutes before, Cable long was 20-25 pips above market, while the short entry was at least 10 - 15 pips. So it would make sense that EUR/USD paralleled cable.

Summitfx, impetuous be not. (I don't really talk like that; just sometimes has a poetic ring, like Yoda......). The thread is valuable as a marketplace of ideas and information. Just realize detailed explanations of successful newstrading strategies, once posted, enter what's legally known as the "public domain" and once published, can land anywhere. So rather than end the thread, you just "tweak" the system/process and make it work. "Ya gotta be fit to get outta here alive!", as Darwin would say.

And remember trading news is so different from "trading" because of the potentially instant and dramatic financial results to be had trading news. So as fl_trading pointed out, that can be a significant hit on the broker - somebody's gotta pay, right?

Thanks again, everyone, and all the best.
  • #300
  • Jul 28, 2006 12:10am Jul 28, 2006 12:10am
Quoting MoneyMa$ter
Thanks for the comments everyone: My friend (Trend, I want that 16 large back ); Gtrader444 (pardon me if I don't use your real name) and your group, mi hermano Carlos, those who PM'd me their comments, thanks those who emailed me and thanks to those who shared similar thoughts. Also Trinity thanks for input. (Sounds like Oscar night .... I digress).

Trinity's right. Believe it. Two minutes before, Cable long was 20-25 pips above market, while the short entry was at least 10 - 15 pips. So it would make sense that EUR/USD paralleled cable.

Summitfx, impetuous be not. (I don't really talk like that; just sometimes has a poetic ring, like Yoda......). The thread is valuable as a marketplace of ideas and information. Just realize detailed explanations of successful newstrading strategies, once posted, enter what's legally known as the "public domain" and once published, can land anywhere. So rather than end the thread, you just "tweak" the system/process and make it work. "Ya gotta be fit to get outta here alive!", as Darwin would say.

And remember trading news is so different from "trading" because of the potentially instant and dramatic financial results to be had trading news. So as fl_trading pointed out, that can be a significant hit on the broker - somebody's gotta pay, right?

Thanks again, everyone, and all the best.
I´ve just read your previous posts, and i CANT BELIEVE THEM!!!!!. I just can say: IM WITH YOU, and tnx for all your post. we learned from them.
Have a good day and a good trade!
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