Is trading news too risky? | Forex Factory

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Is trading news too risky?

  • #1
  • First Post: Jul 28, 2006 3:38pm Jul 28, 2006 3:38pm
Big news create big moves. How easy is to catch a big move? How reliable are the brokers?
Is the risk worth it?

If you can make money quick you can lose money quicker.

Is trading news more risky than trading when you don't have major news?
Try hard, think fast, die young
  • #2
  • Jul 28, 2006 3:46pm Jul 28, 2006 3:46pm
Quoting dof
Big news create big moves. How easy is to catch a big move? How reliable are the brokers?
Is the risk worth it?

If you can make money quick you can lose money quicker.

Is trading news more risky than trading when you don't have major news?
I can tell you this: it's fun, like going to vegas. You can win big, you can lose big, but it's fun. I myself lost, but got a great rush from it. Seeing your account deplete so fast is like jumping from a plane when a drunk prepared your parachute. It's risky, but you feel alive. I made good money with an intraday system. Not a lot, but steady. Now I have to go back to that, and it's not that much fun, safer, but more boring.
  • #3
  • Jul 28, 2006 4:16pm Jul 28, 2006 4:16pm
Yeah its a sure high watching your account JUMP from $300 to $600 in seconds. I think the rush is worth the high risk
all fun aside it is important to have a plan
  • #4
  • Jul 28, 2006 4:25pm Jul 28, 2006 4:25pm
Quoting mxb
Yeah its a sure high watching your account JUMP from $300 to $600 in seconds. I think the rush is worth the high risk
all fun aside it is important to have a plan
If you only have 600$ and you see it go to 300$ in afew sec, your pants will catch fire
  • #5
  • Jul 28, 2006 4:46pm Jul 28, 2006 4:46pm
I think news trading is risky only because of slippage and requotes IMHO.
Like,when news hit the market,and you see BIG ass up candle starting to form where`s the risk if you can get right into with 2-5 pips spread,setting SAR order at let`s say 50 pips,thats like 2% of equity.Where`s the risk?yeah,I know 2%,but thats like not much,like it`s acceptable,and it`s like regular business fee.Risk is if you get filled with 30 pips spread and your SAR get`s ordered with 40 pips slippage.

Not that I think that 2-5 pips is fair.I`m more for 0,5-1 spreads,but it seems brokers aren`t into it as much as I am
  • #6
  • Jul 28, 2006 5:04pm Jul 28, 2006 5:04pm
Quoting jessieblue
If you only have 600$ and you see it go to 300$ in afew sec, your pants will catch fire
no. you can always use stop losses. I like the idea of going all in during volatile news events, but...too risky.
  • #7
  • Jul 28, 2006 5:07pm Jul 28, 2006 5:07pm
Quoting blueshift
no. you can always use stop losses. I like the idea of going all in during volatile news events, but...too risky.
Stop Lose cant excute sometimes!
  • #8
  • Jul 28, 2006 5:22pm Jul 28, 2006 5:22pm
Quoting FlashJack
Stop Lose cant excute sometimes!
Happened to me. Lost a third of my account. And it's a reputable broker too. They told me that slippage can occur and that I should have read the fine print. I can't even be mad at them, because they were right. Live and learn.
  • #9
  • Jul 28, 2006 5:26pm Jul 28, 2006 5:26pm
Quoting jessieblue
Happened to me. Lost a third of my account. And it's a reputable broker too. They told me that slippage can occur and that I should have read the fine print. I can't even be mad at them, because they were right. Live and learn.
Devils in details!!!
  • #10
  • Jul 28, 2006 7:21pm Jul 28, 2006 7:21pm
Trading news cannot be profitable anymore due to slippage and requote..and stoploss not meet.. base on my experience..Maybe, some can better at it than me.....or maybe wait after the first spike and box trade it like SMJ...just my opinion....
  • #11
  • Jul 28, 2006 9:32pm Jul 28, 2006 9:32pm
Wow, I'm really surprised how the pace suddenly went up on this thread. Well done everyone!

Cast aside the arguments for a second and check out the learning oportunity this whole situation with MM initiated, I thinks its pretty valuable to read people's reactions and perspectives on this, keep it up! But enough for now... lol

I would just like to say that with regards to the actual topic of this thread "How do you trade the news" there's been some really good insight into strategies and trading ethos - along with trader's results.

I'm just wondering whether there should be more focus into what everyone's learning/have learnt as they trade the news.

Since we act on what we learn, by sharing learning experiences hopefully this will lead us into a better understanding of how we trade the news, rather than what our strategy is.

Have a nice weekend every1,
Carlos
  • #12
  • Jul 28, 2006 9:34pm Jul 28, 2006 9:34pm
Wops, I posted in the wrong thread!

Sorry about that amigos,
Carlos
  • #13
  • Jul 29, 2006 2:05am Jul 29, 2006 2:05am
Quoting jessieblue
Happened to me. Lost a third of my account. And it's a reputable broker too. They told me that slippage can occur and that I should have read the fine print. I can't even be mad at them, because they were right. Live and learn.
Which broker is yours?

If it's same as mine, I've to be more careful.

Hoh
  • #14
  • Jul 29, 2006 6:52am Jul 29, 2006 6:52am
Quoting jessieblue
Happened to me. Lost a third of my account. And it's a reputable broker too. They told me that slippage can occur and that I should have read the fine print. I can't even be mad at them, because they were right. Live and learn.
Who is your broker?

Can you PM me the name if you are not comfertable in diclosing it publically.
fxtrada.com
  • #15
  • Jul 29, 2006 6:55am Jul 29, 2006 6:55am
Quoting lifetime_trader
Who is your broker?

Can you PM me the name if you are not comfertable in diclosing it publically.
Yes, I could do that, but it won't do you any good, all brokers do this, including ecn. I changed 3 brokers untill now, don't think there are good and bad, there are just good for you.
  • #16
  • Jul 29, 2006 8:50am Jul 29, 2006 8:50am
Quoting jessieblue
Yes, I could do that, but it won't do you any good, all brokers do this, including ecn. I changed 3 brokers untill now, don't think there are good and bad, there are just good for you.
does it feels nice to be question dodger?
  • #17
  • Jul 29, 2006 10:19am Jul 29, 2006 10:19am
Quoting juwaini
does it feels nice to be question dodger?
Oh, you got me, I was trying to protect the broker . Come on man, get real. I still am with that broker untill I test some platforms and decide on another, I don't want troubles here. Also, If I say the name I'll create bad publicity for nothing. They did have fine print stating their news policy ,I just chose to ignore it like everybody trading news. I don't hate the broker.
  • #18
  • Last Post: Feb 1, 2008 11:06am Feb 1, 2008 11:06am
It's not that risky, not as risky as everyone is making it "appear to be".
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