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How do you trade news?

  • #401
  • Jul 31, 2006 12:13am Jul 31, 2006 12:13am
Quoting hoh
...NEVER lose 2% of capital for every SINGLE bad trade, ESPECIALLY FOR NEWBIE because this is the ONLY way for him/her to stay LONG enough to learn more until he/she starts to be profitable.

The second rule in money management is: NEVER ever listen to anyone, including your broker, mentor, friend, full-time trader etc. to put your trade in more than 2% risk in capital. Never do this UNTIL you are profitable and your capital is as huge as MoneyMaster's.
I agree with you for the most part, except that I trust my system very well and I risk 6% per trade. I have no cap on my total position risk.

It comes down to trusting your system. The 2% rule is really just there to help newbies in the beginning. You'll find that most of the guys that have been in this business for awhile actually ride a variance in their risk. On some strategies they risk 6%, while on others, they may only risk 1% because they know that, mentally, they're not there yet to trust their system. However, most folks have a limit overall of what they will risk.

You really have to know yourself in this business. I've discovered a lot about myself, that's for sure.
Mr. Trend
  • #402
  • Jul 31, 2006 1:07pm Jul 31, 2006 1:07pm
Hey MM,


This is my first time posting in this forum, but I wanted to say thanks for your insights.

Also, I use two brokers. FXSol and GFT, I have never had a requote or an extended spread on either one of them until last week????? Both of them hit me with it. I was also confused but carried on anyway. And I made money!!!! I guess that I just looked at it as part of my cost of doing business.

As a trader of 3 years I have found that the most success I have had is based on an intelligent system on trading the news. It sounds like we both approach in a similar fashion. I do have a lot to learn however.

I have been through my tanked accounts and my consistant losses, until I started trading with the method I use now. I am finally seeing some consistent growth. For the past year it has been at breakeven, which I thought was quite an accomplishment in itself. I think that part of the problem we face in forums are the many who are after quick money without having to pay for the education. Anything worth doing, is worth the cost of learning, even if that cost is our own mistakes.

Anyway thanks for your insight

DC
"There is MORE Happiness in giving than receiving"
  • #403
  • Jul 31, 2006 3:14pm Jul 31, 2006 3:14pm
This week is a big week.
Lot's of interest statments, nonfarm also.

Who's trading what? And maybe... how?
Try hard, think fast, die young
  • #404
  • Jul 31, 2006 7:18pm Jul 31, 2006 7:18pm
Quoting drcole1
Hey MM,

....

I use two brokers. FXSol and GFT, I have never had a requote or an extended spread on either one of them until last week????? Both of them hit me with it. I was also confused but carried on anyway. And I made money!!!! I guess that I just looked at it as part of my cost of doing business.

....

Anything worth doing, is worth the cost of learning, even if that cost is our own mistakes.

Anyway thanks for your insight

DC
Hey DC, (Dallas Cowboys??? }

Thanks for the comments. Super attitude, super adjustment and you continue takikng what the defense gives you because you're willing to learn everyday you rise to greet the sun.

Great job, DC.
  • #405
  • Jul 31, 2006 7:20pm Jul 31, 2006 7:20pm
Quoting dof
This week is a big week.
Lot's of interest statments, nonfarm also. Who's trading what? And maybe... how?
Well I'm trading __________ on ___________; then the next day I'm trading ____________________, _________, and _________________. BTW don't forget to trade __________, also!!!!

  • #406
  • Jul 31, 2006 7:58pm Jul 31, 2006 7:58pm
From my experience, once the move starts immediately after the news, move the stop to breakeven (or to 5 pips profit) and not touching it further. go to a 5 minute chart and watch macd/momentum to wane for close signal.

However, if the broker would not allow you to put soo near a stop, then you should perhaps choose another broker instead. no sense playing with a lousy broker.
  • #407
  • Aug 1, 2006 3:04am Aug 1, 2006 3:04am
hi everyone,

just wanted to drop a note of thanks to money master and mr trend for showing us all the single most important reason traders fail, be it forex, commodities or equities.

i dont think anyones quite pointed it out yet so i'll spell it out:

trading turnover.

as opposed to crappy systems/brokers/indicators/psychics/crystal balls,...altho yeah, they certainly dont help.

how many people do you know that say 'all i want is $50 a day' as if having modest gains or extravagant desires makes a difference to the market? i'm sure everyones thought this before and i know i spent a stupidly long time thinking this was a sensible idea too.

but i didnt start making serious money in equities until i stopped trading everyday.

then i didnt stop losing money in forex until, yet again i stopped trading everyday.

and because i stopped trading everyday, the news days became the most important days for one simple reason:

time is the only constant.

markets can only go in one of three ways.

but the bias of which 3 ways varies over the constant of time.

the most likely moves occur around big news days, so you take out the time factor cos you know that now, in this second, it will move in one of three ways depending on the news.

so using this, you do your straddle or hairtrigger market orders depending on the news.


then, win or lose, you go live your life and as MM says "live to trade another day".

its alot easier than 'its crossing, err, no its not, no wait, maybe, yes, yes, aww crap no! '

having said that, you do spend the majority of your time watching the news and reading reports, digesting everything, and watching the ticker everynow and again to maintain your "feel" of the markets.

but you dont do shit till the day comes.

its akin to martial arts, you train your mind spirit and body for the one day some junkie pulls a knife on you. but you dont go beating everyone up just to add notches to your belt.

the hardest thing i ever did was absolutely nothing! ( cant remember who said that )

besides, whats the rush , the markets will always be there

so cheers for the reminder MM and mr trend, my forex life is alot less stressfull now
  • #408
  • Aug 1, 2006 10:34am Aug 1, 2006 10:34am
Quoting sknk
hi everyone,

just wanted to drop a note of thanks to money master and mr trend for showing us all the single most important reason traders fail, be it forex, commodities or equities.

i dont think anyones quite pointed it out yet so i'll spell it out:

trading turnover.

as opposed to crappy systems/brokers/indicators/psychics/crystal balls,...altho yeah, they certainly dont help.

how many people do you know that say 'all i want is $50 a day' as if having modest gains or extravagant desires makes a difference to the market? i'm sure everyones thought this before and i know i spent a stupidly long time thinking this was a sensible idea too.

but i didnt start making serious money in equities until i stopped trading everyday.

then i didnt stop losing money in forex until, yet again i stopped trading everyday.

and because i stopped trading everyday, the news days became the most important days for one simple reason:

time is the only constant.

markets can only go in one of three ways.

but the bias of which 3 ways varies over the constant of time.

the most likely moves occur around big news days, so you take out the time factor cos you know that now, in this second, it will move in one of three ways depending on the news.

so using this, you do your straddle or hairtrigger market orders depending on the news.


then, win or lose, you go live your life and as MM says "live to trade another day".

its alot easier than 'its crossing, err, no its not, no wait, maybe, yes, yes, aww crap no! '

having said that, you do spend the majority of your time watching the news and reading reports, digesting everything, and watching the ticker everynow and again to maintain your "feel" of the markets.

but you dont do shit till the day comes.

its akin to martial arts, you train your mind spirit and body for the one day some junkie pulls a knife on you. but you dont go beating everyone up just to add notches to your belt.

the hardest thing i ever did was absolutely nothing! ( cant remember who said that )

besides, whats the rush , the markets will always be there

so cheers for the reminder MM and mr trend, my forex life is alot less stressfull now
Impressive thoughts; really aprecite them; i must say you are totally right... the market will always be there.
Have a good day and a good trade!
  • #409
  • Aug 1, 2006 12:31pm Aug 1, 2006 12:31pm
cheers jtacher.
  • #410
  • Aug 1, 2006 12:33pm Aug 1, 2006 12:33pm
Quoting sknk
hi everyone,

just wanted to drop a note of thanks to money master and mr trend for showing us all the single most important reason traders fail, be it forex, commodities or equities.

i dont think anyones quite pointed it out yet so i'll spell it out:

trading turnover.

as opposed to crappy systems/brokers/indicators/psychics/crystal balls,...altho yeah, they certainly dont help.

how many people do you know that say 'all i want is $50 a day' as if having modest gains or extravagant desires makes a difference to the market? i'm sure everyones thought this before and i know i spent a stupidly long time thinking this was a sensible idea too.

but i didnt start making serious money in equities until i stopped trading everyday.

then i didnt stop losing money in forex until, yet again i stopped trading everyday.

and because i stopped trading everyday, the news days became the most important days for one simple reason:

time is the only constant.

markets can only go in one of three ways.

but the bias of which 3 ways varies over the constant of time.

the most likely moves occur around big news days, so you take out the time factor cos you know that now, in this second, it will move in one of three ways depending on the news.

so using this, you do your straddle or hairtrigger market orders depending on the news.


then, win or lose, you go live your life and as MM says "live to trade another day".

its alot easier than 'its crossing, err, no its not, no wait, maybe, yes, yes, aww crap no! '

having said that, you do spend the majority of your time watching the news and reading reports, digesting everything, and watching the ticker everynow and again to maintain your "feel" of the markets.

but you dont do shit till the day comes.

its akin to martial arts, you train your mind spirit and body for the one day some junkie pulls a knife on you. but you dont go beating everyone up just to add notches to your belt.

the hardest thing i ever did was absolutely nothing! ( cant remember who said that )

besides, whats the rush , the markets will always be there

so cheers for the reminder MM and mr trend, my forex life is alot less stressfull now
One of the best post i ever read. Identifies very well with my current dilemma, thanks for your thought provoking post.
  • #411
  • Aug 1, 2006 1:21pm Aug 1, 2006 1:21pm
MoneyMaster and Mr. Trend,

Thanks for your kind words and detailed explanations. I totally agree with you.

I emphasized in sticking with 2% risk control was because many new system followers including me often overlook fine print of the systems we are following. I myself for example, often forget basic trading rules when learning others' systems. So it was a reminder for me as well because I'm dump enough to only remember by emphasizing.

I'm back to learning & lurking mode.

Hoh
  • #412
  • Aug 1, 2006 9:59pm Aug 1, 2006 9:59pm
Well,

Today wasn't such a good day for me. I lost a little ground, but my entry orders went in right where I wanted them too and my orders got filled precisely. On both of my platforms. The problem was with the market reaction.

I don't think that FXsol manipulates the spreads all the time. I know that GFT doesn't. In fact I have confidence in both of those brokers. Sure they mess with you occasionally, but they are in it for the money too.

We just have to learn to coexist. I just want my share that is all.
As for my trades, well this was the kind of day where good USD news lead to a weaker dollar, for whatever reason. It happens. I learned a few things from my losses, and I will be better prepared for the next time. Oh, there will be a next time because I traded within my means and protected my account!!!

Anyway, I just thought that I would add my piece

Thanks

DC
p.s. No MM, that doesn't stand for (Dallas Cowboys) I am, a Cleveland Browns fan. That's ok, you can laugh lol, lol. I am just a loyal person.
"There is MORE Happiness in giving than receiving"
  • #413
  • Aug 2, 2006 10:02am Aug 2, 2006 10:02am
hello! i'm new at forex trading. i've been trying various demo accounts. i got the hang of MetaTrader4 already. Lately I've been using MIG demo. I was about to send them my requirements when I stumbled upon the comments here in forexfactory and forexbastards.com. I really like the 2 pip spreads they offer but that won't matter much if I can't get my trade in if it is true that MIG is the 'king' of re-qoutes. The comments scared me off.

I also like GFT's Dealbook but I can't figure out if it allows hedging. GFT said hedging is allowed but I haven't talked to their representatives because the time here in the Philippines is GMT+8.

I can't seem to get the hang of VTtrader, maybe because I'm so used to MEtaTrader now.

Can the experts, long-time traders, and other members help me out with their recommendations?? PLease, Please, Please....


-- I'll try your box strategy smjones, thanks for posting it --
  • #414
  • Aug 2, 2006 11:15am Aug 2, 2006 11:15am
Quoting drcole1
DC
p.s. No MM, that doesn't stand for (Dallas Cowboys) I am, a Cleveland Browns fan. That's ok, you can laugh lol, lol. I am just a loyal person.
Now why would I do that Doc?

  • #415
  • Aug 2, 2006 11:19am Aug 2, 2006 11:19am
Quoting BurgerKing
From my experience, once the move starts immediately after the news, move the stop to breakeven (or to 5 pips profit) and not touching it further. go to a 5 minute chart and watch macd/momentum to wane for close signal.

However, if the broker would not allow you to put soo near a stop, then you should perhaps choose another broker instead. no sense playing with a lousy broker.
Have it Your Way, BurgerKing (just couldn't resist that opener!);

Good comments.

May I ask who is your broker and are you using Metatrader or some other trading platform?
  • #416
  • Aug 2, 2006 12:44pm Aug 2, 2006 12:44pm
Hi everyone,

Can anyone tell me where or how to get reliable economic news release update. the trading software I'm using doesn't have dependable news feed for trading news. It's kind of late, especially on economic data release.

thx.
You can't make the market move, but you surely can follow the move!!!
  • #417
  • Aug 2, 2006 6:57pm Aug 2, 2006 6:57pm
Quoting fxhot
Hi everyone,

Can anyone tell me where or how to get reliable economic news release update. the trading software I'm using doesn't have dependable news feed for trading news. It's kind of late, especially on economic data release.

thx.


Try tradethenews.com they have a pretty good news feed
  • #418
  • Aug 2, 2006 7:04pm Aug 2, 2006 7:04pm
Quoting titikokatiting
hello! i'm new at forex trading. i've been trying various demo accounts. i got the hang of MetaTrader4 already. Lately I've been using MIG demo. I was about to send them my requirements when I stumbled upon the comments here in forexfactory and forexbastards.com. I really like the 2 pip spreads they offer but that won't matter much if I can't get my trade in if it is true that MIG is the 'king' of re-qoutes. The comments scared me off.

I also like GFT's Dealbook but I can't figure out if it allows hedging. GFT said hedging is allowed but I haven't talked to their representatives because the time here in the Philippines is GMT+8.

I can't seem to get the hang of VTtrader, maybe because I'm so used to MEtaTrader now.

Can the experts, long-time traders, and other members help me out with their recommendations?? PLease, Please, Please....


-- I'll try your box strategy smjones, thanks for posting it --


I just started using GFT and I was told that you are able to hedge but if you want to hedge one pair you must have two accounts. That is the only way it can be done.
  • #419
  • Aug 2, 2006 8:48pm Aug 2, 2006 8:48pm
Quoting titikokatiting
hello! i'm new at forex trading. i've been trying various demo accounts. i got the hang of MetaTrader4 already. Lately I've been using MIG demo. I was about to send them my requirements when I stumbled upon the comments here in forexfactory and forexbastards.com. I really like the 2 pip spreads they offer but that won't matter much if I can't get my trade in if it is true that MIG is the 'king' of re-qoutes. The comments scared me off.

I also like GFT's Dealbook but I can't figure out if it allows hedging. GFT said hedging is allowed but I haven't talked to their representatives because the time here in the Philippines is GMT+8.

I can't seem to get the hang of VTtrader, maybe because I'm so used to MEtaTrader now.

Can the experts, long-time traders, and other members help me out with their recommendations?? PLease, Please, Please....


-- I'll try your box strategy smjones, thanks for posting it --
The president of Forex Traders Forum uses MultiBank TraderMT4 live from Forex Liquidity, they have mini accounts and he gets no slippage, no spread widening, and straddles the event -- same account. I do the same on demo and plan to join them live. Try them.
  • #420
  • Aug 4, 2006 8:37pm Aug 4, 2006 8:37pm
Is this thread working right? I'm surprised there're no fresh posts after the biggest news trading day. Well, I wouldn't mind being the starter here.

I traded G/U at FXDD today. They hiked the spread to about 50p upon news release (or 1 minute prior? Can't tell - too intensively watching 2 broker quotes along with news release). So the straddle strategy would not have worked, unless you had a >50p stop loss. I opened the position after the release with a market buy order, filled right away at not so great price - again, can't tell it was due to the slippage or fast moving market or both, then their server went dead, for more than an hour. Had to call their trading desk to close my position. Luckily, G/U was basically up during FXDD's blackout.

However, to give them credit where it is due, they honored their telephone commitment 100% and I saw my credit in my account when the server was back to life.

Would like to know other members' experiences today, with other brokers, e.g. Oanda, FX-Sol, MBTrading, esp. those using the straddle strategy - did it work at all, how large the slippage, etc?

Any feedback will be appreciated. Sharing is a good way for us to learn from each other.

Keep collecting those pips.

Cheers,

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