Quoting hunter101DislikedIts the NFR, everyone makes money (besides brokers and some TA peeps). Im still playing with economic reports in my demo, but i will be up with teh big boys soon!
My question is to the guy who doubts new trading, what do you trade, TA? Do you make money off of TA? Trading the news is profitable, because you better understand the market and you see it in a different light, such as not gambling and looking at past trends. I have been studyin for a few months of News trading and well.. I am profitable in my demo, besides losing half of the account when i was using TA, news trading (FA) has increased it!
GL to everyone, hoep to more peeps soon.
-JIgnored
Thanks for you post. I respect your comments.
However, I want to be very clear that I STILL think that many people get in to trouble trading news. Just because news comes out does NOT guarantee the type of movement that we saw today. There have been PLENTY of examples of news causing a 100-200 pip upswing only to come crashing down 10 minutes later.
The key to news trading can actually be quite technical. If you look for key resistance/support, news can help create the thrust required to break or bounce (usually break, in my opinion).
Don't be fooled into thinking that every NFP will be so clear cut. This was by FAR one of the easiest days on the news trading front. On days where it's not so clear cut, you get a lot of people complaining about their brokers, and how their spreads were too wide, or they couldn't get out of a trade, or they got stop hunted or what not.
It's part of the game...NFP could easily have been 250K jobs...and then what? would the Fed raise or pause? the sort of confusion would have created a bit of a whipsaw...one that would have been much more difficult to trade.
What made today so simple was because the Fed has been pressured to stop, and all the external factors pointing to the greater good of pausing versus raising fell into perfect equilibrium.
News really has to get you in the "mood" so to speak. If you don't get a feel for the correct mood of the market, news trading will be quite impossible.
Newbies, bewarned...days like this do not come with every news release, let alone every NFP release...you absolutely have to be wary of BOTH the technicals and the fundamentals.