Reactionary News Traders Forum

Hey everyone,

I created this forum as a area where news trader can come together and share some of tricks of the trade. While I love forex, I have a hard time dealing with the psychological aspects of longer term trading. Additionally, being that fundamentals move the markets, news reports are key for any type of trader. There are a variety of good reports out there several times a week that come out (look at the calendar tab).

Anyways, just looking to get a conservation started on reactionary and pre-news release trading. What are your buy and sell stops? How do you deal psychology wise with markets that tend to whipsaw after a news release? What are your lot sizes on an average trade? Favorite reports to trade?, etc etc.

Thanks guys,

BTW if you do not news trade and trying to cause problems do us all a favor and go bug someone else!

PR

Got NZD rate and statement coming up a few minutes and NZD trade balance in over hour...we will see what happens

Walked away with positive pips, nice downward price action in the NZD/JPY pair

hi,

Definitely love to get involved in this thread. What's your method for news trading?

I personally take a view on what is expected to come out, and take a direction based on that. Don't look for many pips, say 30/40, but that's good enough for me

Jake,

I tend to be more on the reactionary side (trade seconds after info is out), it is usually good for 10-20 pips, and I only trade the high impact reports due to the fact they move markets more.

Although I do not trade all high impact, certainly matters about the result compared to the estimates and to the prior readings. If the report is trade-able, then I usually get it and out within a few minutes, preserve the gains or protect from further losses.

The problem with forex, for me, is that it is a 24/6 trading market and my trading methods are very different for equities, futures, etc because they have a set closing time everyday. Being at risk while I am sleeping is not an ideal situation for me and that is why I usually turn to news trading or early US/European session overlap.

@ Pip-Ranger

Yes it's the normal way to trade news i suppose. To be honest, I mainly look for those support and resistance levels and trade off them. Basically waiting for a reason, based off fundamentals, that the price will bounce from those levels.

Jake,

Exactly agree. Basically, fundamentals move markets and technicals help guide the price action.

The main reason I prefer to wait till after news is released is just that I get very worried that if the news is against my position in a big way and the price shoots up missing my stop. Couple years ago, that had happened to me where I was thinking a report would come out one way but was totally wrong and the price against just sky rocketed against my position not filling my initial stop at the predetermined level. Have you had any experience with this?

Yes that's always the risk with my type of trading, and yes it has happened to me on more than one occasion. Typically I find a lot of the time actually that playing off those support and resistance zones I can be out of the market before the news has been released. It's the most profitable and highest winning ration type of method I've seen. To be honest, I see it as more like investing than actually trading.

Jake,

You trade the AUD unemployment numbers? Got about 10 pips profit. Very interesting though, price gapped lower about 10 seconds before the report was released....seems like someone knew something before it was released. Disappointing to see 60 pip drop before report is released. damn inside trader DBs

@Pip-Ranger

Yes I did. There was some consolidation on the Pound Aussie pair so i set a market order and then another some pips below at another nice level. Set that last night and woke up to some nice profits.