How do you trade news?

First thing to do is stop posting the same question in so many threads.

You asked it in a pertinent thread originally.

To answer your question in the way i trade (since i am on a demo, then goin live once i feel confident) is:

Once the news comes out, stay in the trade for the first spike, which is usually about 20-30 pips, of course there CAN be spikes after that, but it depends on the report. If its a big report that moves the market, with past examples showing huge PIP movements, then the position should be stayed for a little longer. What i do is set horizontal lines to where the market meets consistently (from past expierences, i use 5 sec charts, sometimes 1 minute). Once the movment passes this, i would close my trade. I dont want to stay in a trade long, because of retraction. Overall, it is important to stay infront of your computer when the news comes out, so that you can be in the trade. Play it safe, and dont be greedy, thats my moto!

Hi,

has anybody tested or know if
GBPUSD or EURUSD spillage is less during news trading time using FxSol?

See my post #363.

They widen like this and worse often, now, with GBPUSD and EURUSD and others for a buy or sell stop entry.

Entry Orders

The best way is to get the news first and then have a plan of attack on what to do if its lower or higher then expectation. To get the news before everyone else you have to spend some real money on a news service that
somehow manages to get you the numbers a few seconds before its made public. Lets say for non farm payroll the market expects 125,000 you then would setup so if the number is 115,000 or less you go long on GBP/USD or EUR/USD if it comes out 140,000 or more you go short on GBP/USD or EUR/USD.

Another thing you need to look at is what the market has been doing up to the news. If you are going to trade some news release coming out of Australia and the AUD/USD went up 25 pips 15 minutes before
alot of the times it will be positive for AUD and the news might not push it up too much since its already gone up expecting a good number.

The more research you do on what the numbers should be the better.
If everything you have read points to a certain number being postive, ride it into the news with a stop loss that will reverse your current postion.
(ie if you trade 20 lots make your stop loss for 40 lots).

Alot of times it will spike and then everyone that was in on the spike will take profits right there so it will retrace a few pips then continue up. You miss the initial spike but usually the spike is no more then half the move.

Get a broker that doesn't mind you scalping the news, Oanda would prefer you stay in the trade at least a few minutes so they can add up the totals and get their hedge trade in.

I've been trying different brokers and there is one EFX Group that states in their write up that all styles are encouraged including scalping. They don't try to steal your money with huge spreads instead you pay a reasonable commission and if I go live with them, I hope to pay thousands in commissions. At least you know exactly how much you are paying them.
So far I have not seen any outragous spreads and no slips either (on the demo).They have a variable spread on all pairs and you can setup a colored underline under the pairs bid and ask quotes to see the spread. (ie green for 1-3 pip, yellow for 4-5 pips and red for 6 pips or more). Alot of times there is no spread for EUR/USD bid and ask are the same. Their downside - platform is about the most confusing of any I have seen, and they have no charting so you have to use a different demo for charting.
As I type this I just looked over and USD/CHF has 1 pip spreaad, GBP/JPY 6 pips GUP/USD 1 pip, EUR/USD 1 pip USD/CAD 2 pips, USD/JPY 1 pip.
Another big this with them is their office is local so I can go there and see someone face to face if and when I decide to open a real account with them.
Have also been trading on FXSOL's platform which I really like and like the 400/1 margin but alot of mixed reviews with them so I'm hesitant starting live with them.

Right now I have an account with Forex.com which I do not like, they will stop you out at a price below what is displayed or charted.

Hi everyone,
I trade with big news, before 90 seconds news release I put order SELL entry stop -15pips and BUY entry limit +15 pips. When big news release, price move up or down al least 50 pips in 1 minute, and I take profit. Sometime I failed, but I success more often.
What do you think about the way I trade?
In Forex factory do not have NZD, CHF calendar news. I find it in dailyfx.com . I am finding more news and forecast of NZD, CHF? Where can I find them?
Thanks!

Found this interesting article:

http://www.dailyfx.com/story/special...eyword=article

Good procedure.

Allow me to point out the following: demo platforms often differ from "Live" platforms. Case in point, FXSol's demo does not include the 25-35 pip premium during major news announcements but the live platform does.

Just information; not a recommendation.

Hi all,
New to the Forum and this thread.....I have read all 450+ of these posts with so many thoughts and comments on the tip of my tongue! Had some technical difficulties registering, but Mr. Merlin took care of me, it appears

Little background, I've owned my own business for over 6 years now and started FX 3 years ago as a little hobby during down times. Like many others I've had mini accounts where I thought I was onto something (ie doubling my balance) and then was sent back to the sidelines (ie getting slaughtered on 1 or 2 stupid moves........$$ management, $$ management, $$ management).

Now I've been back about 6 months....reading, studying, testing, mini trading, etc. even harder than ever before, hoping to someday "turn pro". I think this forum is chocked full of great info, insight and people, so I hope I can take the ride up with as many as you as possible?

Now for the relevant parts on news trading. Discovered it like every nuance (I know it's been around for years Money Master) I've come across......... the good 'ol internet. Thought I was a genious when I formulated my own news hedge strategy, but many of you guys humbled me once I started reading. I am in the process of refining and finding a new broker (fx sol they say is good ), and I won't even attempt to provide all my thoughts from 450+ posts, but I'll sum it up this way.........FXCM: no good for news trading (I know you all know and it belongs in a different thread).....and straddling 15-25 pips (depending on your risk tolerance for whipsaws) as close to release is the best technique (if you got the right broker, HA!!) I've seen, tried, back tested, etc!! If you have the fortitude for news trading I think it's most effective and low-risk!!

Recent Results (I know there are other threads for it, but killing more birds with this stone.....just this once ):

NFP- using 2 accounts in my mini, had to go Market order (FXCM- will not let you set enty orders in the volatile/ pre-volatile time frame...up to an hour sometimes) Long and Short and then I quickly established 20 pip stops for each all between 8:28-8:29 EST on EUR (a miracle they filled the order in retrospect.....see FOMC below)........extension of the miracle; the stop on the short filled -20 out of the gates and the Long ran, I moved my stop up to where I had locked-in profit and finally got stopped +69....net pips= +49!! It was better than sex.....and lasted as long (crackin' on myself?????)

FOMC- tried similar approach to the above......market orders DID get filled OK (slight delay on each....minor slippage)......The market apparently gapped over my 20 pip s/l on my Short position and before long I was frantically manually closing the Short while keeping my 3rd eye on the Long position, all-in.......manually closed both position with big delays in execution (if it took 10 secs....it was a life-time!!!!!) My Short -50, the Long +59...........net gain +9.

Money Master may (or may not) try to reassure me that at least I made pips..........but honestly kids........the FOMC trade was waaaayyyaya too stressfull..............gotta straddle.........straddle 101.

Thanks for your time......hope I haven't put anyone to sleep. Future posts will be shorter........If you're lucky!!!!!

Talk to ya soon,
Jim

I see a lot of people straddle the news and while that's a fine strategy I prefer to go about it another way. Take the FOMC for example. There was money to be made on the straddle (both ways) provided you were quick enough to take your profits on the first spike. Trading the news you know very quickly whether you are right or wrong. I trade it making sure my trade is proftable very quickly or I'm out. If it seems like a one way train I just pile on to my current position because there is often very little retracement during a one way move like friday's NFP.

Welcome aboard mate!!

Rest assured, personally I'm glad you took the time to go through these 450+ posts!! That way you won't expect us to answer the same questions for the zillionth time. :-)

On the stress piece, gotta do what works for you Jim. More importantly, as an experienced trader you know how to straddle, hedge, go market, sit it out, whatever, so you've got weapons of choice in this business we call FOREX.

Somehow methinks you'll be around these parts a piece!

With Fed out of the picture temporarily, Will we see big moves on the major news releases or will they slow down?

Faure:

Does this mean you may already have a position open in a news correlated pair (ie GBP or EUR w/ respect to the FOMC) based coincidentally on other factors like T/A, and if the news breaks in you favor you run w/ it or cut if it's not, or, are you saying you maybe do ur homework, predict and get out if your wrong?? Or maybe you can educate me/us further if I missed it...

Summit:

In terms of fundamentals....I believe (just Jim thinking here) that the Fed move (or alleged lack thereof) opens way for much more volatility on certain releases....and, in a nutshell, for "news traders" (put in " " for Dof's enjoyment) that have an appropriate hedge or straddle strategy, big PIPS await....just my optomistic view point...

Money Master, Money Man, Money Mogul, Money Mini-Me.....
Thanks for your confidence.....i'm here to learn, expand, contribute, absorb, and develop networks (not self promoting or spamming......coming from the heart)..........although the population of FXer's is gaining with expotential speed......the true concentration in our worlds (whether U.S., Canada, Eur, Asia, etc) is more sparse then we get caught up in here.......I'm a forex brainiac in my local universe (aren't most of you???), so I like the idea of spanning the galaxy to find people as addicted and commited to forex as I am.....more fun to follow.....time to hit the charts!! The active nite session approaches, and I'm not soley a "newsie".......I confess to a little T/A from time to time........"oh, behave!!!"

Hey MM,

I'm back from the dead, lol, well I just back from week away and got straight back into news trading, anyway just wondering whether you could expand on the premium issue you mentioned example FXsol. Thanks in advance

Don Carlos (yeah baby)

Friends, Traders, and Traitors,

I've just read the first 35 pages of Mark Douglas' book, "Trading in the Zone" (hope this isn't spamming). It is a must read. What's amazing to me is a number of the points I've made in this forum, responding to PMs and emails, can be found in this book.

Yeah I can quote myself!!! (actually it's called hitting the enter key before finishing ye olde poste!!)

Douglas devotes a chapter on "Taking Responsibility", as well as a chapter on "Consistency" and several chapters on your beliefs/mindset/perceptions.

What he describes is what I do and what I've tried to share with you. Quite frankly, this is the book I would write!!

"Trading in the Zone".

Mark Douglas is never spam... LOL Scott

A good article as it relates to news trading:

http://www.dailyfx.com/story/special...132699816.html

I had an Idea about trading news. tried it today on news.

instead of trying to predict/guess at where its gonna go, or jump in and out durring fast movement, wait for all the worlds banks to get there orders in and the market to settle. and look for 5/3/5 wave formations. the direction of the 5 wave waves should be the direction the market is going.
A very powerful tool I use on every entry on 5 min charts.
worked very well today I will try this from now on.


Dave