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can't trade news in the future??

  • #1
  • First Post: Edited Aug 21, 2006 12:48am Aug 20, 2006 10:33am | Edited Aug 21, 2006 12:48am
Hi,

I see that news trading become very popular in this forex business to make profit, especially the straddle technique. Because this technique is an easy way to make profit and 95% very effective.

BUT I've heard that some big institionals don't like us to make profit, so they will fight our trading and then we can't make a profit.

For the example: if we use a straddle technique before the news, they (that big institional) will make the market up and down or may be widen the spread very wide, so we can loss because of that (We BUY, but they SELL to fight our trading with their big amount of money).

may be in futures we can't doing a straddle technique before the news happens, because that big institional already prevent the market with their big amount of money to fight our trading style especially during the news.(new trading)

because in the outside, there are some big institionals that make money if we loss

so, more people know this news trading technique or straddle before the news, the more we can't make a profit with this technique in the future.

Is it true ?

Now I think it's more difficult to use a straddle technique (or news trading) than before a lot of people know this.

may be this technique is already heard by the big institionals that make a money because we loss.

Please give me your comments about this ?

Thank you


Annie
[email protected]
  • #2
  • Aug 20, 2006 4:26pm Aug 20, 2006 4:26pm
I do not trade the news much, because I cannot follow the fundies that close. However, as the market changes and something no longer works that worked before, a good trader will adapt their approach to take advantage of a weakness or an inefficiency in the market. In this case perhaps a new type of trade to take advantage of the wipsaw caused by widening spreads, for example.

One must always adapt or die... It is really that simple.

Scott
  • #3
  • Aug 21, 2006 1:38pm Aug 21, 2006 1:38pm
I too ... do not trade news much. But I personally know a few traders doing the straddle technique with much success. This market will keep you on your toes ... haha. smjones is a wise trader ... you will have to adapt. We are in battle for pips. The big boys want all the pips for themselves, but there is always ways for the little guys to get pips.

Maybe traders will start widen the distance of the straddle technique to handle the whipsaw ... I'm not sure, but keep on using the technique until it doesn't work anymore.

Happy Trading ....
If it is not broken, fix it until it is!
  • #4
  • Aug 21, 2006 1:45pm Aug 21, 2006 1:45pm
I don't believe the myth that the big boys are out to get us straddlers. They don't care about us. Why? Because they don't have to.

The reason people blame institutions, brokers, etc., is because they can't adapt...

Something smjones related to...
Mr. Trend
  • #5
  • Aug 21, 2006 2:06pm Aug 21, 2006 2:06pm
Quoting Mr Trend
"The reason people blame institutions, brokers, etc., is because they can't adapt..."
Mr Trend

Agreed.

I find that there is way to much blame and not enough personal responsibility.

STOP complaining!! Stop with the conspiricy theories!! Stop with the blame game!!

The first place I look for the reason a trade went bad is in the:

MIRROR!

dc
"There is MORE Happiness in giving than receiving"
  • #6
  • Aug 23, 2006 11:19am Aug 23, 2006 11:19am
You seem to be describing scalping the news with a staddle and not even bothering to read what the actual report stated.

There are a lot of threads on scalping and I like fundamentals because I can actually understand why the price does what it does. When I try to apply any technical analysis, I feel very conflicted and unsure about position entries. When a report comes in with a large deviation from the expected, you can establish a medium term position (for me that is a few hours and occasionally stretching into days).

I have never tried holding positions for more than a few days. I am curious how long most "fundamental" traders hold their positions? Any thoughts on that.... anyone??
  • #7
  • Aug 23, 2006 11:54am Aug 23, 2006 11:54am
Quoting annie_82
Hi,

I see that news trading become very popular in this forex business to make profit, especially the straddle technique. Because this technique is an easy way to make profit and 95% very effective.

BUT I've heard that some big institionals don't like us to make profit, so they will fight our trading and then we can't make a profit.

For the example: if we use a straddle technique before the news, they (that big institional) will make the market up and down or may be widen the spread very wide, so we can loss because of that (We BUY, but they SELL to fight our trading with their big amount of money).

may be in futures we can't doing a straddle technique before the news happens, because that big institional already prevent the market with their big amount of money to fight our trading style especially during the news.(new trading)

because in the outside, there are some big institionals that make money if we loss

so, more people know this news trading technique or straddle before the news, the more we can't make a profit with this technique in the future.

Is it true ?

Now I think it's more difficult to use a straddle technique (or news trading) than before a lot of people know this.

may be this technique is already heard by the big institionals that make a money because we loss.

Please give me your comments about this ?

Thank you


Annie
[email protected]
You are ABSOLUTLEY RIGHT Annie but in need of some clarification.
If you think that people can be trying to cheat you, odds are you're right.
Big institutions could mean many things. The only people who care if you win or lose are people who have a direct interest in your results. To be specific, Your broker or their liquidity provider. Other traders, Big hedge funds and banks that you are not involved with could care less.

The FACT of the matter is this.- Your broker and/or their liquidity provider are not passing your trades through to a counter party. They are holding your trades themselves and playing the odds that you will lose. Period- and end of story. They make money when you lose. Why do they do this??? Because, most people lose, and the profits are HUGE.

I know you are looking to short term news trade. I have read your posts. Many share your search for the right broker. You are not looking for an honest broker. FORGET THAT, they all have to play the game to take your money. You are are looking for the right situation. What I mean by that is- someone who will take your trades and TRULY pass them straight through to a network of banks so that someone can take the other side of your trade. The question is at this time- WHO IS THAT?

The reality is, it will likely require a large account to get in the "real" game. I cannot imagine a scenario where you will ever have true interbank access via a mini or even a small full size account. The only "real" deals out there that I have seen have been commercial accounts. The smallest entry I have seen to that game is 50 k account size, most are 100k.

I have even considred just data trading in the futures market. The down side to fuitures is the reduction in leverage and margin requirements. So, it takes alot more money to make money. But , in futures you are actually going to market and the liquidity in currency futures is very very good.

Do not be disuaded by people who tell you that all this crap that goes on with these Brokers/Bucket Shops is "the way it is". It is only the way it is if you do not have access to the real interbank market. Your mission is to find it. If I find a real deal that accepts smaller account sizes I will certainly pass it on to all.

Good Luck Annie and keep searching.
Profit is where readiness meets Opportunity
  • #8
  • Aug 23, 2006 12:03pm Aug 23, 2006 12:03pm
Quoting FXopportunist
You are ABSOLUTLEY RIGHT Annie but in need of some clarification.
If you think that people can be trying to cheat you, odds are you're right.
Big institutions could mean many things. The only people who care if you win or lose are people who have a direct interest in your results. To be specific, Your broker or their liquidity provider. Other traders, Big hedge funds and banks that you are not involved with could care less.

The FACT of the matter is this.- Your broker and/or their liquidity provider are not passing your trades through to a counter party. They are holding your trades themselves and playing the odds that you will lose. Period- and end of story. They make money when you lose. Why do they do this??? Because, most people lose, and the profits are HUGE.

I know you are looking to short term news trade. I have read your posts. Many share your search for the right broker. You are not looking for an honest broker. FORGET THAT, they all have to play the game to take your money. You are are looking for the right situation. What I mean by that is- someone who will take your trades and TRULY pass them straight through to a network of banks so that someone can take the other side of your trade. The question is at this time- WHO IS THAT?

The reality is, it will likely require a large account to get in the "real" game. I cannot imagine a scenario where you will ever have true interbank access via a mini or even a small full size account. The only "real" deals out there that I have seen have been commercial accounts. The smallest entry I have seen to that game is 50 k account size, most are 100k.

I have even considred just data trading in the futures market. The down side to fuitures is the reduction in leverage and margin requirements. So, it takes alot more money to make money. But , in futures you are actually going to market and the liquidity in currency futures is very very good.

Do not be disuaded by people who tell you that all this crap that goes on with these Brokers/Bucket Shops is "the way it is". It is only the way it is if you do not have access to the real interbank market. Your mission is to find it. If I find a real deal that accepts smaller account sizes I will certainly pass it on to all.

Good Luck Annie and keep searching.
FXO,

I respectfully disagree with this statement.

What you should say is that brokers don't ALWAYS pass trades to their liquidity provider. SOMETIMES they hold onto the trade and SOMETIMES they trade against you.

It is impractical for brokers to trade against every single one of their clients. It doesn't make much sense. What if 2 clients have the EXACT OPPOSITE trade?

Brokers do some nasty things sometimes, but believe me, they aren't out to get everyone...they're just out to make money. Just like you and me...and having clients gives them the advantage of having a microcosm of the market...thus giving them more information about where true support and resistance is. They will use this information to place their own trades and SOMETIMES that will be directly against you...but SOMETIMES it may be in the direction of your trade.

If brokers make money when you lose, then NO customer would EVER win. Have you ever had a winning trade? I certainly have. In fact, I don't remember my last losing trade.

The brokers probably don't care much on an individual level whether or not you lose or make money...as long as you generate volume and show them the way.
  • #9
  • Aug 23, 2006 12:38pm Aug 23, 2006 12:38pm
(Quote)
What you should say is that brokers don't ALWAYS pass trades to their liquidity provider. SOMETIMES they hold onto the trade and SOMETIMES they trade against you.

(Response)
I agree the possibilities are endless. I will say that the vast majority of small positions are not passed through to the market and are held exclusivley by the liquidity provider.

(Quote)
It is impractical for brokers to trade against every single one of their clients. It doesn't make much sense. What if 2 clients have the EXACT OPPOSITE trade?

(Response)
Absolutley true. But the point is, they have an interest in you losing. BOTH of the traders in those opposing trades can lose depending on their exit. And, most often do.

(Quote)
Brokers do some nasty things sometimes, but believe me, they aren't out to get everyone...they're just out to make money.

(Response)
This is my exact point. They ARE just out to make money like all of us. BUT they have created a scenario where your loss is their profit. END OF STORY. So, guess what they are gonna do

(Quote)
If brokers make money when you lose, then NO customer would EVER win.

(Response)
Ha, if that was the most profitable scenario (and legal) that is what would happen. I assure you. But there is only so much people will put up with. And, you have to keep em coming back.

(Quote)
The brokers probably don't care much on an individual level whether or not you lose or make money...as long as you generate volume and show them the way.

(Response)
The problem is, and continues to be, that data traders hurt Bucket Shop Brokers. Short term data traders hurt them because they are not going straight thought to the market. Data Traders are getting up on the broker HUGE amounts of money before the broker can Hedge their own positions to compensate. This leaves the broker/liquidity prover exposed to a loss. Beat by their own system. THIS IS THE FACT. This is why they show bogus spreads, hold prices, fail order executions and spike stops.

You are right. They don't have time to play against every trader. But, they do play against certain traders who are consistently hurting them.
And, they definately employ tactics specifacally to defeat data players. Not because they don't like datat player, but, because they kill their profits in a hurry.
This is why Data Traders need to be in the right situation. I am here to tell the world that Brokers that are holding your trades themselves are not the right situation.
Bucket shops can't win with a good data trader unless they hedge the right amount with the market. That is very hard to do.
Bucket Shop Brokers do not want data only traders PERIOD. Unless they can continue to beat you with tactics and you keep coming back for the beating.

Think about it.
Profit is where readiness meets Opportunity
  • #10
  • Aug 23, 2006 10:47pm Aug 23, 2006 10:47pm
Hi

Thank you everybody for the reply

So if I'm not using a bucket shop broker, it's no problem if I always win and using a straddle without worry they will fight our trading to make us lose?

the NOT Bucket Shop brokers are ECN Brokers (like Interactivebroker.com, HotSpotFX and MBTrading) ??
and need more than $50,000 in capital with 100k contract size (lot) to do the interbank access ? is it true ?

does the interbank access trading don't have a delay and slippage ??

How about like the big hedge funds and big banks outside there, are they will fight our trading to make us lose like that bucket shop brokers ?

Thank you
  • #11
  • Aug 23, 2006 11:27pm Aug 23, 2006 11:27pm
Quoting annie_82
Hi

Thank you everybody for the reply

So if I'm not using a bucket shop broker, it's no problem if I always win and using a straddle without worry they will fight our trading to make us lose?

the NOT Bucket Shop brokers are ECN Brokers (like Interactivebroker.com, HotSpotFX and MBTrading) ??
and need more than $50,000 in capital with 100k contract size (lot) to do the interbank access ? is it true ?

does the interbank access trading don't have a delay and slippage ??

How about like the big hedge funds and big banks outside there, are they will fight our trading to make us lose like that bucket shop brokers ?

Thank you
So far I have not found any bucket shop being good to trade news. They employ all the dirty tricks to make sure you don't win.
Usually their trading platforms will freeze several minutes before and after news release.
I have chatted with them. Both tell me the same thing. In very volatile times, your orders may not get filled. Worst is if it gets filled, and suddenly the market moves in the opposite direction, your stop loss may even be ignored. According to them, this is likely due to "gaps" in the price movement. This can be a nightmare to your account.

For the record, 90% of all traders loss their money, so bucket shops do not care that the 10% is profiting from them. At the end of the day, these companies still make a huge profit.

As for ECN brokers, they don't care and do not know(they claim) your stop loss and your trading patterns. The more you trade, the more commisions they earn. They merely pass your orders to the real interbank fx markets for execution(whereas for bucketshops you end up trading against them and other fellow traders within the bucketshop)

Anyway, I would love to hear the experience from traders who are trading with the ECN brokers.
  • #12
  • Aug 23, 2006 11:27pm Aug 23, 2006 11:27pm
Annie,

You seem sincere. So let me share this nugget with you. Faith begins when fear ends.

Once upon a time, a long, long time ago, everyone accepted as "fact", everyone just knew the earth was flat. But then someone moved on faith and decided not to fear falling off the "edge" of the earth. Faith begins when fear ends.

Once upon a time, not too long ago, everyone accepted as "fact", everyone just knew no one could run a mile in less than four minutes. But then someone moved on faith and decided not to fear the naysayers.

Today, many traders (perhaps many on demo accounts) now accept as "fact", just know that newstrading will soon end. Join those of us, Annie, that choose not to fear. Then you will understand when I say fear not, only believe. It's your choice.

Regardless of what happens, believe you will win then act on what you believe. Acting on what you believe is faith. Believe you will adapt, improvise and domnate. Fear not. Only believe. Then act on what you believe. Newstrading (factoring in fundamental and technical information) is essentially a breakout strategy, i.e., the currency pair is channeling within a narrow range but it ultimately moves either long or short.

Turn a deaf ear to minds programmed for defeat; open your mind to the limitless possibilities emboldened by your faith.

Annie, if it were not so, I would not say.
  • #13
  • Aug 24, 2006 12:57am Aug 24, 2006 12:57am
I don't trade the news more of a position trend trader.

So I have to ask whay do you mean by "straddle" technique.


I familar with option straddles so I would imagine this is something in the same area.


Thanks for your input.
  • #14
  • Aug 24, 2006 1:14am Aug 24, 2006 1:14am
IF you think News Trading will be prohibited, then dont waste time and News Trade NOW! I should have news traded all the way back in March and I could have made a fortune if I did so. No one told me about it till I learned of it the hard way. I am trying my darnest effort to learn T/A but while at it, News is the only way to go right now.
  • #15
  • Oct 7, 2010 3:23pm Oct 7, 2010 3:23pm
Quoting BurgerKing
IF you think News Trading will be prohibited, then dont waste time and News Trade NOW! I should have news traded all the way back in March and I could have made a fortune if I did so. No one told me about it till I learned of it the hard way. I am trying my darnest effort to learn T/A but while at it, News is the only way to go right now.
Hi Bking !

I am new in news Trading? as I have mainly traded from a technical point of viex for long time. However I imagine that trading the news could be the most profitable.

Up to now, I have worked with a demo account, but, I cannot make a decision about the broker I shall choose. I have selected 3 or 4 ECN companies for news trading, but it happens very often to me that I get “Invalid Prices”, or “Offquotes” in my Metatrader Platform. Furthermore, when I get an execution, it is almost at the end of the spike (end of the first candle).

On the other hand, I would like to avoid Market Makers at all costs, as it is very easy to see widened spreads during news release.

Could you recommend to me 2 or 3 brokers you consider worthy for day trading news ?
Many thanks,
  • #16
  • Oct 7, 2010 4:15pm Oct 7, 2010 4:15pm
Quoting annie_82
Hi,

I see that news trading become very popular in this forex business to make profit, especially the straddle technique. Because this technique is an easy way to make profit and 95% very effective.

BUT I've heard that some big institionals don't like us to make profit, so they will fight our trading and then we can't make a profit.

For the example: if we use a straddle technique before the news, they (that big institional) will make the market up and down or may be widen the spread very wide, so we can loss because of that (We BUY, but they...

Hi Annie,
I have seen your post on Forex Factory, and in fact I have exactly the same problems you mention in your post.
I am starting to news trading (straddle trading) but I find that whether, the broker increses the spread during the news, or I am just wiped out from the market by the bid institutions even before the news release..

Many other times I get a signal from the Metatrader 4 platform saying : "Invalid Prices". Other times I get "Offquotes".
By now I am trading with a demo account on 3 or 4 ECN companies (which I believe to be more transparent).

I could read on your posts, that you were just about to try MB trading. Did you do it ? how did you find them for NEWS Trading.
In other words, did you succeed in day trading the news.
Which broker could you recommend to me ??


I shall be grateful to get any feedback from you on the subjet, as you had exactly the same problem I am facing now.
Thanks again Annie,
Regards,


[email protected]
  • #17
  • Oct 7, 2010 8:58pm Oct 7, 2010 8:58pm
Quoting annie_82
Hi

Thank you everybody for the reply

So if I'm not using a bucket shop broker, it's no problem if I always win and using a straddle without worry they will fight our trading to make us lose?

the NOT Bucket Shop brokers are ECN Brokers (like Interactivebroker.com, HotSpotFX and MBTrading) ??
and need more than $50,000 in capital with 100k contract size (lot) to do the interbank access ? is it true ?

does the interbank access trading don't have a delay and slippage ??

How about like the big hedge funds and big banks outside there, are they...
I suggest you try the ECN route for yourself, you can find Futures brokers which will let you open account for $5000.00.
That way you can observe what happens during the news on the "real" market, minimum 1 contract (around $100000.00).
I doubt stradles "work 95% of the time" though.
Enjoy.
Biggest joker
  • #18
  • Oct 7, 2010 9:29pm Oct 7, 2010 9:29pm
I wonder if you guys know that you're responding to a post that's 4+ years old. Just sayin'.
  • #19
  • Oct 7, 2010 9:44pm Oct 7, 2010 9:44pm
Quoting Pfx
Hi Annie,
I have seen your post on Forex Factory, and in fact I have exactly the same problems you mention in your post.
I am starting to news trading (straddle trading) but I find that whether, the broker increses the spread during the news, or I am just wiped out from the market by the bid institutions even before the news release..

[font=Arial][size=2]Many other times I get a signal from the Metatrader...
Forget news trading. Once upon a time, there was an opportunity to make good, easy money trading the news. That money however, was coming straight out of the broker's pocket, by taking advantage of a loophole in the system. Brokers have long wizened up, and the loophole was removed, because too many people were running their mouths, instead of taking advantage of the edge they had and keep quiet. Trading with an ECN around news, could be much worse, because liquidity tends to dry up at those times. That could cause your market orders to get filled at prices way worse than you might expect. That will not show up in demo. Do yourself a favor, and read up a little on how the market works. It will allow you to understand, why news trading as it is perceived in this thread, will not work in real life trading.
Stubbornly persistent
  • #20
  • Last Post: Oct 8, 2010 12:40am Oct 8, 2010 12:40am
Quoting billflet
I wonder if you guys know that you're responding to a post that's 4+ years old. Just sayin'.
Biggest joker
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