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News trading = Promised land?

  • #21
  • Aug 20, 2006 8:08pm Aug 20, 2006 8:08pm
I think people are looking for help when it comes to news trading because they all want to make lot's of money fast. They all are looking to make 50-100 pips in a couple of seconds. I think... I might be wrong.
They all think "wouldn't be nice to trade the news 5 minutes, 2 times a month and make lots of money".

I sure think that trading news can give you a great, great reward, but they all should know that IT'S NOT THAT EASY. You can get away with 2 orders, but how long?
Trading forex can pay you better than any job, but it's not easy! It's not all about 2 orders on news day. For the short term it might be, for the long run... it's more than that. It's just my opinion, it's not the absolut truth
Try hard, think fast, die young
  • #22
  • Aug 20, 2006 8:57pm Aug 20, 2006 8:57pm
Quoting MoneyMa$ter
"Probably not "many" traders, particularly those with "mini" accounts, can withstand multiple 50 - 200 pip losses, newstraders or not. Those who can will certainly survive, get wiser, stronger, adapt, improvise and dominate."
Perfect!!!!!! This is what it takes. News, Technical analysis, Candle entries, purchased signals, who cares how one get's into the market. (Whatever works for you is what you should do)

Learning how to manage the trade, adapt to changing brokers and markets, taking what is given, and learning how to identify those things makes a successful trader.

Not to minimize anyones entry system, (I am not) but successful trading comes from applying ALL of the above. Entry techniques are just one part of the business.

Anyone can get in, not all can get out with money in their pockets.

I have mentored a couple traders in my news trading method. It can be fascinating that even as I am calling out my trade, they lose money and I make money. What is the difference????? Why, while I am sitting right next to them do I make money and they lose???

It is there own level of courage, fear, greed, uncertainty, etc. etc.

IT HAS NOTHING TO DO WITH WHETHER WE STRADDLED TO GET IN!

To think so is just ignorant.

Just MHO

DC
"There is MORE Happiness in giving than receiving"
  • #23
  • Aug 20, 2006 9:07pm Aug 20, 2006 9:07pm
amen!!!

who ever said news trading was about staddles anyway?!?? FAR FROM IT!!

the first thing that a newbie thinks of when you say "news trading" is the staddle, so OF COURSE that is not the profitable way to trade news!

not saying there are no straddles involved in any profitable news trading, there very well may be, but at a much more sophisticated level. personally, i dont use staddles whatsover, and i never place orders ahead of the news release, always after.
Relax and be happy.
  • #24
  • Aug 20, 2006 9:11pm Aug 20, 2006 9:11pm
Quoting merlin
i never place orders ahead of the news release, always after.
guys take note how successful traders trade.
  • #25
  • Aug 20, 2006 9:13pm Aug 20, 2006 9:13pm
Yes, I also trade after the news. I have seen that it truly increases my oportunity for success..

Scott


Quoting merlin
amen!!!

who ever said news trading was about staddles anyway?!?? FAR FROM IT!!

the first thing that a newbie thinks of when you say "news trading" is the staddle, so OF COURSE that is not the profitable way to trade news!

not saying there are no straddles involved in any profitable news trading, there very well may be, but at a much more sophisticated level. personally, i dont use staddles whatsover, and i never place orders ahead of the news release, always after.
  • #26
  • Aug 20, 2006 9:13pm Aug 20, 2006 9:13pm
Quoting njfx
Looking at the price action before the announcement, when the big guys are positioning themselves is an interesting exercise.
yes agreed.

one way to get an edge is by trying to find a lot of traders being wrong.

for instance, if the three days leading up to an NFP report are all bullish, you see can deduce that traders are anticipating a good NFP report. if the report comes out bearish, thats a better opportunity to trade than if it comes out bullish. the bearish report traps the trader who went long for the past three days, and they want to get out AT ANY PRICE, causing a huge move. the bullish report just confirms the market's thoughts, and there will be traders looking to take profit from their smart decision three days ago, so the move might not be as pronounced.
Relax and be happy.
  • #27
  • Aug 20, 2006 9:20pm Aug 20, 2006 9:20pm
Quoting kolachi
guys take note how successful traders trade.
thanks for the acolade, but i want to make sure i dont give the impression that straddles = crap. people DO trade successfully with sophisticed analysis of staddles, im just saying thats not my style (because i am not as smart as the phd quants who are trading staddles based on technicals alone). the average everyday straddle though, i am sure that is crap
Relax and be happy.
  • #28
  • Aug 20, 2006 9:23pm Aug 20, 2006 9:23pm
The way i trade news is solely based on technicals.

I dont even pay attention to the news result half the time.

I base my trade after the news has been released on a channel breakout or a technical breakout.

Once there is enough momentum, and i have seen the spikes have dissipated from the market (usually during the news time of heavy volumes, the first spike is always the opposite to where the market wants to go) - i end up committing to a trade.

Probably 70% of the time i dont place a trade within the first 30 mins after the news, simply because i prefer to wait for my 15 min or 30 min candles close.

I dont see news trading as a major event on the market. It definately adds liquidity and volatility to the market, but at the end of the day, if the markets are lined up to go a certain direction, they will probably end up moving in that direction.

For example, have you ever seen an NFP or GDP announcement where it was positive for the USD, but by the daily close, the market has moved negative USD.

The numbers themselves coming from the news release dont totally make a difference, its the traders at the time of the news release that make the difference.

In all cases, where the orders are placed throughout the market, determines where the price action will end up moving.

This is why technicals always rule news trading.
  • #29
  • Aug 21, 2006 1:10am Aug 21, 2006 1:10am
News trading can be a great way to add to your profits but you should never use it as a sole technique! As you know, when there's a chance to make easy profits, there's also an equal chance to make a huge loss.

The first time I actually news traded was by accident. I was analyzing the technicals of the cable and when I was done with my analysis, I placed my buy stop at a level that I had determined using my own analysis. Being in Singapore, I get confused over timing sometimes and I forgot that a major piece of info was being released! I left my computer, as I had already placed my buy stop and stop loss. When I came back, the pair spiked upwards into my buystop. I quickly sold out with a huge profit.

From then on, whenever there's a major piece of news that's gonna come out, I would analyze my charts again and again and assess fundamentals to "predict" how the news would turn. I've never tried straddling positions but I do try and see where the news would head. It's quite good for the p/l statement =)

Remember, there's a fine line between gambling and trading. Know what's that line and make sure you don't cross it.
  • #30
  • Aug 21, 2006 6:12am Aug 21, 2006 6:12am
Quoting merlin
one way to get an edge is by trying to find a lot of traders being wrong.

for instance, if the three days leading up to an NFP report are all bullish, you see can deduce that traders are anticipating a good NFP report. if the report comes out bearish, thats a better opportunity to trade than if it comes out bullish. the bearish report traps the trader who went long for the past three days, and they want to get out AT ANY PRICE, causing a huge move. the bullish report just confirms the market's thoughts, and there will be traders looking to take profit from their smart decision three days ago, so the move might not be as pronounced.
Merlin I really like the way you explain about the psychology of the market/traders...... I think they are gems of information ....... have you ever come across any books that go into more detail/examples about it or is it something that you have picked up along the way by sitting and thinking about it ?

Dean.
perception is reality
  • #31
  • Aug 21, 2006 8:01am Aug 21, 2006 8:01am
Quoting deanz
have you ever come across any books that go into more detail/examples about it or is it something that you have picked up along the way by sitting and thinking about it ?
i read piles of trading books, but there are hardly any about price action. that is something i picked up along the way, by trading with other professional traders, some who have traded on the floor. its very valuable knowledge, and it gets you thinking about whats going on behind the scenes of a move.

there is one book that may help, that is Mark Fisher's book. he was a floor trader for many years, and has some good nuggets of information throughout the text.
Relax and be happy.
  • #32
  • Aug 21, 2006 8:26am Aug 21, 2006 8:26am
my ramble. I've never used a stradle with actual orders placed in advance. I have watched an hours-old box-play setup and the gone with the break out _after_ the news was released, often times utilizing Bloomberg (free) internet tv service.
. . . Part of my early training included quite a bit on trading the ABCD fibo extensions. The mentor (a great guy) had adopted the mindset through many years of TA and trading commodities, futures, and spot, that the "news" was just there to complete, or hasten along what the technicals (such as FIBOs, etc) were already indicating.

On a similar note to all this, when talking about "managing" the trade, I'm still not comfortable leaving trades open after a session's trading activity (i usually get up at 5am Pacific to trade during the US morning session), I often hear some of my mentors state they will tighten up their stops if they are in profit on an overnight trade before a news announcement. My Q is (and next time i'll ask them during class time), that if stops can be blown through during these times of volatility, isn't it often times a better/safer route just to close a profitable trade before a news release?
. . . And then there are the news release frequency. It seems like if one is to be cautious/heads-up during such times? Sheesh, it's getting to be that every US open means get ready for some sort of news release...though i do realize that what much of the above posts are talking about are just the biggies like FOMC and NFP.

Cheers,
Thom
  • #33
  • Aug 21, 2006 11:41am Aug 21, 2006 11:41am
Quote:
<TABLE cellSpacing=0 cellPadding=6 width="100%" border=0><TBODY><TR><TD class=alt2 style="BORDER-RIGHT: 1px inset; BORDER-TOP: 1px inset; BORDER-LEFT: 1px inset; BORDER-BOTTOM: 1px inset">Originally Posted by accrete

I often hear some of my mentors state they will tighten up their stops if they are in profit on an overnight trade before a news announcement. My Q is (and next time i'll ask them during class time), that if stops can be blown through during these times of volatility, isn't it often times a better/safer route just to close a profitable trade before a news release?
. . .

</TD></TR></TBODY></TABLE>
Tightening the stops increases the possibility of execution as the announcement draws near, whereas stops further out would probably hit around the spike and thereby get blown through. Tightening the stops makes sense. MM




Quote:
<TABLE cellSpacing=0 cellPadding=6 width="100%" border=0><TBODY><TR><TD class=alt2 style="BORDER-RIGHT: 1px inset; BORDER-TOP: 1px inset; BORDER-LEFT: 1px inset; BORDER-BOTTOM: 1px inset">Originally Posted by accrete

. . . And then there are the news release frequency. It seems like if one is to be cautious/heads-up during such times? Sheesh, it's getting to be that every US open means get ready for some sort of news release...though i do realize that what much of the above posts are talking about are just the biggies like FOMC and NFP.


</TD></TR></TBODY></TABLE>
IMHO, the following applies to major and minor news events. This is where the marriage of FA/TA has value. For example, presume the TA has you in a long position. Typically, if the FA confirms long, then I'd stay with the trade. Keyword: typically. We all know anything can happen in FOREX. Prime example: August NFP's initial spike was in the direction confirmed by TA and FA certainly supported that move. For those who did their homework (TA or FA or both), August NFP was a no-brainer. MM
  • #34
  • Last Post: Aug 8, 2013 2:52am Aug 8, 2013 2:52am
Quoting smjones
Yes, I also trade after the news. I have seen that it truly increases my oportunity for success.. Scott {quote}
Yes, I also trade after the news. I have seen that it truly increases my opportunity for success..

yes i think so, THX
if there is something you should keep secret,simply just save it,, so, just
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