How do you trade the news in forex trading?

May 20, 2012 at 11:18
3,999 視聴
9 Replies
Jan 19, 2012からメンバー   24 投稿
May 20, 2012 at 11:18
How do you trade the news in forex trading?
 
 

A lot of people have been asking on how to trade the news.
although i strongly do not recommend just trading based on news only, but here’s some pointer.
1. News are categorised into the level of impact. low, medium, high
just like the word high, high impact news can change the trend of the market. changing a downtrend into an uptrend and vice versa.
some medium impact news do have such capability too.
2. watch out for the upcoming important news weekly and daily.
and note which pair will the news affect.
3. if you are in a position and there will be an upcoming high impact news in 2hrs time.
take either half your profits first as the market will start going frenzy usually 2hrs before the news. shift your stoploss to breakeven. this way, if you are going long and the news impact reversed the market, you still got half your profits and broke even on the other half.
4. if you are not already in position before the news. wait for 10 mins after the news is out before entering. as in the first 10 mins, you will see price go spiking around and it happens alot of time when once the news is out, price goes spiking up real fast. you will be there thinking if you don’t catch the boat now, you are going to miss a hell lots of pips. and when you got in at the high, price went spiking even faster downwards. what the..?!
did this happen before to you? Don’t worry,it happens to every one.
this is how the market works.
one reason is that when the news is out, major players throw in a sum of money enough to move the market up. when people sees the market moving up, they jump in to push it even higher as they went in with the ‘fake’ movement. the major players then wait for price to go up high enough and then they step in to throw in large influx of money to short it. gaining great amount of pips in a short period of time. i know this happens, and it happens a lot of times.
the other reason is that, the market is based on sentiments. even though the news is positive, and people start buying it long. making the market move up. but if the general market feel that the news is not as good as expected or for some other reason. the big players and professional traders will start shorting it. leaving the losses to those who just traded on positive news.
therefore, one way to go around it is to wait for 10 mins after the news is out to evaluate the REAL market movement before entering.
but as always, i highly recommend adding price action confirmation to it. then you have a high probability winner.
i hope this article helps and leave me a comment to let me know how you feel or any additional input you would like to add are welcome.
Ezekiel Chew
Dec 17, 2011からメンバー   75 投稿
Jun 01, 2012 at 02:53
I don't - I position trade on the 4 hour. I like when the news spikes UP right into my sell limit order, make for a good entry.
I wonder if the friends of the fed make a killing on the news trades?
forexboy
forex_trader_2934
Nov 11, 2009からメンバー   22 投稿
Jun 02, 2012 at 18:10
excellent post ezekiel. I could not have said it better myself.. I use a similar price action technique to trade high impact news events.
Feb 16, 2010からメンバー   8 投稿
Jun 18, 2012 at 18:46
Always trade with protection. =)
Protect Yourself At All Times!
Jan 14, 2010からメンバー   2299 投稿
Jun 19, 2012 at 00:30
Exactly!




付属品:

stevewalker
forex_trader_79941
Jun 06, 2012からメンバー   1439 投稿
Jun 19, 2012 at 00:56
different type of Stop Loss.


   Chikot posted:
   Exactly!




stevewalker
forex_trader_79941
Jun 06, 2012からメンバー   1439 投稿
Jun 19, 2012 at 08:42
Hi asiaforexmentor1

I read your posts and find valuable.

keep postimg.

walker


   asiaforexmentor1 posted:
   How do you trade the news in forex trading?
 
 

A lot of people have been asking on how to trade the news.
although i strongly do not recommend just trading based on news only, but here’s some pointer.
1. News are categorised into the level of impact. low, medium, high
just like the word high, high impact news can change the trend of the market. changing a downtrend into an uptrend and vice versa.
some medium impact news do have such capability too.
2. watch out for the upcoming important news weekly and daily.
and note which pair will the news affect.
3. if you are in a position and there will be an upcoming high impact news in 2hrs time.
take either half your profits first as the market will start going frenzy usually 2hrs before the news. shift your stoploss to breakeven. this way, if you are going long and the news impact reversed the market, you still got half your profits and broke even on the other half.
4. if you are not already in position before the news. wait for 10 mins after the news is out before entering. as in the first 10 mins, you will see price go spiking around and it happens alot of time when once the news is out, price goes spiking up real fast. you will be there thinking if you don’t catch the boat now, you are going to miss a hell lots of pips. and when you got in at the high, price went spiking even faster downwards. what the..?!
did this happen before to you? Don’t worry,it happens to every one.
this is how the market works.
one reason is that when the news is out, major players throw in a sum of money enough to move the market up. when people sees the market moving up, they jump in to push it even higher as they went in with the ‘fake’ movement. the major players then wait for price to go up high enough and then they step in to throw in large influx of money to short it. gaining great amount of pips in a short period of time. i know this happens, and it happens a lot of times.
the other reason is that, the market is based on sentiments. even though the news is positive, and people start buying it long. making the market move up. but if the general market feel that the news is not as good as expected or for some other reason. the big players and professional traders will start shorting it. leaving the losses to those who just traded on positive news.
therefore, one way to go around it is to wait for 10 mins after the news is out to evaluate the REAL market movement before entering.
but as always, i highly recommend adding price action confirmation to it. then you have a high probability winner.
i hope this article helps and leave me a comment to let me know how you feel or any additional input you would like to add are welcome.
Ezekiel Chew

Jul 02, 2012からメンバー   5 投稿
Jul 04, 2012 at 08:22
I dont believe in mews yrqding. i use daily price action
May 21, 2012からメンバー   33 投稿
Jul 09, 2012 at 15:51

   maifx posted:
   Always trade with protection. =)

lol
There are risk-lovers and there are risk-haters, but the best traders will take the risk as long as they get paid for it.
Jan 14, 2010からメンバー   556 投稿
Jul 11, 2012 at 10:28

   asiaforexmentor1 posted:
   How do you trade the news in forex trading?
 
 

A lot of people have been asking on how to trade the news.
although i strongly do not recommend just trading based on news only, but here’s some pointer.
1. News are categorised into the level of impact. low, medium, high
just like the word high, high impact news can change the trend of the market. changing a downtrend into an uptrend and vice versa.
some medium impact news do have such capability too.
2. watch out for the upcoming important news weekly and daily.
and note which pair will the news affect.
3. if you are in a position and there will be an upcoming high impact news in 2hrs time.
take either half your profits first as the market will start going frenzy usually 2hrs before the news. shift your stoploss to breakeven. this way, if you are going long and the news impact reversed the market, you still got half your profits and broke even on the other half.
4. if you are not already in position before the news. wait for 10 mins after the news is out before entering. as in the first 10 mins, you will see price go spiking around and it happens alot of time when once the news is out, price goes spiking up real fast. you will be there thinking if you don’t catch the boat now, you are going to miss a hell lots of pips. and when you got in at the high, price went spiking even faster downwards. what the..?!
did this happen before to you? Don’t worry,it happens to every one.
this is how the market works.
one reason is that when the news is out, major players throw in a sum of money enough to move the market up. when people sees the market moving up, they jump in to push it even higher as they went in with the ‘fake’ movement. the major players then wait for price to go up high enough and then they step in to throw in large influx of money to short it. gaining great amount of pips in a short period of time. i know this happens, and it happens a lot of times.
the other reason is that, the market is based on sentiments. even though the news is positive, and people start buying it long. making the market move up. but if the general market feel that the news is not as good as expected or for some other reason. the big players and professional traders will start shorting it. leaving the losses to those who just traded on positive news.
therefore, one way to go around it is to wait for 10 mins after the news is out to evaluate the REAL market movement before entering.
but as always, i highly recommend adding price action confirmation to it. then you have a high probability winner.
i hope this article helps and leave me a comment to let me know how you feel or any additional input you would like to add are welcome.
Ezekiel Chew


A 10 minute rule doesn't always work - you can see the market react one way once the news released, and only after 30 minutes see it go the other way around.

I would avoid trading while news happen as slippage and spread increases always follow. Stick to your trading plan no matter what's the outcome of the news. I've tried multiple times to trade according to the news' outcome, ie better/worse than expected, however the market's reaction doesn't always agree with common logic.
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