About news trading

You open two accounts. Set pending orders on each of them. You wait for the news to come in. On one account a loss, on another profit. The main thing is to correctly calculate the lot size. The lot size should be such that the account would be closed for a margin call in about 15 points.

zvr564 posted:
Trading on the basis of any news announcement is generally not a good idea. Spreads go crazy, jumping up to as much as 20 pips. Just be aware of what is happening but instead of refreshing your newsfeed all day, look for patterns and real strategies.

Agreed. I would suggest to use fundamental and technical analysis to pick on the trading strategy

fundamental for long term trend and technical for entry point

Fundamental trading is not just trading during the news.
This is a thorough analysis of political and economic factors and assessment of their dynamics to predict the possible impact on prices. Trading during the news is news trading and is often hard to predict.

Refreshing up with everyday news is cool but while making trading decisions it’s important to consider all aspects and not just news. Everyone knows, forex trading is affected by more than just news.

taskfries posted:
Refreshing up with everyday news is cool but while making trading decisions it’s important to consider all aspects and not just news. Everyone knows, forex trading is affected by more than just news.

This is the complete truth that every 'News Trader' and every other style trader should understand. News is just one of the factors while, I repeat, it is difficult to predict.

Yes indeed not easy to predict News effect, sometimes forecast and actual data should make the currency being stronger, but what happens is opposite, because this reason not all news giving exact impact into currency but reading the news is important because the trader can make preparation trading, like as technical trader usually stay away from the market if there are news high impact like as NFP

News trading seems exciting. But it is not easy to predict the move. It happens so quick. Novice traders do news trading due to the fear of missing a movement.

UweMoench posted:
News trading seems exciting. But it is not easy to predict the move. It happens so quick. Novice traders do news trading due to the fear of missing a movement.

Yes like as NFP news on the last Friday of this month, effect the news giving high impact to the market, where suddenly some pairs move rapidly, like as EURUSD move up only a few minutes then bounce back and then up again, it can make confused to handle position, because this reason some technical trader prefer no trade.

only do news trading if the news are major else the impact wont be much on your trading.

An important factor in making investment decisions. However, it is not the only deciding factor. Keep an update on the news about trading to get an idea about the trends but do your own research.

@ MarcellusLux I absolutely agree with you. Always going with the news would not prove to be a good idea. It is of course very essential for all other aspects while trading forex.

I had a great strategy that worked so well around news events. it made huge profits on demo but when I tried it on a real live account he spread and slippage took all the gains.

UweMoench posted:
News trading seems exciting. But it is not easy to predict the move. It happens so quick. Novice traders do news trading due to the fear of missing a movement.

I agree with you.

karlaelliott posted:
@ MarcellusLux I absolutely agree with you. Always going with the news would not prove to be a good idea. It is of course very essential for all other aspects while trading forex.

Those traders who are keen to trade only the news races are just looking for ways to make money fast in Forex, but forget that this is day-to-day hard work.
Analyzing news, possible risks, risk plan and money management, calculating entry points, analyzing related markets and political events, looking for possible options for exiting the market and making the most profitable decision, these are, in general terms, what is important.

SteveHanks posted:

UweMoench posted:
News trading seems exciting. But it is not easy to predict the move. It happens so quick. Novice traders do news trading due to the fear of missing a movement.

I agree with you.

you can use EA like me to open trades automaticly

SteveHanks posted:

UweMoench posted:
News trading seems exciting. But it is not easy to predict the move. It happens so quick. Novice traders do news trading due to the fear of missing a movement.

I agree with you.

too hard written
spent about 4 month and now the stats looks quite well, about 70% of winning (i have 4 account in different brokers for news trading and EA to open trades )

UweMoench posted:
News trading seems exciting. But it is not easy to predict the move. It happens so quick. Novice traders do news trading due to the fear of missing a movement.

I would not recommend trading during the release if you do not have a clear trading plan, risk plan and analytics of those factors that can affect the release result. It is not easy, but everything that is done professionally is not easy.

@MarcellusLux Yes you are right. News trading is not someting that can be recommended. It requires good understanding of the fundamental of both the both currency in a pair.