Market Entry Time Prior to Economic News Release. Suggestions Please!

Dear FX Traders,

If I know the future results on a particular Economic news Event, and knowing the trend direction it will take,
Shall I enter the trade atleast 1 minute before the news is released/triggered?. Please advise.

Thanks
Taron

I realised with the last FED interest rate decision that the trend was bearish before the news was released, and immediately after this news release the rates changed bullish. Also, before last NFP release the trend had been bearish, and after the news release the trend turned bullish taking some of the losses back. So the news release was not any guarantee of the continuity of the trend.

The same happened with the USDCHF, at first bearish for at least last 24 hours, and then a strong bullish move, not immediately after the FED interest rate decision.

Being wiser now, I would not place orders in a time window of 1 hour before, and after an important news release - at least wait for the whipsawing ending.

At the moment of the news release I would not take any action, but wait until the whipsawing has been ended. and a clear direction has been established. Of course that can mean, that the trader is going to completely miss the move, which in USDCHF's case happened within ten minutes.

This was my suggestion, and I would like to read others commenting, too!

I don’t think it’s a good option! Because, there is nothing like 100 in Forex; and be more careful on high impact news sessions!

Bizinvestor01 posted:
Dear FX Traders,

If I know the future results on a particular Economic news Event, and knowing the trend direction it will take,
Shall I enter the trade atleast 1 minute before the news is released/triggered?. Please advise.

Thanks
Taron

Time for entry prior to news events is often covered in the terms of service and acceptable use terms that you agreed to when you opened your trading account with your brokerage.

Some brokers will cancel your winning trades if you open them right before a dramatic news event move in the markets.

Contact your brokerage if you are unsure of the time allotments required for their trading services.

I am also for the option to make something like that before the even happens, but it should be possible with your broker, otherwise it will not work at all for you anyway. With which you are currently working ? Then with those do just that and reports.

Professional4X posted:

Bizinvestor01 posted:
Dear FX Traders,

If I know the future results on a particular Economic news Event, and knowing the trend direction it will take,
Shall I enter the trade atleast 1 minute before the news is released/triggered?. Please advise.

Thanks
Taron

Time for entry prior to news events is often covered in the terms of service and acceptable use terms that you agreed to when you opened your trading account with your brokerage.

Some brokers will cancel your winning trades if you open them right before a dramatic news event move in the markets.

Contact your brokerage if you are unsure of the time allotments required for their trading services.

No way to ignore your points; this is why news trading is always challenging!

Thanks for all the supportive comments .

This particular restriction doesn't apply to my Broker, By Analyzing the markets, I come to realize even if the news is a positive trend, The markets can move in the opposite direction before making a correction, So this can be tricky.

Bizinvestor01 posted:
Thanks for all the supportive comments .
This particular restriction doesn't apply to my Broker, By Analyzing the markets, I come to realize even if the news is a positive trend, The markets can move in the opposite direction before making a correction, So this can be tricky.

Just a suggestion but you might want to read over your terms of service and acceptable use policies for your broker, to be 100% sure that they don't have a news events restriction of any kind on your accounts. It's often mixed into the sections covering market liquidity if not in a section related to news events themselves.

It wouldn't be very good if suddenly you make a massive profit from a news event only to have it taken away by your brokerage because of a somewhat obscure rule hidden in the fine print of your contract.

One thing that I've found helpful during times of news events, is to move my stop loss up to lock in the profits on the winning trades. This way, when those opposite market spikes happen, the worse thing that will happen to those tickets is I lost a few pips on those tickets but I still end up closing them out in profit. A smaller profit is better than a big loss in my opinion.

If they do get closed out in profit from a market spike, then you can always open new tickets again once the market has settled down, and started moving back to where you projected it would be.

Of course, this is just how I do things in my own accounts, everyone has to ultimately decide for themselves what will work best.