News trading is very tempting

News constantly affects price movement, and if you think that you are not trading news, then anyway, this is not true. The news background can be more saturated or scarce in terms of events. It is more important to understand the consequences that are caused by news and events, to analyze their impact on the financial environment.

If traders don't want to take a risk, avoid news trading, because the impact of the news often making the price move high volatility up and down rapidly
if you having bad emotional control, mews trading is dangerous

I think it's important to understand that news exists. But all the people on here saying that YOU HAVE TO TRADE THE NEWS or that trading news is best, they're just plain wrong. Example: New trader sees a nice setup, news is about to hit. They avoid the trade due to possible volatility. I think it's so funny watching people who know nothing give advice. THERE IS NO BEST WAY TO TRADE, I REPEAT, THERE IS NO BEST WAY TO TRADE. smh

@winning_trades During news release time, market moves a lot. But trading during this time is not a good idea. During this time market becomes most unpredictable. If you are not very expert, it's better to stay away from trading during this time.

@Akasuki Yes it is not good to do news trading especially for newbies. News trading need very good fundamental knowledge.

Indeed news impact could make prices movement become very high volatility, but this condition is often dangerous, because sometimes traders needs to pay attention to the risk and put stop loss, high volatility market maybe hit stop0 loss and then continue to target, there are trader technical based trading prefer to stay away from news trading because they felt uncertain market.

News trading is tempting indeed, but you've got to avoid this temptation unless you are good at analysing the news and doing fundamental analysis. However, sometimes there are moments when everybody can try their hands in news trading. I am talking about non-farm payrolls trading. You can read different analytics and try to make your own decision which is closer to your vision of the market and its driving forces. More than that, there are some news that cannot be excluded from your decision making process even if you have never traded news, here I am talking about the news which are connected to the oil prices. Some of the news are so important that they affect the market dramaticaly (remember the beginning of 2020), but again, these are the news that everybody is talking about but not some daily informational noise.

For sure it can be but i think its like gambling, personally i think you'd have a better time in Vegas

- Study the political and economic details and processes that can influence news releases.
- Consider all possible scenarios in advance.
- Calculate in advance all the possible risks associated with these scenarios.
- Trade according to a plan and with strict risk control.
- Do not try to catch what has already been missed. Or wait for the secondary market reaction.

MarcellusLux posted:
- Study the political and economic details and processes that can influence news releases.
- Consider all possible scenarios in advance.
- Calculate in advance all the possible risks associated with these scenarios.
- Trade according to a plan and with strict risk control.
- Do not try to catch what has already been missed. Or wait for the secondary market reaction.

Easier said than done. How exactly do you do the things listed and how to you then use that information to make trading decisions.

Although news trading can significantly strengthen the trading strategy by adding fundamental analysis to the technical approach, it is not very easy to follow. One needs to keep updated with recent changes in the market and should align it with economic indicators.

UweMoench posted:
News trading is very tempting but for good for everyone. For news trading you need good knowledge on both technical and fundamental analysis. Otherwise most of the time you would lose money in news trading.

News trading is very tempting. It is very risky as well. Traders are to be very careful with news trading. Proper money management is needed with adequate knowledge about news trading.

cranberrythekid posted:

MarcellusLux posted:
- Study the political and economic details and processes that can influence news releases.
- Consider all possible scenarios in advance.
- Calculate in advance all the possible risks associated with these scenarios.
- Trade according to a plan and with strict risk control.
- Do not try to catch what has already been missed. Or wait for the secondary market reaction.

Easier said than done. How exactly do you do the things listed and how to you then use that information to make trading decisions.

Which of the following are you specifically interested in?

Perhaps I have already answered a similar question on the forum.

Everyone can contact me and I will answer if possible. Welcome.

Unellene posted:
it has always been important to follow the market news for trading, but here you also need to check the correct resources

I think news trading is not a good option for new traders.

Actually, as far as I concerned there are several techniques of news trading. Firstly, yu have to classify the news on two categories: unexpected and periodic ones.
Then, you have to check both categories, periodic are being repeated day by day, while you have to really ready for unexpected ones. Periodic news implies the news connected with interest rate, it happens once per five year if I'm not mistaken. Unexpected news appear quite unexpectedly, that's why they have such a name.
In my opinion, here fundamental analysis prevails over technical ones, however it's required to know the basics of boths ones.

News trading is fine if you know what to do. That is ike everything in trading, I think. That is why before trading the news you'd better learn lots of fundamental stuff in order to know which news have the potential to affect the market and what kind of news is useless for the traders to make up some conclusions. The only thing I should say is that news trading can definetely bring the profits and make your trading results much better but suh a thing is much more complicated that technical analysis, from my perspective. So, I strongly recommend to stay away from the news if you don't know how to analze it properly.

News trading is the act of buying and selling currencies after an important news announcement has been made. A trader should buy a currency following good news and sell after bad news, or vice versa. This is because an announcement can cause a major shift in the price of a currency, and if a trader acts quickly enough, they can make substantial profits.

Not been something that appeals to me as a sole focus. I prefer to consider the news and focus on where price might go in reaction and and then await confirmations.