trade on news - good and bad sides?! I got nice free too

[Andy4rum]

Hey all,

First of all, slowly read this forum for 2-3 years by now, but only today I decide to say "Hi" and register finally I'd like to add my own 5 cents to T2W community

I'm keen on fast gain, but due lack of time - the best way for me is to trade in news.
I used limit orders (put them manually before the news etc) - but it was so annoying, because price up/down and I couldn't react same fast and some orders starts even before news affect

I got free tool, that probably able to help many traders as I'm... all you need is just set news time (and comment if needed) and SL/TP and trailing.. 1 min before news you will see 2 lines on EXACT pips distance from the price... 5 second before news, these lines converts to 2 stop orders. NO NEED TO CHANGE SOMETHING ANYMORE

so, very nice - simple and powerful! See attached
can't attach zip file. sorry
page: http://www.dmurakami.com/eanews4u.htm
no email/registartion - just clear download

 

[Andy4rum]

Hey all,

First of all, slowly read this forum for 2-3 years by now, but only today I decide to say "Hi" and register finally I'd like to add my own 5 cents to T2W community

by the way, got some Pips in CPI m/m today by using it... I'm in proccess to find new free news source... looks like I missed some sharp fluctuations..

 

[GroundStone Holdings]

Don't trade on news man, this is gambling

 

[NVP]

dangerous game trading the news ......get a decent sample size and tell us then how its going

cheers
N

 

[Andy4rum]

Hi all,

thank you for opinion... highly appriciate it... Sure, trading on news is quite risky... but from other hand, trading FX is risky too... as well as chose RIGHT broker... all things are quite risky, suddenly... anyway, I'm quite busy... just some trades on H4... and news are part of my interest now... but sure, only with small lot size and very safe way... small SL and higher TP - and both directions... will see

 

[Jason101]

Hi all,

thank you for opinion... highly appriciate it... Sure, trading on news is quite risky... but from other hand, trading FX is risky too... as well as chose RIGHT broker... all things are quite risky, suddenly... anyway, I'm quite busy... just some trades on H4... and news are part of my interest now... but sure, only with small lot size and very safe way... small SL and higher TP - and both directions... will see

I think GroundStone had his tongue in his cheek.

 

[FXX]

I trade the news all the time. My entire strategy is based off fundamentals,news,sentiment. Gambling implies probabilities and if you do the fundamentals right and trade on events where the data is unexpected, then it's almost a guarantee to work. The only aspect to this that is somewhat complex is managing the trade. Trust me this is a fantastic way to trade.

 

[Andy4rum]

I trade the news all the time. My entire strategy is based off fundamentals,news,sentiment. Gambling implies probabilities and if you do the fundamentals right and trade on events where the data is unexpected, then it's almost a guarantee to work. The only aspect to this that is somewhat complex is managing the trade. Trust me this is a fantastic way to trade.

Can you tell us a bit more details? Sounds interesting

 

[Pat494]

A problem is that sometimes good news is priced in already and as soon as it comes the stock goes down with traders taking profits, not up.

 

[NVP]

I trade the news all the time. My entire strategy is based off fundamentals,news,sentiment. Gambling implies probabilities and if you do the fundamentals right and trade on events where the data is unexpected, then it's almost a guarantee to work. The only aspect to this that is somewhat complex is managing the trade. Trust me this is a fantastic way to trade.

agreed.......its just how you interpret and manage the news being released in relation to the markets / currencies involved

my only rule is to not go in or set some trades up pre news release (unless i'm already on board a trade) ....after that i'll happily go in off of the post action .........

sometimes the best signals come when a market does something the opposite of what was expected , or at least doesnt move as much as expected ...thats a big big clue and worth a punt mostly

N

 

[FXX]

Can you tell us a bit more details? Sounds interesting

look at tier 1 and 2 economic releases where there are deviations from expectations and then look at what price did. it's obviously not as simple as trading a deviation because you need to understand the context meaning you need to do research into the economies and then use this info to trade a deviation pairing the currency with another that has the opposite picture (be it short term sentiment of medium term fundamentals)

 

[Andy4rum]

Hi all, time to get back to trading

Thanks for all opinions about news trading. I find it good, but reduce my focus on such style of trading a lot.
I just take huge news which are happens just once in 2 weeks normally. It helps to reduce risks as well

 

[Andy4rum]

Hey all,

Market is too quiet for "news" trading... hope to catch some Pips on Friday, gonna be a good shake, I think.

 

[FXX]

Plenty of news almost daily to make money off.

 

[Andy4rum]

yeah, but news have another side too - good pips fast. I know that risks are high, but as I know - all FOREX is high risk place...
I suppose, with right tactic and safe lot size - you can do scalping, trade on news etc..

 

[@lgoTr@der]

I would not trade on news. The market is not about now but the future so lot of important future news are already priced!
If you are not doing high frequency trading it sounds too risky to me.

 

[J_C_Anderson]

It is quite important to understand the nature of each event and its possible impact on the market. This understanding will give trader the possibility to see the whole picture of what is going on.
At the same time, it seems that most of the news releases cause huge volatiliy during the first minutes after being announced. This means that first movements are extremely large and could have any direction. Then, after the first reaction will slow down, the real trend would appear. That is why it is better to wait for some time to be able to enter the position with the relatively low risk.

 

[tomorton]

It is quite important to understand the nature of each event and its possible impact on the market. This understanding will give trader the possibility to see the whole picture of what is going on.
At the same time, it seems that most of the news releases cause huge volatiliy during the first minutes after being announced. This means that first movements are extremely large and could have any direction. Then, after the first reaction will slow down, the real trend would appear. That is why it is better to wait for some time to be able to enter the position with the relatively low risk.

Great stuff, you have absolutely summed up the danger of news trading. Its possible you can get the direction and extent of the move right but be shaken out by initial volatility which is basically just noise as the major players adjust their positions and risk exposure and while our brokerage firms widen their spreads to ensure they don't have to accept unquantified risk during this period.

Its smart to follow the trend but its dumb to follow a trend which isn't there yet.

 

[FXX]

I trade news all the time and it has consistently produces 10 to 20 percent a month for the last 18 months. I trade the spikes as they happen and getting the direction right is a matter of doing research, not guess work.

 

[Andy4rum]

This is great to read all comments and get some useful ideas or point of view on that trading way. Anyway, lately, focus on news mainly + some auto tools just for a fun and testing.

so, very nice - simple and powerful! See attached
can't attach zip file. sorry
page: http://www.dmurakami.com/eanews4u.htm
no email/registartion - just clear download

I'm quite happy with that tool... but want to ask some modification... first of all, since I'm out quite often - want to get it for
2-3 news... + lot2x options... since I get a loss - next trade will be with higher lot... but this is one time option - than lot gets
back to normal.

Any ideas what else may be useful?