Why do you not trade using news?

JP1966 said:
Blimey there is some rubbish written here. I have traded news for 20 years, even before you could do it on the internet and had to call for a price. Sure the price reacts quicker these days but you can still trade it.

To the oh so special Black Swan. When the gilt auction failed then Uranus might have been crossing Pluto at the time signalling a buy but no way in the world was I not selling sterling. Look at the ECB this week. Both fx and euribor etc moved on the less than expected cut and then reacted to Trichet's words once the press conference started.

How anyone can claim the price action was not in response to the news is beyond me.
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A fine post, if I may say :)
 
JP1966 said:
What a shame.

Despite all the evidence being visible on the charts Black Swan has chosen not to post a single bit of evidence supporting his claim.

How odd.
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Strange how a thread often takes on a 'direction'. I have stated that IMHO trading news singularly is not viable (for me). I'm sorry but I'm not about to post up charts and spend time to 'prove'/score points.
 
GammaJammer said:
Several reasons why many choose not to trade news;

i) They don't have fast enough access to infomattion
ii) They don't have access to the right information
iii) They don't know enough to interpret the information
iv) They don't have access to robust enough pricing
v) They trade in such a way as to make it suicidal
vi) It doesn't fit neatly into the world of 1 minute charts overlayed with 27 different indicators.
vii) In summary it requires a little more of an investment in time and knowledge in order not to over expose yourself to risks you don't understand.

Personally I don't look at it like that. For a start, market moving news can happen at any time, so whether you like it or not occasionally you're gonna be sailing along in relatively calm waters and suddenly you find yourself carried along by a tsunami. At that point it's already too late to decide you don't want to 'trade the news' you ARE trading the news. So you better just deal with it.

Secondly, I think that most people out there are smarter than me, so while I will look at any major news story, be it geopolitical, fundamental or whatever and have an opinion of my own, I will also look at what the market's reaction is. The stronger the theoretical direction a news story should point it in, the more significant it becomes if that's not what materialises price wise. So this stuff can give you a huge clue to positioning etc. And while this type of fuzzy, non linear analysis is harder to do if you're not sitting in a large dealing room, it's still possible on a smaller scale. I just think that a lot of people use short term technical trading as a crutch.

Small rant over. Have a good week everyone.

GJ
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What an excellent post.
 
The method of news trading is fairly easy. It is the trading of foreign currency right away previous to or after a significant financial news statement. After such statements, there is a lofty opportunity that market prices will vary, also for the better or worse, depending on the broadcast.
 
jeffsmith said:
The method of news trading is fairly easy. It is the trading of foreign currency right away previous to or after a significant financial news statement. After such statements, there is a lofty opportunity that market prices will vary, also for the better or worse, depending on the broadcast.
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You have cleared that one for me...
 
GammaJammer said:
Why thank you Tony - I'm thinking of submitting it for possible consideration as the GB entry in this year's upcoming World 'talking a good game' championships.

I have a feeling the competition however will be pretty stiff. Possibly needs around 5-10% more hyperbole to be in with a decent shout at a podium placing. What do you reckon mate? ;)
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You know me son, if you're after hyperbole and pure BS - I'm your man.

5-10%? Christ!!! I don't know where I'd start getting my posts down to that level....
 
jeffsmith said:
The method of news trading is fairly easy. It is the trading of foreign currency right away previous to or after a significant financial news statement. After such statements, there is a lofty opportunity that market prices will vary, also for the better or worse, depending on the broadcast.
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So you're saying they could go up or down, before or after the news?
 
The news deal is a no deal for me and my ES NQ intraday....the system's clear identification and entry signals during trends and at the apex that each one begins and ends with is the cat's meow...now that is good news...learn to read candles and the few "patterns that never change" at the apex and the trend continuations. The traders at that level are few and far between. Why? Because most want someone else to do the work for them. If one works hard enough to attain that level he/she is not going to give it or sell it...only trade it... TA is the only news for me......
 
fomc is only news i wish to be aware of and it is not killer as if i am in a trade i will set stop immediately. and my platform is quick...
 
Trading the news is being an accepted method to trade the Forex markets. Day by day again you see currency pairs move 50 to 100 pips within some minutes or even seconds subsequent to a major news release. While you see that, I put money on you’re thinking, “OMG it was 50 and now it is 100 pips. That is the easy way of making money.” Might be possible that it is and might be possible it is not. It all on how geared up to trade a news release.
 
I think it's dow theory thet states that trading news is impossible because all news is already reflected in the values shown in markets. If anthing you're probably trading the correction, the trend of the masses or maybe just getting lucky lol.
 
yes wait best...thinking is bad...emini intraday...thinking is real bad once the system is developed the thinking should be reflected by the system only in the form of entry signals...or signal...news is is like s/r and volume...you can see those by reading the candlesticks/severity of angles/p;atterns both bar and line patterns....and crossings...so they lag? not when they reach peak retracement..they lead......
 
news is old hat by the time public gets it........posters here are the public...
 
i trade eminis only intraday......no intranight........i have discovered that market goes up buy market goes down sell......think i might patent that so others cannot play like I play...market can only run or rest...run with it and rest when it rests u do same and all is happy time...
 
this forum is dead but here is jewel......buy low sell high with trend using point target exits..best simple system one can use.....trend is your friend apex to apex...45 degree angle tells the tale...[anyone know what the apex is.????
 
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