Trading the news - What to avoid, what to know, and how to trade with it - Page 107
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Thread: Trading the news - What to avoid, what to know, and how to trade with it

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    Trading the news - What to avoid, what to know, and how to trade with it

    dear fellow members of forum,

    in this opportunity i'd like to share some trading tips for you according to my little experiences. this might be useful for traders who seek for market truth and i'm so sorry if this topic may not appropriate for experts because this actually intended for beginners to advanced struggling traders. hereby i'd like to receive all the critics about this thread later.

    description

    in forex trading, we often read about news trading. what's that all about anyway? briefly, news trading means we're trading by reading news information and gather all data to get the conclusions later. many traders specially those who believe in news, they take news as long term cause which move the market. but remember, understanding this fundamental analysis isn't as easy as it looks.

    what to avoid?

    1. other people's thoughts on any forum discussion. believe in our own analysis and understanding.
    2. many opinions from experts about news could be a trap, exercise caution and don't believe them easily without self-analysis.
    3. only take high impact news for better volatility which usually indicated in red on many news calendar.
    4. avoid news trading if you're not certainly sure about what you read.
    5. only trade when you sure the market become dovish or either hawkish.
    6. don't gamble with news with random trades.
    7. avoid using indicators because they may not work properly during the news release.


    what to know?

    1. news is full of surprise and may cause instant movement within seconds.
    2. it's hard to take orders during news release due to market highest volatility.
    3. pending order works fine but sometime it may costs us some missing pips of opportunity.
    4. the rule of "history repeats itself" isn't always happening with news trading so be careful.
    5. always pay attention to current currencies growth and weakness.
    6. focus in long term progress, not in shorter term.
    7. take times to understand about the same news with its different movements yet the same result.


    how to trade the news?

    1. choose which news we want to trade. example, i want to trade with today's official bank rate of gbp. i use the calendar of forex factory.


    2. analyze the previous result and make some reviews about couple releases back. and don't forget to read another related information below.


    3. make some comparisons between previous releases. gather the ideas later.



    4. look at current price movement, mark the release hour to ease our trading.


    5. later when the time comes, set pending order with buy stop and sell stop 20 pips away from current market price.


    6. let the market runs for you and you can either set the take profits based on your money management or cut the trades later directly by yourself. it's up to us.


    notes:
    1. practice this method many times and experience many news trading in demo first before using it on real market.
    2. stop loss amount may vary and try to set it along with the pending order. try to set the stop loss amount by risking 20 pips only.
    3. never trade the news without stop loss.
    4. i don't explain about how to place the stop loss because i think everyone already aware about the risk of trading. anyway, i also wrote it on my 2nd point above.
    5. stay patience because the reward may be greater good with only by risking only 20 pips.

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  2. #1061
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    Quote Originally Posted by Giedra View Post
    I do not think that somebody may have good strategy to trade the news. Of course, there is strategy with pending orders but it is not perfect and many traders lose money using it because there can be spikes both sides. Only fundamental strategies can be good to trade the news but there are very little traders able to analyse fundamentals well.
    There are good traders who earn great profits with the news trading. But they are able to that based on the experience they have in implementing fundamental analysis. We can go with fundamental or chose to use the chart patterns but the thing is we should be able to study the market through them. News is a risky one, and I think it also is not suitable for all and so it has to be decided what is good for us.

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  3. #1062
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    Trading the news requires some level of mental strength from the trader and to be alert too,depending on the style of trade,some traders like to set pending orders both ways why others prefer to wait until the news is release before jumping in,having a good knowledge of the previous data and what is expected is also very important.

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  4. #1063
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    Without mincing words sir, news trading is one of the fastest way to make money from the forex market when you compare it to the use of the technical trading. Most time, the speed at which news trading can grow an account when it is positively done can never be compare to the way a technical trading system will grow our trading capital. I woulds have love to be a permanent news traders because of the quick money from it, but the risk involve in news trading can be scaring.

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  5. #1064
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    Actually, when it comes to trading the news, it will be complicated, I have been in that situation of trading the news and it wasn't funny, same reason why I will not advice any one to decide on trading the news as the news trading has carry a lot of risks and as a matter of fact, those who trade the news are more doing it the gambling way, I will not want to have such approach been used.

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  6. #1065
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    Avoid news without preparation, many times we think that because there is going to be volatility, it definitely guarantees that we will earn from the news, despite this understanding, we still trade with bigger lot, this is where the real danger stands, news trading is always done without analysing well, we think we can always guess right.

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  7. #1066
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    Quote Originally Posted by Leonvic View Post
    Avoid news without preparation, many times we think that because there is going to be volatility, it definitely guarantees that we will earn from the news, despite this understanding, we still trade with bigger lot, this is where the real danger stands, news trading is always done without analysing well, we think we can always guess right.
    With a whole lot of preparation, I don't think the trader will be able to trade the news successfully. I think the traders that are now successful are those who has learned and known the way they can trade with the use of the technical trading concept, news is like gambling, you are only banking on what you read and not what you saw on the chart.

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  8. #1067
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    I used to be a news trader, but after some experience I got trading the news, I have stopped making use of the news trading method. I now focus more on the use of technical trading means . A lot of us wants to make money from the market. But we need to know that it is not always the right thing to want to make use of the seemingly fast way of earning, things doesn't work that way.

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  9. #1068
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    When you are trading the news, you should avoid over trading and avoid greed, when you make money don't jump to open another trade because you think the opportunity will slight you by, there is always opportunity for us to make money, so we should avoid over trading and greed this will help us to trade news properly.

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  10. #1069
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    I know about news that it is the most risky way for trader to work with it , i do not always like to work with news this is really very stressful when market have some other direction in market , news trade sometime give us good opportunity to earn profits in market but most of time we face big losses due to poor planing and management .

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  11. #1070
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    Quote Originally Posted by lucy View Post
    I know about news that it is the most risky way for trader to work with it , i do not always like to work with news this is really very stressful when market have some other direction in market , news trade sometime give us good opportunity to earn profits in market but most of time we face big losses due to poor planing and management .
    Well i will not agree that news trading is the most risky way to trade in this market,i have been a news trader before and i can confirm it is very easy if the trader understands how it done,first is to stay away from low impact news that does not move the market at all,if we concentrate on high impact news we can easily make it.

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