Trading news- need help

Hi guys, I need help regarding trading news. Some people I follow on facebook knew if Trump becomes president of America that USD will go bearish(or bullish i don’t remember anymore). There are NFP news and some people only trade that and are very profitable so my question is hwo do you know where should market go before watching news? How did so much people I know earn so much money on Trump becoming president news? I am thinking about trading news like waiting for big news and waiting for market to start rapidly moving and entering trade with it or “catching the train”. I would appreciate any help for those questions, thank you!

Jumping in ahead of news is gambling. It looks like a genius at work - until the news is not what was expected by the market, then you can lose your account in about 5 seconds flat.

NFPR’s are every month, US Presidential elections are every 4 years - there’s plenty of time to join the market in the right direction after the news has been released.

I don’t want to disappoint you but it doesn’t work that way. Once you are able to see where the market is going it is already too late. I mean you will be able to place a trade during that rapid move (if you are using 100% STP/DMA broker) but most probably you will get slippage because of spread widening at the opening exactly because of the high volatility. That doesn’t mean you will never make money out of news trading when you open during the release. You just have to be prepared that the market could not always work in your favor at that time.

Well you better ask them yourself if you know them. Because like tommor said trading during news is really risky and can easily empty your account.
Cheers and good luck :wink:

Welcome to the forum.

With apologies for sounding negative, what you’re asking about here is a way of stacking the deck even further against yourself in a field of endeavour which has very low overall success-rates to start with. :8:

“News” is both one of the most difficult [I]and[/I] one of the most dangerous approaches (each for various different reasons which unfortunately need quite a lot of experience to appreciate), for aspiring traders. :33:

I wish you good luck but strongly recommend a different approach.

On the day Trump got elected the Market moved violently up and down, Shot very high up to 1.13 which was the 200SMA on the hourly chart (or was it 4 hourly? can’t remember) and then promptly shot down and kept going down.
Now this would trigger your stop loss or even wipe you out if you sold initially because you ‘knew’ something.

Making money in the market doesn’t equate to knowing what is going to happen next, there is a lot more involved.

You will probably get as many answers as you will on strategies. There are many ways to look at this. The markets have been shaky since Trump got in. I listen to the news, Bloomberg and some FX trading sites to get other opinions on what other traders are doing during shaky markets. You can get a retrospective look from others in the field as to whether you should trade or not. If your new, I would not trade during shaky markets. Fundamentals are still key in shaky markets. I to have been watching the Markets since Trump got in, and there was a lot of consolidation, annalists were saying the dollar was strong then it went down, then it went up then long consolidations. I look at several time frames, from weekly to 1 minute or less. Stops might be a bit more problematic with uncertainty in the markets. One long term perspective on the Dollar was to short it from a large bank exec. I say long term because I assume it had to be because when i looked at the hourly chart on Eur/Dollar not long after he stated it the Dollar went long on the hourly, of course hourly is not long term, but you got to expect these type of changes. I am a little contrarian on Fundamentals or when annalists or experts give there predictions. Usually the fundamental news like the Fed statements or GDP or CPI, Housing stats, Employment reports, is what I look at. But during shaky markets I have to separate the wheat from the chaff. My opinion only. Hope it helps a bit!

Thank you for your help and your time writing this, I understand things better now

Trading during news is not for everyone. You should have a significant experience but sometimes even that can’t help you predict the market movement. If you don’t have enough experience then it will be just gambling. You could consult your friends but have in mind that other people’s strategy may not work for you the way it does for them. Better to make some research and check the websites in which are published the upcoming news and events. Good luck! :slight_smile:

Watch one of my videos to get a basic clue on how to trade news BoE Rate Decision (manual news trading)

How do you know which pair to trade with which news? There are lot of high impact news, do you just trade just particular ones like NFP or any high impact?

By reading posts #2, #3, #4 and #5 above, listening to experienced, successful traders, [U]thinking about why they’re all telling you the same thing[/U], and [I]learning that it pays to avoid all pairs at their “news times”[/I] … rather than just selecting and paying attention to the answers you already wanted to hear when you asked the question and ignoring the “inconvenient” responses that don’t match your own mistaken initial perceptions of the subject. :wink:

Ouch!

Nobody better get on the wrong side of lexys today.

Eew, was I “too outspoken”? Yes, I suppose I was. I apologise - that wasn’t my intention. Occasionally I still say exactly what I’m thinking without “filtering” it first - please excuse me, Prezdogan :8:

Talking heads, NFP, political events, EIA, API reports (for crude oil) a lot of other events I can’t reveal. But be careful watch price behavior at least 4-5 days before the event because reaction can be different due to different pre sentiments. Last NFP projected at 175K while actual was 237K way higher than expected still US Dollar rose not so much and even declined later because all eyes were on Trump. Surprise - is what gives a BIG move for the market.

No, you were right. There’s too much *****footing around here, far better to speak out even if it upsets someone so long as it’s done for the right reason and isnt personal or abusive

News trading seems to be alluring, but in reality it is not so. Like others say, spreads widen during this time because of high volatility in the market. For predicting how the market will react after the release of such major events, you need a well experience in this field. Also knowledge about the fundamental concepts, economy and how these affect the price movements are of utmost importance. News trading can help you earn good profits but at other side if market does not turns in your favor; your account can be blown off within seconds.

When I use the news I use it to gauge the market. If your new to fundementals, and that, basically. is what news is. Fundementals. Start by watching Bloomberg, they have lot of information on what is going on in currencies. It’s cheap if you have cable or digital. Then start checking your charts to see how your cycles, trends develop. How the news effects the charts. As far as trading the news, that is a different story. I use fundementals as a gauge, to help in looking for strength and weakness in the market.

This may come as some surprise, and I fully appreciate others disagreeing with what I’m about to say!

In most instances, not all, but most, you can identify the market “winding up” towards the bigger news releases. What I mean by this is that you can at the very least ‘see’ where the market is expecting price to go after the news has occurred, in real time.

There are countless occasions where ‘price’ has moved against the news and also with the news. I should imagine if you had access to real order volume this would be confirmed - most of the time.

Essentially, this comes down to experience. I for one do not let the majority of news announcements hinder open trades, or pending orders.

Actually I agree, the market often prices for information that has not yet been released, even for events that were not on the economic calendar, but the point is some event or other would have occurred which confirms what the market thinks.

Although we put a lot of store in central bank rate announcements, their meetings’ minutes releases, NFPR’s etc., it is rare for these to mark reversals, [U]at least on a daily chart[/U]. NFPR’s are a classic example, usually released on the first Friday of each month - its impossible to consistently pick these days out on an unlabelled chart of USD pairs.

Yes, this sums up exactly what I was trying to suggest with a useful example.

Take the date and times off of a USD chart (GBP/USD for example), and everything would look like [I][B]typical price action[/B][/I]. I’d be interested to see just how many traders could label the major news events just by looking at these naked charts - I’m sure we would all get it wrong if presented with a months worth of unlabelled data!

Yes, news does move the market. However it does not move the market from totally random levels of price - rather it all still falls under the category of Technical Analysis (TA).

I guess in it’s simplest form; support prior to news suggests an expected bull market reaction, while resistance prior to news suggests a bear market reaction. The reality is, of course, that it is not quite as black and white as this.

Paradoxically, TA can in it’s own right be [I]over applied[/I] to make even the most random of data seem logical. With this being said, there is clearly a fine line between using TA over and beyond it’s true benefit.