Buy The rumor, sell The News

[pipguardiola]

I wonder about the jargon: Buy The rumor, sell The News

Is there anyone could give some link or source in where we can mastering that technique?

And, Buy the rumor, DOes it mean that the forecast number in forex news as important as the actual one?

Greeting

[PipNRoll]

I wonder about the jargon: Buy The rumor, sell The News

Is there anyone could give some link or source in where we can mastering that technique?

And, Buy the rumor, DOes it mean that the forecast number in forex news as important as the actual one?

Greeting

I think you meant “Buy the rumor, sell the fact”?.. Ive been hearing this from time to time but I just ignore it. If my technical or fundamental analysis doesn’t support why I should be in the trade (my trading plan) then I stay away with it. I would rather be in the stand by position while I wait for my proper entry…Sometimes, I think they are making up some explanation why a particular currency pair moved to get people IN the trade so they get SLAUGHTER later… I don’t know…but maybe others have a better explanation…

[PipNRoll]

Thanks Banker928… that helps…

[pipguardiola]

The big moves come when the market prices in a forecasted event, and then the event is different then forecasted and the market re adjusts to the new fundamentals within a few minutes to a few hours…

If you can see that the market has been aggressively pricing in a specific outcome, it can be profitable to take contrarian trades right before the news release, as the risk/reward to you being right is heavily in your favor as the market will move much more drastically if the outcome is different then the forecast then if it is what was expected… Thereby limiting your losses and maximizing opportunity for profit…

Sorry, I don’t really get it…

for instance, forecast data is showing good for currency
and the market had already taken their position regarding that data (buy)

you mean
just before the news, we should take the position contrary with the market
(in this case, we sell)
and hoping actual data much different than forecast?

Thanks

[margincut]

I wonder about the jargon: Buy The rumor, sell The News

Is there anyone could give some link or source in where we can mastering that technique?

And, Buy the rumor, DOes it mean that the forecast number in forex news as important as the actual one?

Greeting

it’s just a sentense ))))) don’t think about it too much

[PipNRoll]

Sorry, I don’t really get it…

for instance, forecast data is showing good for currency
and the market had already taken their position regarding that data (buy)

you mean
just before the news, we should take the position contrary with the market
(in this case, we sell)
and hoping actual data much different than forecast?

Thanks

I think banker928 explain it really well of what you are asking about. It takes experience to take on contrarian trades. You have to really know what you are doing because it can be tricky.

I think this is the least trading strategy that you have to worry about for now. Maybe in the future with a lot of experience trading the fundamental analysis then you might see it unfold…

[dennis14685]

I think banker928 explain it really well of what you are asking about. It takes experience to take on contrarian trades. You have to really know what you are doing because it can be tricky.

I think this is the least trading strategy that you have to worry about for now. Maybe in the future with a lot of experience trading the fundamental analysis then you might see it unfold…

i believe more traders focus on the technicals during news i just go with the 200 and today i did in most part , it does not work everytime nothing does but this will give you a foot print in the right direction… ok nothing is 100% use this with any combi

[dennis14685]

one more …but there are many more if you check todays charts

[dennis14685]

aud cad all today… basically most traders are alphas, they really do not like to listern to someone elses fundamental assesment, they will go with what they see in front of them, late hangovers then a early morning start in the city after catching the tube, does not ring well with studying fundamentals with your morning coffee and blasting hangover, they are pressured to get there money in the market so they do …if they aint trading they aint making money…so they spread it out on mutliples pairs… ie price above 200 short, price below long…glad to get that out the way…thats all i do…my appetite is for 5 pairs 3 will win min. sometimes 5 out of 5, today was 5 out of 5…ATTACH=CONFIG]33484[/ATTACH]

[pipguardiola]

Thank you very much dennis, let me learn and understand your post, it seems enlighting