I don’t get it. I really don’t.
Virtually all profitable retail traders say ‘retail traders should not try to trade the news’. And yet, like a moth to a flame, a constant stream of new traders want to trade the news.
From Dr Elder’s The New Trading for a Living (emphasis mine):
Chaos Theory has achieved prominence in the recent decades. Markets are largely chaotic, and the only time you can have an edge is during orderly periods. In my view, markets are chaotic much of the time, but out of that chaos, islands of order and structure keep emerging and disappearing. The essence of market analysis is recognizing the emergence of orderly patterns and having enough courage and conviction to trade them. If you trade during chaotic periods, the only ones to benefit will be your broker, who’ll collect his commission, and a professional day-trader, who’ll scalp you.
The key point to keep in mind is that once in a while a pattern emerges from chaos. Your system should recognize this transition, and that’s when you should put on a trade! Earlier we spoke about the one great advantage of a private trader over professionals—he may wait for a good trade instead of having to be active each day. The chaos theory confirms that message.
If you don’t believe him, consider Anton Kriel, who makes it clear that retail traders trying to trade around news events are the liquidity that the institutional traders use to exit the positions they set up in anticipation of the news. They are, by design, the people left holding the bag.
I’m not trying to be mean. You clearly have a passion and an interest for this. But I really don’t see this approach working out for a retail trader in the long run.