There is always some news every hour of the clock. Now with all the information out there, it’s hard to see which news actually affect the market move and which don’t and if I have to read all of those 100’s of news everyday without missing even one. How do you guys follow news and know that the news has potential to move market or just another information available online. I’ve been confused on what news affects market and what don’t, always keeps me stressed like what this news might be and how the market react to it.
It is easier to trade based on the techical analysis that do not involve reading all news.
It is not possible to read all the news and act based on the news results. To much news to incorporate it in your trading decision.
I do not watch to much news. I am following them and checking what happens after they are released.
Based on that I see what the market tells me.
So you only follow the economic indicators like GDP, Unemployment etc and ignore daily news unless it’s some unexpected events(eg., US bombing Iran)? Also How does political news affect moves?
Hi, don’t worry about the news. Just trade your setup and manage your risk. Analyse your trades every week. If you find that you lose on a certain day or certain time then part of your analysis would be looking for a reason. For eg you always lose on nfp data release then as part of your trading plan you would not trade that day because your analysis tells you.
I go with 4 hour time frame and above and hold position for days, I use technical analysis to check trade and then check a little news on what people sentiment are. As I see there is a event atleast every 2 days, How can I trade in such situation?
P.S. I don’t day trade.
Wide stops taking account of normal volatility, such as 1 or 1.5 x ATR20 should ensure you are not stopped out by price noise and wide stops around news announcements. Removing or widening your stop around news announcement is a temporary solution - but increases risk drastically. Closing a position around news announcements is a way to ensure 100% freedom from loss - but you also might miss opportunity.
As for adverse news (to your position’s direction) remember that most bad news emerges in downtrend, most good news in uptrends. There’s a pretty obvious implication - ensure your trade is not against the underlying trend.
Also, look for correlations. If you are long USD/JPY, then a Bank of New Zealand interest rate announcement is not going to be interesting. But CHF and JPY correlate. The Dow and AUD correlate. AUD and NZD mostly correlate. EUR and CHF correlate. The Dow and JPY negatively correlate. CAD and oil mostly correlate. etc.
Just trade as you do. Then analyse how often the news affects your trades. Generally data release moves reverse back in favour if the bigger trend. However if you keep getting stopped out you may have to consider your trades are against the trend or stop loss is not far enough.