Do you trade with an eye on a news feed?

Beginner Questions
1

I’ve seen important event calendars but what’s the fastest way of knowing the outcome of these events?
Or is watching the charts the best way of seeing how the market interprets the news?

2

Hi Altar

Read all the headlines -particulary those directly related to forex, read daily and weekly outlooks, Forcast, Follow the indices of the leading markets (e.g Dow Jones, NASDAQ…,)

4

or you can just use technical analysis and forget about the news…

5

I believe that it is news that ultimately leads markets and actually technical analysis has no value. MACD’s, SARs and all the rest are no use when a breaking piece of news comes out that has high market impact. If a high impact news item comes out there is no way any technical indicator can save your trade if the news is negative to your position. With technical analysis, sometimes you get lucky and get a good month, but the next time you get hit and over a period of time all the profit is eaten up by the pip spread taken by your broker. A bit like going to the casino. No wonder brokers offer all these fancy courses in technical analysis - it’s it their interest to do so, as our loss is their profit !

7

well I am daytrading and in regards to technical analysis I can tell you that indicators surely can be wrong but theres more to techinical analysis than just indicators. If there’s a strong trend and a major news comes out its highly unlikely that its going to reverse at all (or even start trending sideways) for the next few hours(at least). Main chart patterns such as Double top, Head and shoulders will continue to form no matter what news comes out.

8

It’s important to know what’s going on with the fundamentals while trading. A interest rate decision or NFP report can really mess up your technicals if you don’t know what’s going on.

Paco

9

maybe not completely on thread, but have you ever done back testing with your technical system of choice and considered the “news events” in your back testing results?

I know of technical traders who disregard the news completely. It does not feature in their systems. When you backtest a system and it “works”, it is often incorporating the news events in that bactesting results.