where do news traders get their info from in time to trade it without being too late?
Ive looked at a couple of sites like reuters, but by the time anything appears on them the action has usually already happened. yet a lot of people seem to complain about spreads increasing, missed stops etc etc so they must be getting the info a lot faster than i am to be getting in there that quick.
getting calendars of the news events is not a problem, its getting the results of those news events quick enough to trade it.
Most traders don’t trade off of the actual results of a news event, by that time it’s normally too late unless you’re an insider (like you said). I believe most news trading is actually speculation. Unless you are actually at an event, there is no way to take advantage of the true results in time.
Well the professional Bloomberg and Reuters feed will cost you several thousand a month with the need for extended contracts so I assume that you havent got that otherwise you have the Rolls Royce of feeds as they are actually present in the lockdown when the figures are released. Trade the News (live audio feed) is a reasonable one at about $150 per month
I dont tend to trade the news directly but yes it would give your trade a boost as long as it goes in the right direction! That is the problem though. What moves the market is a number of factors including the actual figure, the expectation of the market and where we are at technically although technical levels can be blown away by some news items
Well since news usually moves a price a good portion of pips wouldn’t it be possible to make some easy money with a method some options traders use. A covered call. Own equal sized long/short positions of said currency and when you see where the breakout is headed, dump the losing direction? If you really want to trade the news I would assume that’s the best way to do it. But yes, Bloomberg & Reuters are what the guys in the pits use. That and txt msgs on their cells
ive tried placing market orders either side of the current price by about 20 pips just before the release thinking itll just trigger whatever way it goes. but it seems to have a nasty habit of flying up and triggering one, then flying down and stopping out, triggering the lower at the same time, then flying back up and stopping out again. got screwed in BOTH directions at once, couldnt sit down for a week and havent tried it again since.
You have to get “in the flow”. If price going up, buy. If price going down, sell short. Note where the price stops and reverses. Quickly take small profits.
Hi ewokuk, Without any idea which direction a currency pair may go as a result of a Fundamental (News) announcement, one is taking a huge gamble when setting up a straddle prior to the the announcement.
Has you may already know, some governmental news announcements come with what had happened the last time and also what the market is predicting.
When the prediction is wrong, the market may move in huge strides, that’s why many traders say it is dangerous to be in the market when the news is released.
If you have a fairly good idea how an FA will affect a currency pair, positively or negatively, then after seeing what the FA is, there is a possibility of the market reacting either positively or negatively.
Example:
US housing starts which come out once a month at 8:30AM ET. The prediction is 950K since the last report, however it comes out at 1,000K
housing starts - big surprise to the market, good for the economy, good for the dollar, USD/JPY spikes way up, and may continue up for some time.
If you know within minutes what the report is, you will have an opportunity to get in, in the right direction.
There is a way to get that report within a minute or 2 for free, FF calender has a button that comes up about 3 or 4 minutes prior to FA reports that you can press on at the moment of the reports release, and then within 1 to 3 minutes, the result of the actual report comes up.
Very helpful indeed - hope this is of some help to you. Regards
