Help - trading the news

hi,

i am interested in trading the news as a sure way to get pips.
Pipsology college they gave a few warnings but they seem not to apply to me.
my broker does not put out an Order Freeze, and i have a guarantee of fixed spreads & execution.

my questions are:

  1. is it a sure thing?

2)were could i find out how much the difference in the trade will affect the market (when should i close the deal, is the market in a strong up/down trend of a few sec or min)?

  1. lets say the news release is on the USD. should the USD be the primary or secondary in the pair (does it matter)? which pair should i buy/sell (is there a difference in impact on different currency pairs)?

thanks for your help,
Kickeru

Hi kickeru,

Which broker do you use, which guarantee you fixed spreads and fast execution during news release? I wonder how do your broker guarantee you that everything like your spreads and order execution will be the same during news release periods?

2)where could i find out how much the difference in the trade will affect the market (when should i close the deal, is the market in a strong up/down trend of a few sec or min)?

I do not trade the news but to me news are unpredictable, it can move the market in different directions. For example a piece of bad NFP is predicted to bring down the GBPUSD due to risk aversion but in the first few mintues after the NFP is released, the GBPUSD can suddenly shoot up 50 to 100 pips then move down again after a few minutes.

  1. lets say the news release is on the USD. should the USD be the primary or secondary in the pair (does it matter)? which pair should i buy/sell (is there a difference in impact on different currency pairs)?

For example the news release is on the USD, it doesn’t matter to me which is the primary or secondary. To me, a piece of USD news release can impact all the currencies out there. If a news release is said to bring down the EURUSD, it will bring up the USDCHF as they are correlated.

I hope you can reconsider trading the news as it is not a sure way to bring get pips. To me trading news is the most dangerous way to bring in the pips. :slight_smile:

Don’t go around thinking that your broker guarantees these things unless you’ve gone through all the fine print.
Not at all impossible you’ll find a paragraph saying that there’s some sort of exception during times of high volatility.

Just my view, but trading the news may be the fastest way to empty your account if you’re a beginner. From your question I’m guessing that you are. So am I by the way, and news trading feels much to risky for me.

As for impact, all dollar pairs would be heavily influenced by dollar zone news.

Forex Factory provides a news event list which color codes the expected impact of the news event. Check out their site.
Whether USD is base or counter currency in the pair doesn’t matter, think like this: EUR/USD: good USD news would cause the pair to move down, USD/CHF: good USD news would cause this pair to move up.

If you’re uncertain in these basic matters, for the love of God - don’t try to news trade! This isn’t a get rich quick thing. Trading Forex is hard and you better understand that or you’ll bust out fast.

Best regards

Just so all know, I have been spending my time researching news events of different types, how they affect the market, at what percentage they affect the market based on percentages of predictions, the whole nine yards so to speak.

I have made it back to 2007 and am still computing.

The business I own will eventually have a webpage where this info will be available to all, at a price ofcourse, and being as I use this info myself, it should be an extremely profitable tool.

More to come at a later date and time…

Good pippin,

Chubs

I would suggest, if you feel you must trade the news, watch the news and trade the pull back.

Personally I would not trade the news. But I am still in my first steps.

What gives me that point of view?, contradictions like these:

yes but eur is not just affected by the news coming from euro zone. could be the ez news were bad, but may be us news were worse. Not a proponent of news trading-I would rather wait for 4-5 hours before the things calm down.

while im certainly not gonna go thru it yet again, a perusal of my thread will reveal some startling, informative and pretty danged well guaranteed ways (i simply dont know any others) of trading the news !

you simply follow the flow and pretty soon one is standing on the yellow brick road, although the color is closer to gold than yellow !
[B]
DONT LET ANYONE tell you its dangerous or forbidding or horrible[/B] — all that means is they simply cant SEE what is going on — with a few simple rules (based completely on time to get in, which direction, and time to exit) you can be as good as the best of the desk traders out there, being a few pips behind since they move faster, of course !

“mikeys militia” proves it daily, and you wont need a website (pay per view no less — ya know chubbs, i KNEW this is where you were heading, i just KNEW it !)

in fact, once ya get the hang of the whole thing, trading itself aint no real deal — two buttons and one decision and then trust your ideas !

enjoy and trade well

mp

[I][B]Within the great hall at Elfinore stands a wondrous coffer, precisely four cubits square and securely latched against the outside world. Inside that repository, shut away from impertinent eyes, abides many an intriquing trading secret garnered from around the world and over the ages !

As a child, i used to watch from the darkness as the secrets were debated and annotated by the elders. No one there held a single thought of my presence – BUT I KNOW WHERE THEY HID THE KEY !![/B][/I]

Be very careful or this can quickly turn into a technicals vs fundamentals debate which I must say can be very entertaining for those that have been trading for more than 6 months. But, it can also lead to considerable confusion for newbie’s who having started down a path of learning to trade a specific time frame and a setup now think there is something more behind another curtain.

The fact is news events are nothing more than a blip on the radar screen for position traders. In other words it is a non-event. On the other hand for a daytrader/scalper a major news event is like a grenade with the pin pulled. Survivors are always in their fox holes wearing body armor.

enjoy and trade well

mp

thanks for the fast replies.

Ray_1 to answer your questions: i am trading with the ‘StartForex’ company (::: StartForex ::: Home). i will double check with them about the guaranteed spread during news releases.

as you all guessed it, i am very new to this business. i did take a month to go through school (pipsology of course!) and read all the warnings.

i was asking about scalping. Argentum chart is an H1, i was talking about a RED flag news release (from forex factory) where the price shoots up for a minute or so. i had placed a follow stop at 15 pips and got a 45 pips gain within a minute. is something like that unusual or should i continue trying to scalp those precious seconds after major news releases?

the quick and dirty answer is that WHAT THE PRICE WAS DOING PRIOR TO THE ANNOUNCEMENT will determine what the price does AFTER the announcement.

if the price has been going up all night, it is because traders will want to SHORT after the news, but they wont do that until they get the price UP to major resistance, which is usually the H1 resistance point. at that point, and usually within a half an hour, they will REVERSE the price and spend the rest of the day shorting it, allowing it to recover 2.5 days later !

there are specific times of the trading day when these reversals occur, but occur they do, so bottom line is what youre doing (as long as you get out quickly) is correct, although it would be best if you watched the market now, armed with what ive said above !

enjoy and trade well

mp