How do you specifically get your news?

Trading Discussion News and Economy
#1

Very new to this jungle like world of Forex. I have observed that the “news”, that being any type information which dictates a traders decision on when to get in or out on a trade, seems to be the one major tool. (Please correct me if I am wrong on this assumption. I also realize I am leaving out strategical practices which include technical analysis and chart patterns memorization.)
If my assumption is correct about the news and its ability to make a trader decide one way or another about a trade, then I would be much appreciated if someone could point me to their personal favorite news or media outlet(s) which helps them conduct/decide trades.
I have heard of one called “RanSquak” but after a closer look I realize it is decently expense and me being a VERY new trader there is no way I am going to make such a large monthly investment on something I have little to no knowledge on. If you use or have heard of “RanSquak” could you share your thoughts?

-Thanks

#2

Hi.
I would strongly advise against any newcomer trying to trade around news.
Spend a few months at the free school right here, take ALL the quizzes, continue reading threads here, and at the end of your studies you will be better able to develop a strategy and trading plan
Regards

#3

I think you have to be careful about news trading. There are perhaps two different approaches. The first is to generally follow quality publications and relevant articles and form your own opinions, and the second is to follow (or subscribe to) the trading recommendations of market analysts that do the research for you.

It is important to remember that news/data releases are usually “after the event” in that the market will have already absorbed the general market consensus on what the results should be. Of course, it is not possible to know the details in advance and therefore trading individual releases is quite akin to gambling.

Also, one economic data release or stated opinion does not make a trend and can, in fact, often contradict the general direction of a currency trend. This means that trading fundamentals should really be a long term positional type trade that also requires larger stop loss tolerances to avoid being stopped out prematurely by frenzy trading following such “reverse” type releases.

If one follows a market analyst trading recommendations then it is worth remembering that no one is right all the time and blindly following all recommendations is not likely to produce a good result in the long term. However, these may help if added to one’s own analysis by highlighting information otherwise overlooked or by identifying possible support/resistance levels. However, the risk is that the more sources you listen to the more confusing the overall picture will become.

Technical analysis is a very good method of measuring what the majority of market participants are actually doing and, if you can successfully identify the direction, then you can simply join in - then the next issue is where to get out! Technicals again work better on a longer timeframe since markets can happily move up and down 50/100 pips without any particular identifiable reason or purpose - these can sometimes be tradeable but are not based on any kind of news except perhaps as temporary knee-jerk reactions to low-rated news releases or comments.

Maybe a rational approach could be to:

  1. Build your own view of a currency pair based on quality news articles
  2. Look for confirmation of your view in longer term chart analysis
  3. Trade you view on entry/exit levels from shorter TF’s depending on your stoploss tolerance, willingness to leave trades overnight and longer and whether to leave trades through significant news releases like NFP’s

Just a few thoughts…

#4

[QUOTE=“Manxx;740099”]I think you have to be careful about news trading. There are perhaps two different approaches. The first is to generally follow quality publications and relevant articles and form your own opinions, and the second is to follow (or subscribe to) the trading recommendations of market analysts that do the research for you. It is important to remember that news/data releases are usually “after the event” in that the market will have already absorbed the general market consensus on what the results should be. Of course, it is not possible to know the details in advance and therefore trading individual releases is quite akin to gambling. Also, one economic data release or stated opinion does not make a trend and can, in fact, often contradict the general direction of a currency trend. This means that trading fundamentals should really be a long term positional type trade that also requires larger stop loss tolerances to avoid being stopped out prematurely by frenzy trading following such “reverse” type releases. If one follows a market analyst trading recommendations then it is worth remembering that no one is right all the time and blindly following all recommendations is not likely to produce a good result in the long term. However, these may help if added to one’s own analysis by highlighting information otherwise overlooked or by identifying possible support/resistance levels. However, the risk is that the more sources you listen to the more confusing the overall picture will become. Technical analysis is a very good method of measuring what the majority of market participants are actually doing and, if you can successfully identify the direction, then you can simply join in - then the next issue is where to get out! Technicals again work better on a longer timeframe since markets can happily move up and down 50/100 pips without any particular identifiable reason or purpose - these can sometimes be tradeable but are not based on any kind of news except perhaps as temporary knee-jerk reactions to low-rated news releases or comments. Maybe a rational approach could be to: 1. Build your own view of a currency pair based on quality news articles 2. Look for confirmation of your view in longer term chart analysis 3. Trade you view on entry/exit levels from shorter TF’s depending on your stoploss tolerance, willingness to leave trades overnight and longer and whether to leave trades through significant news releases like NFP’s Just a few thoughts…[/QUOTE]

Or just look at a chart and see what happens when the news comes out. You can go back a month. Ask questions like “what happens next” or is the size of the bar relative to the swing you’re trading. Does price break resistance/support? Or does it touch it and continue the trend.

I don’t read news, I read price. Believe me, the rats jump before the boat sinks. Follow the rats.

#5

Much Appreciated.

#6

Thank you for a detailed response.

#7

Thank you!

#9

myfxbook actually has a pretty good news posting segment too nowadays.

#10

All of the above is very sound advice, but most doesn’t really answer the question. So I’ll put my newbie 2 cents in:

  1. I use Yahoo finance and Investing.Com mostly. If you want to trade JPY, reading Japan Today might not be a particularly bad idea either. Generally, any bit of local news that can be found in language you can understand is a plus.

  2. I would start with free sources only. All of the above are free. After getting used to them, get a trial to something that requires subscription and see if what they offer worth the price.

  3. Do not rely on a single source. No matter how dependable it has proven to be in the past, a time will come when it will fail spectacularly. I try to read anything I can find, in the time I can spend for it.

  4. Finally an example. It has no relation to Forex, but it amuses me too much, not to put it in. Exactly a month ago, Oprah announced that she lost 26 pounds. On that piece of news, Weight Watchers stock jumped 22%. Yesterday, (Friday) Weight Watchers announced their financial results. On that pieces of news, the stock fell 21%. My opinion: there is definitely scope in trading the news.

#11

for my news I use Forexfactory,bloomberg,reuters,action forex,cnn, and FX empire

#12

Surely the best sources for fundamental news and analysis are companies such as Bloomberg, Thompson Rueters, and CNBC. Also the Financial Times, Wall Street Journal and the Economist provide great macroeconomic analysis and political news that can often inform traders about events that will potentially affect the markets.

#13

I use the calendar of dailyfx to see what the upcoming events are, but that is all the news that I consider. Not that dailyfx is better, I just sticked with it over time. Babypips has also a calendar: Forex Calendar: Economic Calendar for FX Trading News & Event Risk. There are many of them.

So why am I replying even if I don’t trade the news? -> You don’t need the news to trade. :slight_smile: I just use it to make sure that I get out of my trades in time before I am chewed up by the upcoming volatility.

#14

I have found an app for my phone that works great to tell me when news will be coming out. Its basically a calendar up to a week ahead. I love it because whether you trade the news or want to avoid it, the app tells you what news and even gives a definition of it. I cant stand CNBC any more. They drove me crazy when I first started trading. lol
The app is called “myfxbook” and its free.