Do you guys trade before the news or trade after the news?
Does short-term news event matter?
How to know whether a piece of certain key news is long-term bullish/long-term bearish?
What about short-term bearish/bullish news?
News trading is always interesting to me and so I always try to take advantage of it. I won’t say that I follow fundamental market analysis because I have lack of fundamental trading knowledge. But I strongly rely on technical analysis and especially fibonacchi helps me a lot to identify strong support and resistance level based on which I mostly take my trading decision.
Do you close your trade few hours before news?
After, sometimes, yes - but only when I’m as sure as I can be that the market’s settled - often after about 10 minutes.
Yes, enormously. It’s the one time a broker may not be able to honor your stop-loss because of fast market movements. That’s partly why it’s the single commonest cause of major disasters among people learning.
Trading the news looks easy, fun and profitable, until the inevitable disaster, which is always “terribly unlucky” and “completely unforeseeable”.
Definitely something to avoid.
It’s discussed in countless threads here (and in all trading forums). If you have a bit of judgment and take some time and care over reading them, it’s actually pretty easy to see that the experienced, more successful traders are strongly advising people to avoid news trading at all cost, while those encouraging it are mostly a mixture of people promoting things, people trying to sound like experts to build their credibility (also usually for promotional reasons of one kind or another) and inexperienced beginners.
One of the biggest funding company prop firms, with many thousands of evaluatees, revealed last year that out of their news-trading customers who made a decent profit at their first attempt, more than 50% actually lost their accounts at the second attempt. There’s a great lesson there for those willing to learn it.
What if you are on a long trade on GBPUSD, and there is a US CPI coming tomorrow/tonight, and you think that CPI data will be unfavorable for USD?
What “I think” isn’t relevant. News trading isn’t mostly about getting the direction right. It’s very easy to get the direction right and still have a disaster from bidirectional spikes and/or overwhelming spread-widening.