Ahhh this is so frustrating. Im kind of getting the hang of trading news on demo and its working well for the most part however… i tend to find alot of news ‘leaks’ or you tend to find the market moves before the actual figure/statement is done. Now of course this is due to the big guys getting the info first hand before it goes public but how do i anticipate this? is there a way?
I have tried trendlines but instances like this trendlines wouldnt have given me any success. As you can see in the screenshot below the news was announced at 8.50 however the bulls already started racing a good 10 minutes before this meaning i couldnt get onto the trend. (5M Chart)
Add a couple of other factors and the odds are worst than the 50 50.
People dont trade news. They speculate on it.
Hence if you are just starting out, I would highly recommend that you avoid trading news releases and concentrate on figuring out how the market moves in the first place and why it does what it does where it does it.
Why is it that newbies think they have to trade news events? Why do they think that somebody has the “secret” to trading news events?
I know from my own experience, I did the same. The first news event I traded was a very profitable move within minutes, but I didn’t even realize I was in the middle of a news event until hours later. After that, I seldom had any winning trades during news events of course which made me all the more determined to figure it out. Finally I read some advice from an experienced trader who said it was OK NOT to be able trade the news - it is not essential to being a good trader. Think of it this way - tts not like being a hitter in baseball who just can’t lay off a high outside pitch and has to spend years breaking his habit before becoming a better player. So my advice is to focus on every other aspect of trading and if you still have the inclination after mastering them to try trading news events, then go for it. But by that time, I think you will realize the futility of wasting effort on it.
you have to understand news is not really news.
when news reaches you, it’s usually too late. Like you said, ‘insiders’ get first crack at the news, even before it is released to the market.
if you want to anticipate, then you have to read the market - what price is telling you.
fascinates them because news produces quick moves in the market… A quick buck (positive or negative)
Of course most of them would realize only much later on that it is mostly a way for a quick negative buck(s)!
