This thread will be dedicated to the one thing that frustrates me most. The damn news. I do very well scalping with candles and support and resistence.
And then it happens. News is released that I didn’t know was coming and I lose all my profits. Am I missing something other scalpers are not?? I have a news feed directly into my platform and I check the news here on baby pips, and I still get taken out for lunch. And it seems news is constantly rolling against me, and either I get it too late, or I do not get it at all.
Have you tried tradethenews.com? I tried their free demo and it seemed pretty cool, but you have to stay right there at your computer to listen… they don’t have any way to stream to a cell phone or text messages or anything like that (of course, if you’re not able to make a quick move, that would defeat the purpose, eh?)
Personally I trade the charts. I can’t stand to have to sit at my computer all the time!
I think alot of people just avoid trading right before the big news release times(which are listed on the babypips school page about the subject…Trading The News), but I know some scalpers completely ignore the news and survive…they might wonder where all their pips went though, lol.
My big problem is “reading” what the news means. Like today, nothing but bad news for the dollar, but EVERY currency cross showed the dollar going up…what the heck??? any help?
The forexfactory has a good schedule for news releases. Read the releases and see when related currencies to the pair you like to trade. Are to be released. As in you like the Aud/JPY the Kiwi will affect the Aud.
Pips4breakfast,
I dont like trading around the news. I have seen candles move 70 pips up, 105 pips down and then back up 60 pips in under 2 minutes. I knjow alot of people was knocked out because of that.
Pipsrgood,
If the news is not as bad as thought then instead of the dollar going down it will go up. so it can even go the otherway even with horrible news.
Playing around news events, expected and unexpected, is always tough. Financial markets are globalized now, which makes it important to remember everything is interconnected and recognize the important themes for the day before you trade. In other words, “what are traders watching today?” Commodities? Geopolitical events? Economic data? central bank commentary? etc…
Today was particularly volatile, but recognizing that the financial crisis (with a little bit of oil price movement) was the main sentiment driver would have given you a better edge in trading today. Or at least you would have adjusted your risk for such events.
So, i guess the main point is that in today’s environment, always ask “what’s the main theme for the day?” and adjust your strategy and risk tolerance accordingly. I hope this helps.
I have heard all of this before and I agree. BUT that is not the problem, the problem is I do not know the news is coming. In stocks I have a DJ streaming news, that keeps my quiet up to date on almost everything happening with all the stocks. There are alot more stocks then there is currencies, yet I am unable to find a good, reliable, up to date news source. Does anybody know of one? I have stopped trading untill I get this figured out.
