I’m curious about news trading and wondering if anyone can suggest some reliable sources for it?
If anyone has some tips on how to start news trading, I’m all ears.
Have you tried it before? Is it a high-risk strategy? Would love to hear your experiences!
Hi, I personally don’t trade under news, the market is wild, spreads could be higher than usual, and you can have problem with enter/exit transaction. Regards Greg
There are many sites where you can see the latest news or data and even forecasts of course.
I’ve done a lot of news trading and while it looks cool if you get it right, it doesn’t feel good when you’re wrong.
You could also be right, but be wrong haha! Let’s say you guess it right and there are great news for USD, however USD goes down on the news. Why? Well, this is how the game is played by the big players. Even though the news were great, big players push the price in the other direction to get you out of the trade first before they eventually make the price go the “right” way, when price actually starts reflecting the news.
You’re also running a risk of your SL activating too late. If you put your SL 20 pips and let’s say it’s Friday and NFP report just came out, chances are your SL won’t get triggered immediately and you will end up losing 70 pips instead of 20. Also forget buy/sell limit or buy/sell stop orders, they’re not advisable.
I’ll just add this: I’ve spent a lot of time trading the news and was actually reading everything before the news, watching videos, looking at graphs and looking at charts before the major news come out.
Truth is, this is THE WORST time for us traders to be in the trade. This is when that highly irrational moves and most obvious price manipulations are taking place which can really hurt your balance.
You can perhaps guess in which direction the big banks will push the price by using client sentiment, but it’s really not advisable.
One more thing: for you to make money trading news, you have to be in the trade before the news comes out due to the enormous spreads that occur once the news is out. So you have 50/50 of being right.
Let’s say you’re correct and price goes 50-70 pips up in a second (which is normal on NFP), what now?
Did you really make 50-70 pips? Hahah, no you didn’t. Another thing is that, that 50-70 pips move will be gone in a few seconds if you don’t react fast enough. So you were long, you were right, the news were good. That 70 pips just retraced in a few seconds… will you stay in the trade? Are you 100% sure price will go up, I mean the news were good right?
So yeah, seen it, done it, never doing it again! I advise you the same!
Also, if you think you’re smart (we all did) if you use limit or stop orders, hahah, well try it out and tell me how it went!
Forget about trading the news! Be aware of them all the time, but never trade during the major news if you don’t have to.
I believe there is one advantage been a retail trader .Providing you have other sources of income you don’t have to do anything ,there is no targets to meet.
Just watch what happening to the markets after news announcements ,then later hop on aboard
Hmmm. I don’t really trade the news. But I still check it out for any big events that could affect pairs. The most reliable ones would probably be Reuters and Bloomberg.
If you’re planning to venture into trading the news, you might also want to read this lesson first for a refresh of the basics. Trading the news can be pretty tricky and it takes a lot of experience, I think.