Trading the News - need help with books, sites, strategies

Beginner Questions
1

Dear All,
I would like to know more on [B]trading the news[/B].

Not long-term.
I’m also not a “fundamental”.

I want to trade: breakout, short-term, quick price moves and stuff.
…related with trading the news, ofcourse.

Can anyone recommend me:

  • books that discuss this matter
  • websites with interesting information
  • strategies

Kindest Regards

/Ricardo

2

Hi rd ,

Just want to share a bit of my experience with trading on news ( so far it’s never failed me ) :

  • Find news that have strong impact (GDP,Jobless Claim,etc)
  • Choose major pairs (usually Euro,GBP,AUS,JPY all against U$D)
  • 15 minutes before the news put a straddle ( buy stop and sell stop about 15-20 points above & below current price)
  • Place cut loss 30 - 40 points
  • Place Taking Profit 30 - 50 points
  • Watch closely until the news is out
  • Pray that it reach our profit target:D
    ** Be careful with GBP since it’s usually move quite volatile close to news

Good Luck !!

Andri66

3

There are a few problems with straddling news.
I speak from experience.
First, the spreads are ULTRA wide before major news.
This severely hampers a news straddle strategy.
Second, many times you get whip-sawed after the news.
I guess it’s possible to make money doing this sometimes but alot of times you will get stopped out.
If you can make it work for you, the more power to you.

4

Thanks for you answer Andri66.

But I would like to know:

  • what is your broker ?
  • your positive experience has been with a “live” account ?
  • does you (or anyone reading this post) recommends a good broker to trade the news ?

Kr

/Ricardo

5

Look into trading breakouts… my thinking a breakout about to happen and having news in the price actions favor might create high gain situations.

I don’t know really, just a thought.

As for news in general, finally, stated solid reasons for avoiding news strategies.

But it all boils down to screen time. Observe it in real time.

6

Hi rd ,

  • To answer your questions :
  1. I use Instaforex , so far there’s no problem in withdraw the fund.:slight_smile:
  2. Yes , with live trading account , but only choose news with strong impact (GDP & Jobless claims) from major country (US,Euro or UK).
    It’s always a risk with forex trading and there’s NO 100% Guaranteed Trading system ( or common called as ‘Holy Grail’):(, but we can minimize the risk ( you can take position after the news is out , so you already know the trend whether it’s up or down and just take 20 - 30 points of profit).
  3. Good luck RD , as with anything people will fall first before succeed (so start with mini account, test your trading system for few months and see if it’s profitable or not).:smiley:
7

Hi,
I recommend to look daily forex news site like: (forexnews.com)Forexnews.com, (fxstreet.com)Forex Street, (bloomberg.com)Bloomberg.com, (reuters.com)Reuters.com