Firstly, and @dpaterso and I consider each other friends, I have to say a few things.
Funda issues are tradeable. News is tradeable. Scheduled data is tradeable. BUT.
There are so many things to consider when trading using funda. Not just the news/data/issue itself. You have to look at the CONTEXT, both fundamental and technical. That makes it sooooo much more difficult. You need to have quite a bit of experience trying to trade using funda, to understand how and why funda moves markets.
As an example, API inventories for crude came out good early Thursday morning (Iām on GMT +8). Yet the DRAW at the EIA report later on started a short rally in oil. Whatās the difference between API and EIA? EIA is an official US government agency while API is just an industry thinktank. But we still got a draw right not a build? OPEC+ will likely extend cuts. But Trump ā ā ā ā threatens global growth, plus moves toward electric vehicles. But China is threatening rare earths. Etc etc etc.
What do you do?
My experience. Newbies cannot consistently trade using funda. Stick to TA. BUT. Funda is a major tool if you put in the time and effort and risk to gain the proper experience. But youāll probably lose. A lot. Using just funda. At first. But if and when you gain the necessary experience it can be a powerful tool in your arsenal.
P. S. Iām drunk so donāt belive in what I say.
So in the situation you just described, what would you do or which report will you base you decision on? Furthermore, can you briefly specify the news/news data that you usually make profits on and what margin of difference, between Actual and Consensus (Expected), informs your decision that a particular news will have great impact with respect to price movement?
It depends on so many other factors. As I said, you need to look at the overall context of the market.
No, I canāt. Itās not as simple as seeing if the results were better or worse than consensus. Would be quite a lengthy post, and Iām not an expert in these things.
Trading news is like dating a stripper, itās exciting until your wallet goes missing ā¦ donāt believe anyone who tells you that theyāre making a living day trading news ā¦ news are the most manipulated events in Forex business designed to fleece noobsā¦ watch beginnerās video on YT by āno nonsense forexā ā¦ itās the best channel right now that will teach you everything you need to know to trade! Good luck!
Love the stripper analogy. Spot on. Been there, done that (and I donāt mean trading the news either), got the t-shirt!!! LOL!!!
Must say I stumbled across those videos and was pretty impressed myself. So much so that I posted links to one or two of them at least twice around here. First time in all these years that I actually understood what makes FOREX move and why simply because of the way he explains things. Of course what I got out of those that I did watch was totally different from others here I would imagine. Validated my beliefs as to why to NOT to trade FOREX. Also nice to see somebody thatās figured out the reasons why most indicators have absolutely no meaning in the FOREX world but are totally relevant when it comes to Equities and Commodities. You get the picture Iām sure. And I saw the thread reviewing his videos. Really thorough and nice work. OP went to a lot of effort which was really nice to see.
Imvestors come from every walk of life. There are liberals, conservatives, and people in between. Five people hear the sme news and you will see five different reactions. News should be considered as only one minor element in your trading decisions.
Its better to hedge your account when trading news or major data release. Switch to larger time frame (H4) and set a wide Stop loss and take profit on the nearest resistance (buy order) or support (sell order). Use a good reward to risk. You will be surprised to that your take profit will be hit in few minutes.
Hi
Everyone tells you not to trade the news cause itās not safe, Me personally I trade the news all the time and Iām only new to trading, I find it exciting.
Thereās is one thing you need to know though, Never trade if you are emotional at any time.
You need to be clear headed and stick to your strategies, and be very disciplined this is very important, and never be greedy.
I like trading the news, it doesnāt always spike, but when it does and you know weather you want long or short it can be profitable, and you need to be quick :): I love it at least for me, I cannot speak for everyone.
By the way I need to tell you that I do everything that Learn to Trade has taught me not to do, but this seems to be working for me. There is so much that you donāt learn in the seminars and that they donāt teach you but there are certain things youāll have to learn for yourself, If you can find someone to trade with it might be good to share and to get help from but make sure this person is level headed.
I trade on news and I minute trade and I like it itās exhilarating for me. My Friend calls me a scalper now itās kinda funny.
I have been taught by a very good friend of mine I have known him all my life and now we are trading partners.
Everything I have learnt is from him.
I hope this helps you
S
Excellent answers folks, only I can say is all ACTION cause REACTION, donāt trade the news itself ,better wait for the reaction or anticipate the action !
Using fundamentals to trade, case in point AUD/JPY pair today. AUD data came out better than expected (record trade surplus) but AUD still being pushed down from 75.4 to 75.1 this morning. Reason: trade tension still far from being resolved
How to profit from forex then? easy, just follow a certain twit from twitter!
Iām new to this forum and still learning the ins and outs (ha) and am going to start simulated trading. Iāve been around charts and indicators for years but only recently decided to try trading.
My question to you is:
Does an ECN type brokerage style inhibit the amount of fiddling the broker can do to your trades?
Intend using trading view as my platformā¦
Nope. It makes no difference. Up until a certain (proper and huge) trade size the broker will be the counter party to your trades. Most all around here are not trading lot sizes that warrant their trades going to the actual market. Therefore all a broker is saying when they purport to be an ECN broker is that youāre not going to have to wait for a dealer to execute your orders. But this doesnāt mean that they donāt have control. And trading with an ECN broker also doesnāt mean that youāre not going to be re-quoted or not be able to get orders executed instantaneously and at your exact price. Thatās just a function of the market. And donāt be fooled by demo accounts i.e. orders will ALWAYS be executed immediately. Doesnāt work like that in the real world. And given that this is a thread about trading the news I can only assume thatās why youāre asking. Youāre wasting your time and itās just that simple. If youāre lucky: itāll work on a demo account. And thatās about it. And I see all these weird and wonderful ideas e.g. hedging before the news comes out. Itās nonsense. So you make on one end and then youāre left with the losing trade on the other side. And then??? What if price doesnāt retrace after the release???
Anyways. Carry on. Most will ignore the warnings (not directed at you specifically).
Oh and by the way I just want to add here:
Itās not always the broker that trying to nail you. I trade with (arguably) one of the best and most honest and regulated brokers on the planet. Take a look at the chart on this thread of mine (link below) from yesterday (which I posted for a laugh). It was the RBA (Australia) rate decision. Even with MY broker you would not have been able to trade that release. It happened in a second. By the time you hit the trade button the move was either half way or fully over or the broker could not execute fast enough. Itās just not a way to make money. But itās a good way to lose it. And not only that: take a look at the number of points (well in your case pips) in that entire movement. In order for it to have amounted to anything youād need to be trading a fairly decent lot size. And the bigger the lot size: the more difficult it becomes to have orders executed (in the real world of course).
there are specific algorithms which guess the trading knowledge / skill of a trader. they take (under a lot other factors) position sizing, rr ratios, risk ratios and trade amounts into consideration (they also use the data you feed them when opening an account, they ask you how much experience with what kinds of products you have etc) to put the trader in the correct category. depending on these factors the broker (and its algorythim) will decide to either always wire your trades directly to their liquidity provider or to be the counterpart on his own.
i could give you more details on these factors they use to decide but it wont make much difference to anyone here as even if your broker is your counterpart, there are very little (if none) brokers who can/will abuse this against you.
one sure way to make sure your broker is never your counterpart in your trades is to fund your account with 100.000+ as those accounts are always DMA to any broker that exist (seychelles, virgin islands, london or any other location and regulation).
edit: sorry i forgot to say what i wanted to say. if you show enough experience a 2000 account will also be a DMA account and your broker never your counterpart, as they dont want to lose money, even 50 bucks is too much lost money.
