not easy, but i think taking your analysis seriously and praying for favor can help
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Dear Cloudcharter;
no!
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.
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Trading the news in real time is not advisable. I only use it as a basis for Fundamental Analysis.
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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.
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Hi
Everyone tells you not to trade the news cause it’s not safe, Me personally I trade the news all the time and I’m only new to trading, I find it exciting.
There’s 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 doesn’t 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 don’t learn in the seminars and that they don’t teach you but there are certain things you’ll 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 it’s exhilarating for me. My Friend calls me a scalper now it’s 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
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If you know what you’re doing then what’s left to face is the broker’s operation.
It’s like all other aspects of trading. Some can’t and some can.
You need that sense of why things are where they’re at and what’s next.
You obviously need to have an edge in your study.
Trading the news is doable to an extent, then you’re left hoping the broker you use doesn’t get in the way.
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Excellent answers folks, only I can say is all ACTION cause REACTION, don’t trade the news itself ,better wait for the reaction or anticipate the action !
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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!
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I’m new to this forum and still learning the ins and outs (ha) and am going to start simulated trading. I’ve 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 platform…
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Hi.
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 you’re not going to have to wait for a dealer to execute your orders. But this doesn’t mean that they don’t have control. And trading with an ECN broker also doesn’t mean that you’re not going to be re-quoted or not be able to get orders executed instantaneously and at your exact price. That’s just a function of the market. And don’t be fooled by demo accounts i.e. orders will ALWAYS be executed immediately. Doesn’t work like that in the real world. And given that this is a thread about trading the news I can only assume that’s why you’re asking. You’re wasting your time and it’s just that simple. If you’re lucky: it’ll work on a demo account. And that’s about it. And I see all these weird and wonderful ideas e.g. hedging before the news comes out. It’s nonsense. So you make on one end and then you’re left with the losing trade on the other side. And then??? What if price doesn’t 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:
It’s 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. It’s just not a way to make money. But it’s 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 you’d 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).
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i must correct you here.
all brokers have an a-book and a b-book.
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.
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No problem.
Doesn’t matter how you fudge it: there is a discrepancy made between trade sizes and traders who know what they’re doing and those that don’t is all I’m saying. And it’s wishful thinking that somebody with a $100 account is having their trades routed outside of the broker. And even with thousands of those types of accounts: there are algorithms that will automatically offset the broker’s risk once it reaches a certain percentage. Well that’s at a reputable broker anyway. Others will just start mucking with your trades so make sure they’re good to go.
Anyway. You are quite correct i.e. +$100 000 and you’re probably good to go. But given the posts I see here everyday: well that’s my point really i.e. not something that 99.5% around here need bother about.
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Just saw your edit. I wouldn’t bet on that. As I said: they’ll offset their risk when a certain cumulative percentage is reached.
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pretty much all brokers are exactly the same. the sorftware they use, the liquidity providers they have etc.
99% of brokers do not use their own software (all of the brokers advertising here and brokers ive seen people mention) but use 3rd party prodiverds software. the industry is kind of complicated but one is eas to explain: the brokers name (and reputation) is its own real asset, everything else, software, strategies etc is beeing done by suppliers to those brokers. you can trade with a reputable broker with the location in London and with a no-name broker in cayman island, the result is the same, the trade will be handled on the same account of the 3rd lvl provider who works for the 2 brokers, even when you call both the brokers its more than likely that the person you talking to is working for as little as 5-7 different brokerage houses to talk with you in all their names.
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generally a small account always starts on the b-book. when/if you make some winning trades they will move you to the a-book asap to reduce their losses.
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Well. In fairness I can only comment on the REPUTABLE broker that I used to work for and all was in-house insofar as proprietary software etc. is concerned (excepting the MetaTrader side of things really).
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but there is a easy way to figure out if youare a a-book or b-book account.
if during high volatility news your trade gets open and closes almost instantly then you definately are a b-book client and you trade against your broker.
if your trades need a few seconds in high news spikes (even if its tiny trades) to open and close, then you have DMA and you trade on the a-book.
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Now isn’t it funny. EXACTLY. But most will argue with you and assume it should be the other way around!!! LOL!!!
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I have never tried to trade news events, I have found enough ways to donate to the brokers.
I use a simple approach on daily charts, probably miss a lot, but I do not get caught too often for losers.
Years ago I tried the faster charts where news has quite an influence… not a good time for me.
I think the big guys, like banks and hedge funds, have a way to manipulate Forex and they can clobber retail traders in seconds.
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Thanks for the info… that was my first post on baby pips so of course I’m in the wrong topic.
I have no intention of trading the news. I intend using trend and a couple of indicators that I yet have to trial. If testing doesn’t work out then I’ll try flipping a coin
The chart sure is an eye opener!!
I don’t see the link to your broker… I’m in Australia pepperstone is a recommended abroker
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