Wait, Listen... Trading ain't hard, PropFirms are

Okay, let’s clarify this; news trading is not gambling for those who have open positions some minutes before the news even comes out.

Of course you would have positions before the news comes out, that doesn’t prove that it isn’t gambling

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I think this will be a very tough yet simple discussion here taking into account the case of Mr. A & Mr. B.

  • Mr. B seeks quick gains and upon seeing the news release opened a position 2min to, during or past the release hoping to lock some substantial profits by betting on the outcome.

  • Mr. A was accused of breach while opening a position in accordance to his setup, which run for hours, likely days before hitting TP target on news release order. Should Mr. A have close his trade 2min before the news when he knows where his targets are? Or perhaps not set his target and just let his trade run until the news calm which will exposed Mr. A to possible great reward or fatal loss thereby losing the account?

This is a question for all PropFirms and us traders, who the gambler is here?

Of course, Mr. A isn’t the gambler since he’s taking trades based on his strategy, which has a predefined set of rules and conditions that need to be met before he takes a trade but you can’t completely rule out Mr. B as a gambler since he may be trading on a news release that has largely been forecast to go a specific direction; therefore, he has based his decision on the bias on many other traders.
Or, Mr.B is actually a gambler

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It’s not really a question for prop firms at all. They have the benefit of endless market research (with outcomes actually pretty self-evident to anyone thinking it through for themselves!) showing that it doesn’t pay them to fund anyone who wants to “trade the news”.

Counterparties pretending to be “brokers” make huge profits, collectively, from retail traders trying to trade news announcements. Even the FCA has publicly commented on this.

If I were funding someone else to trade, I certainly wouldn’t be letting them trade the news!! Would you, honestly?! :hushed: :roll_eyes:

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This.

If it were profitable for them to allow it, then obviously they’d allow it, wouldn’t they? They’re running a business, not a charity.

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You obviously diverted the purpose of this thread by cutting out an excerpt from the overview. Did i ever said something in support of gamblers?

And what measures would you put in place to prevent gamblers from your system?

Maybe i need to share you my experience. I got a 50K funded account recently, of which i had a position run through the weekend. While i was aware of the news trading and the 2minutes rule, i never knew i would be a victim as my position have been running for quite some days.

While my TP target was closed as a result of the news, it was a limited joy as my setup worked out as plan until i got the message,
“Dear Ayo, as regards our firm terms and conditions, you’ve for one or unknown reason breached our policies on news trading and your account is hereby suspended…”

Trust me the PropFirm is good and never have i for twice or once had an issue with them. Even while i messaged their support, the chat was fun.

But one thing made me brought this issue up is,

and I think, there should be a system that separate the gamblers from traders in a mechanised method whereby the traders are not affected in any form.

I read from a thread earlier that PropFirms ain’t for beginner traders just exposed to the market, but for the established traders with his experience of the financial market hoping for a method to getting funded.
Just like taking a loan to grow your business.

Just as most business, so is PropFirms and where most get it wrong is “taking loans to start a business” rather than “taking loans to grow a business”

The reason there much noises bout PropFirms today is because we have traders with imminent exposure of the financial market who for one reason or the other thinks since they know when the market is fallen and rising, it’s time to get funded and they get trapped in the rules.
Their stories ain’t different from someone getting a loan to start a business he havent been immersed in.

Maybe these people needed to see this, that every of the rules, every of the policies;

and yet, its a fact that you can make good money, experience and dedication :wink:

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Err… yes it is. The fact that you entered a contract with a Prop firm, one of whose rules is that you don’t trade the news, and you did not exit the market when the upcoming news event was published, means that you broke your covenants of contract and were quite rightly suspended. It is their money, not yours, and just because you did not include in your trading plans to exit the market on upcoming news event means they were within their rights to suspend your account. That is not being “hard”, that is just applying the rules to an errant customer.

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News that comes out, is dead news most of the time. So you never know the real reason behind it’s release until it’s late. That’s how they can direct the market in any way they want and they can make profit from, but what about us? let’s not get easily tricked by them. Not to mention almost all brokers have limitations on news trading.

What constituted “news” in this case. A high impact rated event?

Does the prop firm provide you a list of events they want you to stay clear of?

I haven’t heard of that, before. All the forex brokers I know love their customers to try to trade the news, because as counterparties it’s obviously a huge income-source for them.

Can you give some examples, Charlotte?!

Are you a person, or an AI bot? :roll_eyes:

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I’m curious, how do traders anticipate market movements before the news is released? Is it based on historical patterns or other indicators?

Trying to guess the direction of the market move made by the news event is inherently gambling because it is “supposedly” impossible to know what the data is going to be. Unless you have an idea what the data would be (insider trading), then you are guessing and by your definition - gambling.

Your argument regarding have a thesis before the news is invalid. Simply because your thesis would not have incorporated the effect of the news event because you are not supposed to know what the news is.

In reality of course insider trading happens all the time. But that’s not really relevant here.

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You can’t really predict direction the moment of news due to figures, but you can definitely get its overall movement from historical datas.

That’s definitely right.

That’s definitely right, too. The problem is, though, that although that’s true, with news trading it’s dead easy to get the direction right and still lose a lot of money, because price spikes in both directions are so very common.

Trading the news is the one time that your stop-losses can easily not be honoured, because the brokers are unable, themselves, to get positions filled at specified prices.

So it’s basically a way of trading without a stop loss, which is crazy.

Of course, collectively, spot forex “brokers” make fortunes from people trying to trade the news, so they naturally tend to encourage it. And some even publish “advice” to their customers on “how to do it,” lol!! :roll_eyes: :hushed:

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I am yet to work with one that actually has no limitations on news trading. Don’t tell me now that you are working with a broker that doesn’t change spreads and increase margin after news?

How weird! I’ve never encountered one with news-trading restrictions. Which ones have you used, that do?

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I know of very good brokers who change trading conditions based on events, why don’t you tell which broker you have worked with that has zero limitations and change of conditions close to news and events?