Re: News Trading...
I don't think soo news trading is really going to work out for retail investors like us for the following reasons:-
- We don't have direct access to ECN liquidity providers so your spreads will increase drastically making it harder to trade the news
- Most of the time it would happen that the sentiment & forecase of a particular news will develop for 2-3 days and even after a positive news...the currency dips
- Recently the effect of negative data on the US side has been positive for the $US b/c of the interest in buying US Bonds/Treasuries (Safe heaven investment in troubled times). This kind of behavious is right opposite to typical news trading concepts in which bad news = bad currency. Market changing dynamics make it hard to trade the news
I guess Technical Analysis with some idea of the overall market fundamentals is the way to go.
I don't think soo news trading is really going to work out for retail investors like us for the following reasons:-
- We don't have direct access to ECN liquidity providers so your spreads will increase drastically making it harder to trade the news
- Most of the time it would happen that the sentiment & forecase of a particular news will develop for 2-3 days and even after a positive news...the currency dips
- Recently the effect of negative data on the US side has been positive for the $US b/c of the interest in buying US Bonds/Treasuries (Safe heaven investment in troubled times). This kind of behavious is right opposite to typical news trading concepts in which bad news = bad currency. Market changing dynamics make it hard to trade the news
I guess Technical Analysis with some idea of the overall market fundamentals is the way to go.
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