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Thread: News Trading...

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    News Trading...

    Hi folks,
    I heard that some people do newstrading. How does it function? Is it possible to know in which direction the market price will go after the news?
    I have 3 examples for high impact or medium impact today:

    12:45am NZD Building Consents Actual: 5.0% Forecast: -9.6%

    11:30am CHF KOF Economic Barometer Forecast: -0.59 Previous: -0.99

    2:30pm CAD Current Account Forecast: -11.9B Previous: -9.1B

    What does this data declare and is it possible to pre-estimate in which direction the market price will go? Sorry for my noob question and thank you for your help.
    Best regards!

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    Re: News Trading...

    Quote Originally Posted by Meister_Propper
    Hi folks,
    I heard that some people do newstrading. How does it function? Is it possible to know in which direction the market price will go after the news?
    I have 3 examples for high impact or medium impact today:

    12:45am NZD Building Consents Actual: 5.0% Forecast: -9.6%

    11:30am CHF KOF Economic Barometer Forecast: -0.59 Previous: -0.99

    2:30pm CAD Current Account Forecast: -11.9B Previous: -9.1B

    What does this data declare and is it possible to pre-estimate in which direction the market price will go? Sorry for my noob question and thank you for your help.
    Best regards!

    Ok, Fundamental is not my strong side, but I will give it a shot
    You go to
    Code:
    http://www.forexfactory.com/calendar.php
    and on Detail part you will see Usual Effects on the list, if it says "good for the currency" it will go UP ... so you need to know that if you have EURUSD, and USD have HIGH news "good for the currency" probably EURUSD will go down... ok
    Now if this would work perfectly you would have nothing left on forex, because we would sweep the place long before you come to this ... so the problem is that some times price don't react the way we think it will, or reacts earlier or later... there is also other components that are moving the price beside the news that is ALL PEOPLE IN THE MARKET (or banks, big guys....)

    Data like 5.0% is just the way to represent economic data that influences that specific currency .. you can see it on Chart part in Forex Factory Calendar...
    Sorry for my bad English, and hope I help a little

    Barbara

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    Re: News Trading...

    Quote Originally Posted by Meister_Propper
    Hi folks,
    I heard that some people do newstrading. How does it function? Is it possible to know in which direction the market price will go after the news?

    What does this data declare and is it possible to pre-estimate in which direction the market price will go? Sorry for my noob question and thank you for your help.
    Best regards!
    some try to do it, and before ~ 2 1/2 year it was possible to trade in the right direction , but you must have a good news provider, same reuters ( expensive ~ 4.500 $ / month ) and then a ecn broker and fast internet access , so you can go in before the whole traders jump in and out quick also .

    now the forecasting is very difficult, and many news already leak before the newstime come so the big traders already move the price and if the news come out, already priced in and the price go after news in the opposite direction.

    also the spread heavy and marketmaker broker wide the spread also

    the only trading for news is the after news trading now, also people say after spike trading, is a price action trading

    so if you new in this newstrading very careful , it can blow your account in seconds, stops will not respect in this time!!, look the biggest news before, like nfp and interrest decision

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    Re: News Trading...

    I usually do not trade the news period because of high volatility and high broker spreads ,only the first friday of every month the NFP report and I gain up to 100 pips on EUR/USD in one hour period.

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    Re: News Trading...

    Do you guys really belive in NEWS for trading? I bet people out there must have made money before the NEWS is out.

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    Re: News Trading...

    Dear,

    I believe that if we get news before releasing them, we can make real high profit, is there any way to buy news before releasing them?

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    Re: News Trading...

    It's all about market sentiment when trading the fundamental/macroeconomic news,ifoundt.

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    Re: News Trading...

    Quote Originally Posted by meengineers
    Dear,

    I believe that if we get news before releasing them, we can make real high profit, is there any way to buy news before releasing them?
    sure, but you have to pay for the news, google reuters newsservice ~ 4500$/ month, or cheaper but slower tradethenews

    -- 30 Aug 2009, 15:42 --

    and the best there are tools , they read the news and open the trade, like Secret Forex News Weapon and many others

    but sometime newservice also writing wrong and the software open your trade , hopefully you will quick enough and your broker let you out of the wrong trade at newstime

    cheers

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    Re: News Trading...

    Its dangerous but I can't help myself not to trade However i think we can't predict where it is going just by receiving the news. Even if the result is good for the currency, it can go the other direction.

    For example if US receive bad news, investor will turn into safe heaven (dollar), hence USD will gain. Doesn't happen all the time, but best is to wait after 15 min until the dust settled, then only enter a trade

    In my experience so far, the best news to trade is NFP, it usually can go as far as 200+ pips. So even if you are late, you'll still be able to enter a trade since the direction is quite obvious after 10-15 min.

    Other news i see only generate 40-50 pips and it is FAST, so if you are late to enter a trade, better don't trade, since there's a big possibility for the price to turn around.

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    Re: News Trading...

    Quote Originally Posted by harry007
    sure, but you have to pay for the news, google reuters newsservice ~ 4500$/ month, or cheaper but slower tradethenews

    -- 30 Aug 2009, 15:42 --

    and the best there are tools , they read the news and open the trade, like Secret Forex News Weapon and many others

    but sometime newservice also writing wrong and the software open your trade , hopefully you will quick enough and your broker let you out of the wrong trade at newstime

    cheers
    Agreed, unless you've got money to pay for the news services as well as an extremely reliable broker, news trading is not an option. I suggest sticking to technical analysis.

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