Re: news feeds
based on my observations, here's how I firmly believe goes with news.
1) Event occurs somewhere in the world....
2) Journalist picks up on it, and puts out a headline. 90% of the time via Bloomberg, Reuters, or Dow Jones news wires.
3) A mix of algos and traders with access to bloomberg + reuters terminal + dow jones wire, place a quick trade. Market starts to spike.
4) Squawk boxes pick up on it. Ransquawk, ITC brokertalk, tradethenews audio etc etc. --- more traders jump on board. If it wasn't massive news, the free money probably was already made by the guys in #3. If it was fairly/highly important news, and you are quick, you might be able to make some free money yourself from the squawk.
5) news aggregating services, rss feeds, forex factory, forex street etc, pick up on it. If you are trading from here, the only chance (imo) you have of not getting totally screwed, is the news was MASSIVE and the market is determined to keep moving in one direction for the next hour. |