Anyone trade purely based on news only ?

[SOCRATES]

I agree with you, following the chart involves being open minded and accepting what unfolds, without using props.

Intuition is an extension of this open mindedness as a consequence of possessing enhanced knowledge.

Discipline is something different, and has to do with self governance and is separate from being open minded and / or intuitive.

Open mindedness and discipline are conscious faculties.

Intuition is a subconscious faculty.

 

[SOCRATES]

I stopped "listening to my intuition" and looked at what the market told me. For me, this is has lead to a larger number of profitable trades and fewer losing ones. There is n right or wrong answer. Whatever works for you.

Yes, that is correct. Either mode will serve, whether conscious or subconscious.

But the true art is to be able to blend the two, and to utilise them correctly.

And furthermore the highest art is to do everything intuitively, and unneringly correctly, but very calmly and effortlessly.

 

[Anonymous]

Take the recent Olympics bid for example. Up to the last few minutes London on the in-runnings bets were quoted like 7/3, a perceived loser as opposed to its opponent the perceived winner at like 3/7.

At that moment, would you have used all your money to back the perceived winner? What was the feeling like? Would you have backed the perceived winner just because it was perceived to be the winner?

A moment later, bets were closed, then the news came out, and Hallelujah! London won!

And you see the people in the street shouting "Loser! Loser!" The perceived loser turned out to be the winner!

 

[Baruch]

I would say I mainly trade news and then in second place is break outs. Of course this strategy does not always work but overall it seems to generate good returns.

Today is a classic be careful day though. For the past week or so fundamentals have seemed to have little influence. At first all figures that should have been dollar positive were ignored and so that was a sign that it was very offered. But this week figures both ways have been ignored. If the NFP is slightly stronger than expected then there is a danger, in my view, that the dollar weakens.

How do you play the news?

Today was a good day. The market expected a bad number, but we got a more than 200K number. My intution said short the euro before the number, but my stomach said no (and won). In 4 out 5 times the market is wrong, and it would have been a good idea to go against before the number.

 

[TheWolf]

How do you play the news?

Today was a good day. The market expected a bad number, but we got a more than 200K number. My intution said short the euro before the number, but my stomach said no (and won). In 4 out 5 times the market is wrong, and it would have been a good idea to go against before the number.

It's interesting to see that the NFP almost always lead to a USD buy. 10/12 times were buys in 04. But anyways, I tried my straddle strat. today. It kinda worked, but wouldve done alot better if it was more volatile (which i anticapated)

 

[Baruch]

It's interesting to see that the NFP almost always lead to a USD buy. 10/12 times were buys in 04. But anyways, I tried my straddle strat. today. It kinda worked, but wouldve done alot better if it was more volatile (which i anticapated)

I have first now read your journal - and I made a comment. It must be nice to have a automated system, so you can enjoy the life while the pips rolls in.

I suppose the many buy-signals after NFP last year was an result of an improving US labor market?

 

[JP1966]

How do you play the news?

Today was a good day. The market expected a bad number, but we got a more than 200K number. My intution said short the euro before the number, but my stomach said no (and won). In 4 out 5 times the market is wrong, and it would have been a good idea to go against before the number.

I never take a position before news, there is no point.

I did not have a good day today though.

 

[TheWolf]

I have first now read your journal - and I made a comment. It must be nice to have a automated system, so you can enjoy the life while the pips rolls in.

Thanks for your comment. and yep, that's the idea. But still doing alot of testing atm before putting my automated system live. The results have been promising so far. =)

*btw peeps, what news service do you guys use? I know it is pretty inevitable that the big guys get the info quicker than us, but does any service offer the news data about the same time? I have used FXCM newswire and a few others, but they do seem to lag behind abit. Cheers.

 

[Baruch]

Thanks for your comment. and yep, that's the idea. But still doing alot of testing atm before putting my automated system live. The results have been promising so far. =)

*btw peeps, what news service do you guys use? I know it is pretty inevitable that the big guys get the info quicker than us, but does any service offer the news data about the same time? I have used FXCM newswire and a few others, but they do seem to lag behind abit. Cheers.

As a Saxo and Etrade (Global Trader) customer, I use 3 free streaming newswires. Dow Jones is the best, and first with the big news, but I also use MNI, which has a lot of news stuff for forex traders. I don't like to trade if I don't know what's happening. It makes no sense.

 

[TheWolf]

As a Saxo and Etrade (Global Trader) customer, I use 3 free streaming newswires. Dow Jones is the best, and first with the big news, but I also use MNI, which has a lot of news stuff for forex traders. I don't like to trade if I don't know what's happening. It makes no sense.

Thanks very nice to know. =) Is this the one? : http://www.djnewswires.com/ I'll give the free trial a go.

 

[FOREXHUSKY]

Market Traders Institute calculate news as 2.4% of all trades,and more then 80% of risk.

I call it asking for trouble.

Personally never trade news always close positions before main news (mostly thr. friday night).

data positive for usa and usd down ,or negative and usd up or not how to tarde mess i dont know i stick to pivots for sure i made another couple miln.

 

[Baruch]

Thanks very nice to know. =) Is this the one? : http://www.djnewswires.com/ I'll give the free trial a go.

Yes. I suppose Bloomberg and Reuters are in the same class. If your broker don't give you free news, you can use Bloomberg radio or TV on the net.

 

[sccz97]

Yes. I suppose Bloomberg and Reuters are in the same class. If your broker don't give you free news, you can use Bloomberg radio or TV on the net.

don't bother with using dj for trading fx off eco releases. You're only gonna get the speed required from a combination of bloomberg and reuters. AS a rule of thumb (from experience) bloomberg is faster for US and UK figures and reuters faster for the asia-pac releases. And to boot, if you want to automate your system to trade figures, you're def gonna need to have bloomberg as their api provide you with the figure so you can get your systme to trade off the release before anyone else can even absorb the informatino and determine which way to trade

 

[TheWolf]

don't bother with using dj for trading fx off eco releases. You're only gonna get the speed required from a combination of bloomberg and reuters. AS a rule of thumb (from experience) bloomberg is faster for US and UK figures and reuters faster for the asia-pac releases. And to boot, if you want to automate your system to trade figures, you're def gonna need to have bloomberg as their api provide you with the figure so you can get your systme to trade off the release before anyone else can even absorb the informatino and determine which way to trade

By bloomberg/reuters, are you referring to their website/terminal/tv/radio? Cheers

 

[Grey1]

You should be selling into the news than following the momentum of the new driven events to open a new position .. This is how pros use news..

You might be able to make a few quid out of jumping on the momentum but this is not a viable , consistent money making strategy for pros specialy if your position size is in blocks of 100's 1000's ( depending on the stock price )

Pro use their inside knowledge or their technical analysis ability ( what ever you wanna call it ) to trade the news ..



Just one more thing .... Technical analysis DOES NOT WORK WHEN MARKET IS BLOODY .. ( NEWS release , ANNOUNCEMENTS, Un known comets such as 99/11 ) SO donot let some of naive coaches advise or lecture you on how to trade the market based on their chart pattern or technical indicators commonly known to humans ) under the above circumstances...

PS:-- TA works best when market is calm ... therefore you should AVOID trading the immediate OPEN because price is adjusting itself to over night NEWS )..

Grey1

 

[sccz97]

By bloomberg/reuters, are you referring to their website/terminal/tv/radio? Cheers

none, via the api that they provide. That way the figure can be retreivede direct into any custom application you wish to create.

 

[SOCRATES]

You should be selling into the news than following the momentum of the new driven events to open a new position .. This is how pros use news..

You might be able to make a few quid out of jumping on the momentum but this is not a viable , consistent money making strategy for pros specialy if your position size is in blocks of 100's 1000's ( depending on the stock price )

Pro use their inside knowledge or their technical analysis ability ( what ever you wanna call it ) to trade the news ..



Just one more thing .... Technical analysis DOES NOT WORK WHEN MARKET IS BLOODY .. ( NEWS release , ANNOUNCEMENTS, Un known comets such as 99/11 ) SO donot let some of naive coaches advise or lecture you on how to trade the market based on their chart pattern or technical indicators commonly known to humans ) under the above circumstances...

PS:-- TA works best when market is calm ... therefore you should AVOID trading the immediate OPEN because price is adjusting itself to over night NEWS )..

Grey1

You are very wise not to include technical indicators which indicate by not indicating,
which I am given to understand are now included in fully automated programs.

 

[Baruch]

A good news trade today in GBP. I think that GBP most times are good to news trading.

 

[sccz97]

A good news trade today in GBP. I think that GBP most times are good to news trading.

today was a beaut, long cable from 7788 and long gbpchf from 2454, donest get much better than that folks! This is the first time in ages ppi has done more thna 30 pips ...

only decent uk news to trade are (in order of potential profit and potential to move)
retail sales
ip
gdp
cpi
ppi
tb

anything else ignore unless you wanna get raped

 

[Baruch]

today was a beaut, long cable from 7788 and long gbpchf from 2454, donest get much better than that folks! This is the first time in ages ppi has done more thna 30 pips ...

only decent uk news to trade are (in order of potential profit and potential to move)
retail sales
ip
gdp
cpi
ppi
tb

anything else ignore unless you wanna get raped

Yes, a nice move. What's tb?