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Chapter 25, Part I. Dealing with the News. Page 5

Discussion in 'Complete Trading Education- Forex Military School' started by Sive Morten, Dec 26, 2013.

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  1. Sive Morten

    Sive Morten Special Consultant to the FPA

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    And the last thing – very often the market starts twisting and turning with multiple fake outs right some moments before release. Then it could start moving in one direction, but right after release change direction to the opposite. This could happen to position closing by some large participants who know the news a bit earlier than the others. This could hurt you much and the process of choosing the direction could turn into a nightmare.

    So, you have to prepare a strict plan of action, depending on how different news will be released in both sides – positive and negative. This will save you a lot of money. The other way, if you will try to catch direction without a plan, just based on the market move – you will lose in most cases.



    What particular news to trade?


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    Commander in Pips: That’s not a very difficult question to answer – just analyze your trading account statistics and find the days when you’ve lost most part of your money. They were probably the days of significant news releases. But seriously speaking, different news leads to different impacts on markets – either stronger or weaker. It depends on news specifically, since some news is a bit lagging, while others are mostly leading.

    As you probably understand, leading news is more important and leads to stronger growth in volatility, while lagging news could even show no impact on market at all. Since we need some strong move on market to make some pips and we know that moves due news release usually has stable direction in short term – that is what we want – just to join it.
     
    #1 Sive Morten, Dec 26, 2013
    Lasted edited by : Oct 2, 2016
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