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Just successfully traded my first news spike.

Discussion in 'Beginners Bootcamp' started by HamishC, Oct 2, 2012.

  1. HamishC

    HamishC Recruit

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    AUDUSD and the RBA announcement that it would cut rates by .25 basis points.

    The reason Im posting is to give credit where credit is due, the major motivator behind trading the news came from these forums.

    Thanks for the PIPs FPA!!

    :cool:
     
  2. Pharaoh

    Pharaoh Colonel

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    Congratulations!

    Just be careful. After one good news trade, the temptation is to scale up your trade volume on the next one. If you want to trade spikes or after spikes, start small until you've gotten at least a few dozen news trades done.
     
  3. pipdreaming

    pipdreaming Private, 1st Class

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    Pharaoh, I see you posting quite often here, and appreciate your posts ;)

    I would say that a forex trader with some good experience will avoid trading around news, IMO. I am looking for a good winning probability, and if I wanted to gamble 50/50 I would go to the casino....
     
  4. Pharaoh

    Pharaoh Colonel

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    With a reasonably fast news feed and a good ecn broker, it's possible to make money news trading. Personally, I prefer to trade on longer time frames and avoid the news most of the time.
     
  5. Mr. Euro

    Mr. Euro Private

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    Professional traders always trade less on news, till they got confirm signals of one side movement (bearish/bullish). Only standard account holders trade safely on news they are risk takers. I believe in safe trading not indulge in choppy market situation.
     
  6. Kanton

    Kanton Recruit

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    News trading can provide some powerful market moves and some traders make their living solely on these. A method I used to employ which still works (under the right conditions) was to watch the way the market is trending before a news event - due to consensus expectation e.g. rumoured rate cut.. it the expectation was wrong and the market turns - it usually does powerfully.. I would try and scrape the last 20/30 pips as price drove into support/resistance.

    The main point here being not to jump in on a low liquidity spike and with no prior analysis.
     
  7. FringFX

    FringFX Sergeant

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    news trading is not necessarily gambling per se.
    there are instances when it can be traded properly and profitably. moves even during/after the news release are still predictable to some extent.
     
  8. perryfx

    perryfx Private, 1st Class

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    Sometimes news trading will give quick pips. But don't forget the fact that before and after first 05 minutes, trading may be dangerous for trading. Because of the spikes your stop loss may hit.
     
  9. Pharaoh

    Pharaoh Colonel

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    News trading is a completely different style of trading than technical trading. Both have their own risks. Both have their own rewards.

    Personally, I prefer technical trading, but used to make a few pips here and there on news trading.
     
  10. PhatRoyale

    PhatRoyale Private

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    What is 'safe' trading? In my opinion, 'safe' or 'choppy' market lies in the eye of the beholder. What is more important is trading based on your trading plan.

    Most traders trade on the side of current momentum - trend trading. The idea is to get on a trade when the price has a clear directional bias. However, there are traders who trade when prices are in a range. The idea is to get on a trade when the price is near the support or resistance of a range. Perhaps, that is what you view as 'safe' versus 'choppy' markets. Either way, profits can be made from both markets. It is up to you to come up with your trading method to trade them.
     

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