Just successfully traded my first news spike.

FringFX

Sergeant
Messages
391
Phat,
if it is true that MOST traders trade on the same side of the current momentum, then why many are losing?
 

Triantus Shango

Sergeant Major
Messages
1,372
as far as i am concerned, news trading is insane if you don't have a platform that can support speed of light execution. ;-)

as to safe trading, i'd say it's like the first time you go river rafting: you have no clue, literally feel like a fish out of water, are totally bemuzed by the rapids and unable to make any sense of the water flow. and yet, with experience, one day, you develop an intuition for the water flow, how the river current is moving, no matter how freakin' wild. when you get that same intuition for price charts, that's when i'd hazard to say that your trading has become slightly safer. ;-)
 

herculesfx

Recruit
Messages
7
on news market is very THIN .... why ??
because on one SERIOUS participate in that time ...
??? do You think You are smarter ???
 

Pharaoh

Colonel
Messages
19,722
SERIOUS participants love it when amateurs join in. The reason liquidity is an issue around news is that some people deliberately stay out while others place their biggest trades based on the release.

Connection speed and a broker that will fill you and honor the trades are the biggest obstacles to successful news trading.
 

Triantus Shango

Sergeant Major
Messages
1,372
IMHO news trading is best left to algos running on some server in the same data center and as close as possible to your broker's execute engine servers.
 

Pharaoh

Colonel
Messages
19,722
Given the fact that news trading equals educated guessing and that guessing is not part of trading I would say it does not matter how good of a trader you are, there is no way to predict the outcome of an economic release.
That's where a super-fast news feed or straddle orders with OCO comes in.

Of course, you still need a super-fast connection to a broker that will fill you and won't later decide to cancel your trades.
 

itkraze

Private, 1st Class
Messages
200
That's where a super-fast news feed or straddle orders with OCO comes in.

Of course, you still need a super-fast connection to a broker that will fill you and won't later decide to cancel your trades.
Exactly and some traders give reasons that order was not filled because of the gap during news release time. What is the truth behind this? Is it a fact that they can't execute the order because market is so volatile.
 

FringFX

Sergeant
Messages
391
Given the fact that news trading equals educated guessing and that guessing is not part of trading I would say it does not matter how good of a trader you are, there is no way to predict the outcome of an economic release.
actually, there are ways to predict. one is by looking at price. of course, we won't be able to get it right all the time.
 
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