West Coast Pips
Sergeant
- Messages
- 132
I have to agree with Crazy Cat. There are so many reports one can trade. There are a bunch of reliable news releases out there though there are many that are not worth trading. Trading any news release carries great risk. We have seen in the past some releases spiking in the opposite direction to the data that is received.
Also be cautious about trading a news release when there are other components to it. There were several reports coming out the same time as UK Claimant Count Change last week: http://www.dailyfx.com/calendar/index.html?week=2010/0321&dir=b&sort=dateDesc&timezone=¤cy=|&importance=|. Imagine if BOE minutes conflicted with Claimant Count; this would have caused very nasty price action. Generally I have a safe rule of not trading news releases unless I am as sure as I can be.
Not so long ago we had the very reliable UK Retail Sales report. I remember the m/m number coming with a good positive deviation, though the y/y number came out deviating negatively and was not a great trade.
I must admit I have traded UK Claimant Count in the past. I feel more comfortable trading it when BOE minutes do not come out at the same time. There may well have been a statement that came out with the minutes making the gbp/usd respond so bullishly as it did. If you feel you really must trade UK Claimant Count as an example and there are potentially conflicting reports, keep your trade sizes very low to minimize risk.
Also be cautious about trading a news release when there are other components to it. There were several reports coming out the same time as UK Claimant Count Change last week: http://www.dailyfx.com/calendar/index.html?week=2010/0321&dir=b&sort=dateDesc&timezone=¤cy=|&importance=|. Imagine if BOE minutes conflicted with Claimant Count; this would have caused very nasty price action. Generally I have a safe rule of not trading news releases unless I am as sure as I can be.
Not so long ago we had the very reliable UK Retail Sales report. I remember the m/m number coming with a good positive deviation, though the y/y number came out deviating negatively and was not a great trade.
I must admit I have traded UK Claimant Count in the past. I feel more comfortable trading it when BOE minutes do not come out at the same time. There may well have been a statement that came out with the minutes making the gbp/usd respond so bullishly as it did. If you feel you really must trade UK Claimant Count as an example and there are potentially conflicting reports, keep your trade sizes very low to minimize risk.