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Stops on Daily News Signals

Discussion in 'Beginners Bootcamp' started by cmdman, Jan 2, 2009.

  1. cmdman

    cmdman Recruit

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    I'm new and just wanted to know how losses are handled on the daily news signals.

    Thanks so much
     
  2. sincronic

    sincronic Recruit

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    There are some key issues when trading news:
    * - Backtesting and a strong Technical Analysis support must be needed. Here is a good example of that: Unemployment Claims Strategy « MT4 Experts Advisor’s Blog
    * - You must create a EA (a software) to avoid requotes and to enter at the right time.
    * - Don't trade news has little or none influence on the market. That is news that affects the market in 10 to 50 pips are very difficult to make money with due to spreads.
    * - Trade big news those that can move the market more than 100 pips. In order to avoid wide spreads you must trade long term movements.
    * - Be sure you have the right source of information. You might want to check Reuters, DailyFX, and some blog about news: AngyTrix’s Blog
    * - Find a good broker with a great bank support which would allow the broker to fix tight spreads. These brokers are difficult to find but if you check Oanda, Tradeview Forex, ACM, and a few more, you could find something good.
    If any of these issues are missing you might stay out of the market during a news release.
     
  3. Pharaoh

    Pharaoh Colonel

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    Exact stops for a spike trade are hard to select, since it depends a lot on what your broker does around newstime. You should spend some time just observing price action on your trading platform during major news events to get some idea of how your broker reacts at these times.

    This article will give you some other ideas on how to trade the Daily Signals:
    http://www.forexpeacearmy.com/forex...w-trade-fpas-forex-daily-trading-signals.html
     

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