news trading

Discussion in 'Newbie Questions' started by vanity, Nov 8, 2010.

  1. vanity

    vanity Active Trader

    Hey boys and girls,

    I'm new to the forum, also somewhat new to forex trading. I've only been trading demos at various brokers, and I've been reading lots about trading.

    To me forex trading is very exciting, yet it seems very risky. I do love the actions during news release, but I don't think I have the ability to trade with real money during events yet.

    I've read many opinions about trading during news and events, and it seems to me many experienced traders also avoid the volatile trading time frames.

    I know there's no holy grail to winning trades, but is there any rules that I should follow?
  2. jmathers

    jmathers Trader

  3. DonnaMag

    DonnaMag Trader

    Hi vanity and welcome! You are correct: trading during high impact news is extremely dangerous and honestly- is more gambling than trading. As you wrote, there is a reason why many experienced traders try to avoid trading while important news are being released, as it can be extremely volatile, with the possibility of spreads being widely open, and worst of all: your money can be erased within seconds. However, some professionals know how to make money during news, by defending their positions with hedging. I don't support that kind of systems, especially for beginners. Try to set a basic trading system, basing break-ups and break-downs. Keep the leverage at the minimum level, and you should be fine.
    Good Luck and Happy Trades :)
  4. nalu

    nalu Confirmed ProfiForex Representative

    When trading forex on news release you should be able to know when the news release are expected and which data is important that has been released and also how to trade based on the movement of the market datas.
  5. fxapex

    fxapex Active Trader

    News have very initial impact on the market, when the news hit the market a trader has to decide that the news is going to have a positive or negative impact and trade accordingly.
  6. chief

    chief Confirmed Tickmill Representative

    seem you having a glance with news trading activity. yes is true many suggest to avoid news trading. the main reason are not the always the market volatility. but i more like, are capable enough to do ? did your brokers allow such trading strategies. spreads being widely open, too many order to accept, it's when the order put in sequence. this where why broker's liquidity provider take important rule. your money can be erased within seconds, unless you plan to use full of your avalaible margin :D.
    i dont want put too much explanation. here's the deal, find the brokers server, which allow narrow stop/level limit order, try with armada markets, they offer 0 zero stop level/limit order, and compare with other broker server with extremely low deposit, larger stop/level limit order. before news released, put stop/level limit order as near possible with the current markets. place same order with both brokers, at their demo would be good enough, because a typical mm brokers mostly not supported news trading even with their demo server. ;). I' ve done this routine before i decide to having real account opened with armada markets.
    have a try, and give us your feedback, see if you can experience couple thing from those simple step.
    i just want to get everything straight and right, before you get brainwashed by many trading article, trading tips scatter all around the net.
  7. Fxpipper

    Fxpipper Master Trader

    practice good MM, would have added more but the others have already listed out same, good luck
  8. alexflemj

    alexflemj Active Trader

    You'd better register for a demo account with a broker and test for yourself. Take a look at the charts around news times, mind the spreads, etc...

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