Laissez Faire
Registered: Sep 2010
Posts: 4153 |
06-15-12 10:50 AM
Quote from kmgilroy89:
Don't you think there is some important news out there that you need to know and can affect the markets a lot? For example, a merger, terrorist attack, bankruptcy, fraud, etc.
As others have already stated, by the time this hits the wire, the big players have already acted on it by the time you are ready to start processing it.
On top of that, the market often moves opposite of where you think it will move based on those news. At least how I interpret them and I`ve seen others fail greatly in their attempts as well.
These things you mention are called NEWS SHOCKS and most of them can`t possibly be predicted anyway. That`s why trading in liquid markets and with a low risk profile usually is a smart thing.
One may argue that these are not exactly news shocks since they can be partly predicted, but when you know an important meeting is going on and a release is to be expected sometime during the day, you can choose to stay flat that day or window of time if it is believed to be a release with significant market impact.
Quote from kmgilroy89:
Are there particular sources you use to find the time of release?
I use the economic calendar at Bloomberg and Forex Factory. Seems to cover the most important and scheduled news releases.
Remember, your question pertains to day trading. For a player on higher time frames and with a different methodology, news is suddenly more relevant, although price is still king in my opinion.
|
