Registered: May 2012
05-29-12 12:26 PM
Trading the News = Gambling
Don't be a sheep, what ever is announced in the news is already known by Smart Money - there is no edge for retail discretionary traders in trading the news...
News Channels are lagging indicators: they tell you what happened after the fact... glorified cheer leaders...
Ignore the substance of the news, "but always be aware of the release time's and treat News events for what they are, "Volatility events"
You should always be aware of the events and key times which can provide Volatility
Major events: FOMC/ECB announcements & Press conferences, Unemployment reports/rates, housing, etc...
These being usually 08:30 EST, 09:30 EST US open, 10:00 EST, EU close 11:30 -- 02:00 EST EU pre-open, 03:00 EST EU open
You can reference various economic calendars for example: http://www.forexfactory.com/calendar.php
Ignore the pundits, they all have hidden agendas. Do your homework, be prepared and rely on your trading signals. Apply proper risk and money management, take your signals, take your stops, rinse and repeat...
Don't rely on luck, only consistent luck in trading is bad