That's fine to each their own. However, you really should keep an open mind that it can and IS being done. You may consider TA hockus pockus and more difficult than the way you trade but I find that it suits my personality and mindset perfectly. I dont go around saying fundamental analysis is BS or options trading is impossible to make money in. That may be true in MY hands but you may succeed at it....great. BTW I use it to swing trade and NOT VERY long term trends.
What news service do you use to trade the news? I personally look at news that happened in the morning to see if it formed a trend. Then I try to wait for a TA setup to trade it. Here's an example, Europe has agreed to help their banks. This happened around Monday night. So for Tue Wed and today, we have had a bullish trend bias to all of the markets.
ok..i would appreciate,if you show me actual trades based on upgrade\downgrade news, released during the day. like at least 10 of them..along with results. cause again,based on what i've seen-by the time upgrade\downgrade info reach you-it's priced in already
yeah but an old tick f&^*er like you should know that you can trade the echo. Todays bullshit story in AKAM a good example.
hasnt been anything worth anyones while on this board for 8 years, 'cepting my amazing calls which the vermin here are too dumb to appreciate
There are traders that are consistently profitable trading news flow without charts. There are traders that are consistently profitable using charts. There are traders that are consistently profitable using both. If you can't do one of the above...it's naive to believe nobody else can do it. Regardless to which of the above the few profitable traders are doing, there are other arguably more important variables being used by any consistently profitable traders not being discussed when threads like this are started (e.g. market experience, psychology of the trader, discipline, money management, proper capitalization, position size management, proper trading instrument for your trade strategy, stress management, proper broker platform, proper trade workstation, proper trade environment and so on)...sometimes known as trading plan. Therefore, next time you meet someone that say he/she only uses NEWS and nothing else as a profitable trader. The other variables mentioned above are just as important but the trader just didn't want to mention them for whatever reason. Thus, that trader is using something else. Same is true for a profitable trader that say he/she only uses TA and nothing else. :eek:
I don't use T/A but I know at least one trader that used nothing but MACD and P/A and was consistently profitable. This was years ago. I asked him why he used MACD and he proceeded to put a number of other indicators on the chart, stochastics, ROC, etc. They all looked similar..nothing but a momentum indicator. The difference is he knew HOW to use indicator and never based a trade solely on MACD, it was simply a tool. I think most newbies look at indicators without any real understanding of what they are doing, much less what the indicator is telling them. If yolu don't know HOW to trade, what good is any indicator?
That's not really true. The market reacts to news quickly. Example, Europe fixing bank/Greece crisis and the Fut's will gap up pretty big and you won't catch it but after that the market basically trends up the rest of the day. Every dip is buyable so on a day like that you don't need any kind of strategy -- just close your eyes and buy. Barring any further news the move for the day has been established -- surf's up. On other news releases -- CPI, Employment Report, Initial Claims, etc -- you have to consider the reported number compared to the expected number. If it's close the market will likely chop. If it's way off the market will trend in whatever direction the number dictates. Trading news isn't fool proof, just like any other strategy. Plenty of times the market will sell off on good news and vice versa. You have to pay attention to the market climate and mood to know how to trade news. News is definitely the biggest market mover and shouldn't be ignored.
That will not work over time. 2008....good news came out frequently even though it was a shit market. Market would move straight up and 100%+ retracements would occur almost all the time. I faded good news all the time during 2007/2008. 2009 rolls in and that stopped working. Had to start buying good news and buying bad news. See my point?