Most of the time it is difficult to catch the first big wave when news arrive, but if you wait, then get in after small retracement or pause, you can make nice sums of money. Btw. price moves in wave. In this case news gives you confidence to enter trade. I shall give you my own experience. Around six months ago I was short euro against usd, market was my side I am up 15 pips, then 7 am central time suddenly euro jumped in seconds 90 pips against me, and blew away my stoploss of 30 pips. I checked the news, realized that euro was not going down for some time, so closed my short position entered long euro after the retracement and made nice profit after my loss. Same with US stock market after everybody knew Iraq war going to end soon, and then I went long. The idea is to let other people take the risk in the beginning of the trend, then just ride the middle fat part of it, and get out when the whole market does 10% correction.
OK, but we had 2 or 3 traders in this thread who said that they traded like you. I suppose most traders only look at the charts - and don't try to combine this with a fundamental approach.
AAAAAHHH! NOW WE'RE GETTING SOMEWHERE!!! OK, so you CAN'T backtest news trading. But you've backtested your system before you traded it, right? And did it work well without news? I assume it did, otherwise you wouldn't be trading it. So why not trade it without news? Have you verified that reference to news improves your system performance? If so, how have you verified it? Ah, now only price makes your system signals. Well that's good to know isn't it? How the heck do you use news as an exit signal? Btw I'm never angry, I'm the sunniest spirit. The post of mine you quoted showed no anger whatsoever, perhaps I am undersensitive or you are paranoid - or both.
I agree. But why not try to learn a thing or two from him? P.S. Soros also started as a little trader. In fact he was very poor when he was a young man.
Yes, that's a very valid argument. In the case of entering retracements (particularly the first) I totally agree on that. It's a lot less risky than trying to pick bottoms / tops, and it's got a very high R:R. I think I've posted something similar somewhere on this thread already. Excellent comment!
A news-wizard!? LOL. A new word for me. I am ready for the gunfire. Bring it on, as Kerry says. But I am no hero like Kerry, so I suppose I don't will trade the system in a period of chop.
LOL! Just because they look at charts doesn't mean they trade like me! Give me a break man! That's like saying I am under the sea when scuba diving, so I'm automatically related to the hammerhead shark, jellyfish, and deep sea angler fish. You try to combine your technical plays with a fundamental approach? Well, let's just re-iterate this: You're a day trader, right? Your trades on Forex can essentially be construed as scalps or at least short-term trades. And you want to involve fundamental analysis into day trading? Good Luck.
Hi again, Thank you. Well, both Jay and keving1 compared their trading style with yours. Yes, I try to involve fundamental analysis into day trading. The news like economic reports are fundamental, I suppose?