The news is meaningless, why is it meaningless because the big investment houses have the news days before the release. Donât let the news seep into your subconscious mind, protect your thoughts, that is so powerful to remain independent, just make yourself available to take what ever the market if offering at that moment. Stay neutral be flexible, and IGNOR THE NEWS!!!!!!!
I have done exactly what you did today. Just learn from it. BTW. There is no such thing as "money I can lose". Never say "I have here 10K that I can lose". Check this: http://www.elearnenglishlanguage.com/difficulties/looselose.html
That's what YOU do. I do not and I really doubt you should be advocating a newbie to take a position 1 min before an FOMC announcement just because he has a setup.
I had my set up. I knew at what point I would get in and where i'm getting out win or lose. I did not know about upcoming auction , that's only my fault. I had a good lesson. I traded bund purely of technical analysis betting against break out of recent resistance at 121.00. I negleted risk management and lost about 10% of my money in one trade, as I was overconfident, that the same story going to happen againg like almost every day for last two weeks . Price going up during the day, starting to decline sharply only at the end of the day as proffs geting in the market. Next morning open sharply lower. 9-10AM GMT the best time to cover.
Never risk more than 1.00% of your account equity on a single trade. Some say 2-3% I like 1.00%. Trade less but trade better. Only take the best trades, build up your confidence.
If he has proper risk management in place it won't matter. There may be a little slippage but the point that youâre missing is to execute. It may turn out to be a huge winner, and if it does not the risk has been managed. I know of no other feeling worse than having a setup in place and not taking it, only to watch the market move in your direction without you because you were afraid of the news. Iâm here to take what ever the market is offering, thatâs my job and I love it. Now back to work Ciao!
I think the point that YOU'RE missing is that mkt moving news is an unknown variable (how the mkt reacts to that news). And one that can drastically alter the landscape of the mkt that day. Your essentially saying that your method, based on things other than guessing how the mkt will react to major news, is somehow still valid when that news hits. You can rationalize it any way you want but your just gambling when you trade this way. You're hoping that your method somehow puts you on the right side when news, that you cannot possibly know, hits the mkt. You're right to have a stop in place because what you're doing is just GAMBLING. Alex, I would suggest against listening to his advice of trading before major news. Watch on your own and determine how you feel about it after you've seen more days/weeks/months. Candle man is a straight gambler.
Agree with RR here... You always need to know what news is coming out, whether or not it will move the mkt and how you expect it to move the mkt. You can then make an informed decision whether or not you want to hold a position over whatever figures are being released. Some people trade the news, some people avoid the news like the plague, but everyone I know who trades knows what's coming out and when. As to the auction, of course the "investment houses" don't know how the auction will go, that's a completely silly notion. They can make educated guesses, based on a variety of factors, but there's no way to know. Firstly, if they did know the mkt wouldn't move when auction results come out. Secondly, the whole point of indirect bids in UST auctions is that they are submitted by the bidder (usually a foreign CB) to the Treasury, without any intermediation. As a result, nobody knows what the indirect bids are going to be.
The point is - he got hit by a train and didn't know he was even standing on the tracks. "As to the auction, of course the "investment houses" don't know how the auction will go, that's a completely silly notion" Unless you worked for Solly.