Chronicle of a Death Foretold ?

19:00 GMT +1.

London and Europe closed.
St. Louis Fed President Poole mixed comments (17:00)
US entering choppy lunch time at least until Fed Governor Warsh Speaks (20:00).

Close the day with a profit of 16 pips in two trades in the morning and 8 pips in one trade in the afternoon.

jjrvat

 

Good luck jjrvat!

 

Thank you datamerc !!!

 

Fed Governor Warsh Comments left me with an upside short term bias for the japanese open at 2:00 AM ... but just feelings. For me i will just wait for tomorrow european opening.
jjrvat

 

I thought you didn't trade the news in the short term?

 

I dont. I dont trade right after the news (thats short term for me). I just wait the news to determine the direction of the trend. I wait to the fundamentals behind the news to settle down and only make a trade after I confirm all the steps in my system.

This process can take hours (thats not short term for me).

The comments just make me think that MAYBE there is going to be long opportunities in the next 6 hours after the japanese market opening.

jjrvat

 

Ok, I guess we just have different definitions of short term.

 

Actually, you have a good point.

For me, one of the most difficult parts of trading was determining the timeframes (What its short, intermediate and long). Only one timeframe and you get hit by a change in the longer trend ... two many timeframes and you paralyze because you dont know what to follow ....

That´s why in my system I use M10 to determine direction as an intermediate time, M2 for entries and exits in the short term and the daily pivots as a major key supports and resistance zone in the long frame.

jjrvat

 

Based on your definition I think you are just saying that you don't follow knee-jerk reactions to news, which sometimes reverse because people tend to react before getting the full story.

 

I personally find trading the news very difficult. I think its the closest thing to gambling ... but of course some people make a living of that (do they?).

I agree of what you said. Its true most people are attracted to quick and large profits and they dont pay attention at what the news really mean.

I try to follow the big institutional traders (at least try in theory). Let the masses of news speculator kill each other and enter when everything is settle down....

In my experience I have noticed that most of the peaks during the news dont continue in the very short time because the institutional traders and big speculators look first to get rid of all small speculators stops.

In other words they act against the fundamentals of the news in the following minutes or so and then after all the price is way below or above the expectations they enter the market and make a new trend.