Does anyone try and jump into a position after a Fundamental announcement has been re

Discussion in 'Forex' started by skepticaltrader, Aug 22, 2005.

  1. skepticaltrader

    skepticaltrader Guest

    Is there anyone out there that tries to jump into a position in the Forex market after a Fundamental announcement has been read.

    I've been able to do that with some success, hoping to get in before the big move and ride the coat tails of the big banks.

    I can sometimes jump into a postion while observing the Tick action on e-signal. In e-signal the Forex data is sent by over 100 banks. If you watch the action carefully you can usually determine which way the market will move by some of the early action from these banks. Sometimes the market doesn't move at all after an announcement, so those times you can't really make any money, but it seems to be the easiest way to make quick money, or lose depending on weather you clicked the right button in time.

    Is there anyone else who's tried this maneuver?

  2. the infamous mr Spanton ... of a certain
    forex trading firm .... used to say at his seminars

    to wait for the retracement of the spike after the
    fundamental news and to go with the position of the initial move at that point

    note ... I never traded for his group and perhaps
    my recollection of his tech. anal. approach on fund.
    news is not entirely correct ...

  3. skepticaltrader

    skepticaltrader Guest

    Sounds like good advice from Mr. Spanton. I've noticed that after I jump into a position I almost always have to get out quick, or else I panic when the position goes the opposite way. The retracement is a good way to jump back into a position and ride it for more profit.

    At first I was jumping into a position only to get out in a matter of seconds and then the currency would retrace. After It has retraced and started to go in the intended position I usually have to jump on it very quickly to ride it for more profit.

    I guess this type of trading beats having to figure out where the currency is going to go next and the good thing is that there is usually a Fundamental announcement somewhere everyday on any of the different currencies than are traded.

    I guess you could call me a Fundamentalist trader. (Not really) but it sounds good and its profitable.
  4. sure, I jump in.

    the other way.

  5. Rather than getting locked into a set of rules with regards to how the market is supposed to act, I try to simply go with the flow. When the pattern of "jolt, retrace and continue" on news reports goes out the window, "go with the flow" will still be operative.
  6. Good idea. But remember where the price was before the news - if it goes up, then down and break this level, you most of the times have a very good short.
  7. Yes, it can be vary profitable. But if you had a Bloomberg or Reuters newswire you could get the whole move - like the banks and the big traders.
  8. Yes, the retracement is a good way to go in and try to ride the move. But keep a close stop. I never risk more than 10 pips i news trading.
  9. misha7


    It is because of this kind of "advice" that Mr. Spanton has not made a single buck himself in fx trading - I guess it's much more convenient (and profitable) to "coach" others
  10. More than anything, I've found that news trading requires speed and decisiveness in taking action.

    Each report has its own particular nuances to it, and each report may differ from its historical patterns. For instance I've classified the major reports, and of those some tend to lead to what I define as "trend days" and other reports tend to lead to what I define as more "trading range" days. But even here, this is only a tendency, not a sure thing so flexibility and good observation skills are also important for news trading.
    #10     Aug 29, 2005