Forex trading economic news?

Discussion in 'Forex Trading' started by eethie777, Aug 7, 2009.

  1. Is scalping the economic news a viable system for forex trading. I noticed todays unemployment surprise would have been amazing having gone long the dollar against the yen, and the other days Fed announcement in the UK was great having shorted the pound. I'm sure that the price spikes can be very quick and a market order will probably have some slippage, but is this a feasable way to trade? Afterall the Forex market is super liquid so it looks like you can make +100 pips on the upside and bail out quick for a 10-20 pip loss. I know it is obviously important to pick the right currency pair, because the EUR/USD and GPB/USD got whipsawed on the news today. Any feedback would be appreciated.
  2. no and DAFS
  3. DAFS wtf does that mean.
  4. Just out of curiosity... Why would you think you can make money trading the news, unless you have a way to forecast the mkt-moving events better than the mkt as a whole?

    Or maybe I misunderstand and you intend to trade right AFTER the announcement to follow momentum or smth?
  5. DAFS Direct Access File System
    DAFS Diffraction Anomalous Fine Structure
    DAFS Document Attribute Format Specification
    DAFS Department of Agriculture & Fisheries (Scotland)
    DAFS Damage Analysis and Fundamental Studies
    DAFS Department of Agriculture, Forest Service
    DAFS Direct Aerial Fire Support
    DAFS Defense Agencies Financial Service
    DAFS Decoder-Assisted Frame Synchronization

    ....but probably none of the above.

    I think it should have been DAFSQ myself :)
  6. Forex


    I still don't understand why the market moves the way it does after major news.
    Later on so called "experts" are able to explain what happened and why.
  7. My intention is to see the market reacion first then to jump in. That is why it is essential to pick the right currency pair because some currency pairs can have multilple reactions. The recent moves have yielded 250 pip gains, so there would have been plenty of time to pile in. To me the risk to reward seems right, but the news needs to worthy of the trade, big news.
  8. eeth yes its possible I dont do it but i know people who do trading NONFARM PAYROLL releases.

    the real problem just like any trading style is figuring out the real moves sometime news will be released that may suprise but price acts opposite of what it should. It has to do with the Order Flow.

    A big thing as well with trading the news is like playing poker you have a good hand so you build into the position bringing them in. lets say you see price moving to the upside you can enter buy and strategically enter the position. Lets say you want to trade 100 units on the trade you want it to be weighted towards the bottom of the move and you expect the move to be upward enter less that what you are aiming to be in at a full position like 20 units... if the trade goes against you take a loss thats smaller than your full risk size.. as price progresses through its move.. you can pick up another entrance at 15 units so your total position is 35 units.. your stop can be place now in a profit zone allowing for capitalization on the move as price progresses continue to enter into your position and increasing your position in profit and it moves until your stopped out... after the initial risk is beat and the 2nd part of the entrance is complete the trade is risk free... and in profit... sometimes the natural elasticity of the market will pull back and stop out in a profitable position but youll make money.. those couple of times price runs and continues to run you can continually enter... make sense? build your risk control around the idea and itll work.

  9. cstfx


    Do a Fucking Search
  10. Yes, makes 100% sense to me, thanks for the feedback nuke. I will go small at the beginning, I aint gonna go big on a trial run.
    #10     Aug 9, 2009