Trade the news? Why not fade the news?

Discussion in 'Strategy Development' started by crgarcia, Jul 6, 2008.

  1. Usually you'll get a fill at the top/bottom, even if you react fast.

    So why not fade the news?
    Specifically fade a move in reaction to a news report, in the opposite direction of the main trend.

    It is said that a economic report, by itself won't change a trend, which are the result of many factors that developed over time.
     
  2. I make pretty good money fading news, especially economic news but nothing works all the time. If the market takes a huge leap on the news then it's typically not a good idea to fade it, or you have to be extremely patient fading it. You definitely don't want to fade an unemployment report that comes in at 5.5% when 5.0% was expected, for example. It's generally best to hop on the direction of the initial move after a bounce/pull back when the difference between actual and expected is large.
     
  3. my2cts

    my2cts

    Haven't you ever heard the old expression "buy the rumor, sell the news"?
     
  4. Exactly!, that's why I find absurd to trade the news.
     
  5. How about ignore the news, and let support and resistance guide you ?

    Susana