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


    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 ?