Hi all, I have a question about news trading. I understand news can move the market and it does but I find it hard to trade. Does anyone here trade news and how do you do it? It seems that price does not always move in the direction it should. I was just wondering if there is something I'm missing or maybe I don't understand what the news is saying.
You have to go back in time and look over data from the past and pick a decent amount of deviation (amount deviating from the expected number) and then I use an autoclick program that automatically clicks me into the trade the second the data comes out based on the deviation. I havn't lost a news trade ever.
Do you use Muse or Dustin? What broker do you trade with? I followed a few of Felix's videos, he is a dope. el surdo
Those autoclick programs are a total waste of money. You'll suffer massive slippage. It's true, if there's a big deviation then it doesn't matter because the chances are there'll be a follow through but you'd be better off waiting for a little pullback after the initial spike than using the silly autoclick software that can only get you in at the top/bottom of that initial spike.
Forget about the news trading, it's a waste of time and money. One could have made descent money 3 years ago when NFP moved the cable 200pips one way months after months, and all the Brokers offered a guaranteed entry/stop orders. But that is gone now, and the "new" auto click software wonât help you, cos you'll either get a very bad fill or an order rejection (I tried them). You can try straddle with currency futures and an X-Trader, but the news doesnât move the market as much as they did 2-3years ago. I have made a lot in 2004, less in 2005 and completely stopped trading the news in 2006. Also an overall volatility in EURUSD, GBPUSD dropped very significantly since 2005.
Totally agree, the news used to rock the markets, now days its a mild fizzle (or "fizzlette", using technical jargon). Usually I hedge pre-news, take profits on counter move and let the other side of the hedge follow the news directional bias. Not worth it these days.