Use news to trade Forex...

Discussion in 'Forex Trading' started by manyit, Dec 2, 2006.

  1. manyit

    manyit

    Hi,

    As a new trader, I understand that news can dramatically twist the price. I have seen price jumping up and down or move more than 100 pips in minutes.

    Some traders have suggested exit your trade before news and stop using technical analysis during that 30-minute news annoucement period.

    Would you please share your opinion what shall be before, during, and after an important news, i.e. FOMC Rate Announcement, Trade Balance, etc?

    And, I wonder anyone is ONLY using the news to trade Forex within the 30-60 minutes? Not using other methods at all???

    Thank you in advance.

    Clement
     
  2. I use the news to tell me when to stay out of an entry...
     
  3. Scalping news.....if you're consistently good at it you'll eventually have trouble getting fills, if you're bad at it then you'll lose your shirt, kinda a lose/lose situation.

    NFP today and the FX market is like a graveyard, most are sidelined which should probably tell you something.


    Mick
     
  4. why if you are conistently good, you'll end up having trouble getting fills? will the brokers (IB?) start treating you differently if you make good trades?
     

  5. They get a little upset when you start taking their money, yes :)
     
  6. I was under the impression that making money using forex on IB does not mean IB is losing money against your trades. I thought they match against other clients or banks. Never taking the other side themselves. I could be wrong.
     

  7. Sorry, I was referring more to your average bucket shops who fill market orders instantly no matter what the market conditions.

    How would you get filled on a ECN style platform though? Who would want to buy your dollars when NFP comes out 100k less than expected?

    Mick
     
  8. A hell of a lot of people.
     

  9. Other news traders I guess :)
     
  10. mm,

    when your right...well...your right. But this would apply to Currency Futures also..

    NFP today and the FX market is like a graveyard, most are sidelined which should probably tell you something.
     
    #10     Dec 9, 2006