For those of you thinking of scalping or Trading the News
- Thread starter ElectricSavant
- Start date
I started the last thread about trading news...
Q: What is the difference of market reaction between now and 5 years ago? Would you please elaborate a bit as I am quite new to forex?
Liquidity is surely a big issue here. A big buy order can eat all the Asks... You can see a big order can eat a few pips easily. This is a risky moment...
Thank you.
C.
Q: What is the difference of market reaction between now and 5 years ago? Would you please elaborate a bit as I am quite new to forex?
Liquidity is surely a big issue here. A big buy order can eat all the Asks... You can see a big order can eat a few pips easily. This is a risky moment...
Thank you.
C.
Heres a question for ES or whoever may have the answer. Do you know of any good news sites which release a nice chart of US, EUR etc economic events that could be used for NLP?
Actually, todays action on the EUR, after the ULC and NFP numbers was tradable, there was good liquidity and no gaps. But that having been said, it is not like that all of the time, and all you had was a news spike, then it settled back to its consolidation. So you had to get in and out quickly. I don't trade news because of the gaps and liquidity issues at times, but this would have been a winner up and down.
The Ever No News Trading VIPER
The Ever No News Trading VIPER
netdania
Lon, you are right about news, and market reaction=retail activity, look at the recent news events and it is clear that retail activity drove the moves. As soon as the emotion went away the prices settled back down to where they were, you don't even have to go back years, just this past week. Sometimes it is tradable sometimes not, too much guessing for me, I don't like it.
The Ever No News Trading VIPER
The Ever No News Trading VIPER
To all,
Actually, I know "many" traders who typically trade the ES or the Bund and they trade the forex ONLY when there are news announcements. Some been doing it for years. As far back as calling in there orders before the announcement. I have met one gentlemen in particular, in fact hes a regular et'er himself, that usually drops around 25-50 standard lots every friday, except NFP, on the U.S. Friday 8:30EST News Release. Some consider it the most easy times to trade, during news. I have found it to be quite annoying myself. When I was working with a flat pip rate broker (i.e. InterbankFX) I could never get filled around a news release, and I mean never. The closest i could get filled would be within 20-50 pips of the price I wanted to get in on. When I moved to a variable spread (i.e. real forex broker..lol) the spread during a news release can be as high as 15-20 pips alone and I have also had to set my slippage to accept up to 10 pips on top of that to make sure the order gets filled.
However, most I know that trade the news have some sort of bracket system, which usually includes some kind of safety net for reversing there position and taking a quick profit, etc. By this I mean typically, IMO, most traders trading the news are in before the announcement or have it bracketed for a breakout trade, with a limit or stop..etc.
Is the strategy good? Up for debate. Do I do it? no. Do others do it? yes. Are they profitable? some, more or less the same average of traders that are generally profitable. So it is possible? yes, yes it is. Can I do it sitting in my parents basement on my dads computer? Probably not. lol.
NOTE: Although, someone mention FX Futures earlier. And that is absolutely correct without a doubt. Fills on the FX Futures, around news releases, are alot easier.
Just my 2 cents, but Im a raving lunatic, dont take me word for it. lol.
- secXces
Actually, I know "many" traders who typically trade the ES or the Bund and they trade the forex ONLY when there are news announcements. Some been doing it for years. As far back as calling in there orders before the announcement. I have met one gentlemen in particular, in fact hes a regular et'er himself, that usually drops around 25-50 standard lots every friday, except NFP, on the U.S. Friday 8:30EST News Release. Some consider it the most easy times to trade, during news. I have found it to be quite annoying myself. When I was working with a flat pip rate broker (i.e. InterbankFX) I could never get filled around a news release, and I mean never. The closest i could get filled would be within 20-50 pips of the price I wanted to get in on. When I moved to a variable spread (i.e. real forex broker..lol) the spread during a news release can be as high as 15-20 pips alone and I have also had to set my slippage to accept up to 10 pips on top of that to make sure the order gets filled.
However, most I know that trade the news have some sort of bracket system, which usually includes some kind of safety net for reversing there position and taking a quick profit, etc. By this I mean typically, IMO, most traders trading the news are in before the announcement or have it bracketed for a breakout trade, with a limit or stop..etc.
Is the strategy good? Up for debate. Do I do it? no. Do others do it? yes. Are they profitable? some, more or less the same average of traders that are generally profitable. So it is possible? yes, yes it is. Can I do it sitting in my parents basement on my dads computer? Probably not. lol.
NOTE: Although, someone mention FX Futures earlier. And that is absolutely correct without a doubt. Fills on the FX Futures, around news releases, are alot easier.
Just my 2 cents, but Im a raving lunatic, dont take me word for it. lol.
- secXces
Hi secxces & all
Safety net, is there such a thing on NFP release? Can't say I would have enjoyed being on the wrong side in Aug '04, people were getting filled 150pips away from their stop and coincidentally a week or two after that marketmakers decided they wouldn't guarantee stops after all! Who was it that reversed all the overleveraged profitable trades, FXCM or Refco or someone, news scalpers doing a jig thinking they had trebled their accounts in 5 minutes soon came back down to earth! Placing orders either side of the market prior can end up with both being triggered and double the loss, imho. Is a potential fast buck really worth all that risk?
Maybe it's just me getting too old for all that excitement!
Mick