If your swing trading than news driven moves are more suspect of failing since the uninformed mob trades off of news and is driving the move, while the smart money is usually selling into this. There are some news exceptions like earnings that can break a stock out of a pattern on big volume (50%-300% of avg volume) and send the price into a sustaining directional move for days/weeks/months. Bottom line, most of my swing trades work best when the move proceeds the news - not when the news creates the move.
should I take trades when news causes price to move into my entry level?
- Thread starter iamnewuser911
- Start date
iamnewuser911,
Most experienced traders will recommend not trading during economic data release because your trading strategy may not technically work for this big volume price movement of the day.
I personally do not trade during the news times, however, I have trade to trade during news days and found it more stressful/risky cause prices would move to widely and too fast.
I put it to you like this "if it makes money, it makes sense", so you now have to determine if trading during news times makes money. If trading during news times make money for you, then all means, please trade during news time. Keep a record of your performance over about +50-100 (more is better) trades and see how you do.
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Yes, because always some kind of news going on, even when the NYSE has been closed[ 911, plus an older prayer + fasting close]. Partial disclosure, bear markets do NOT have much support @all,and SPY is in a mature, mature bull market; some may have bought+profitable past 50 days,OK. BUT not meaning i would buy[longs] next 50 days, even though made longs profits past 50 days................................................Really need more info, wisdom is profitable to direct. What works in a bear market , may not work in a bull much @ all.