Trade the news? Why not fade the news?

C

crgarcia

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.
 
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.
 
Quote from my2cts:

Haven't you ever heard the old expression "buy the rumor, sell the news"?
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Exactly!, that's why I find absurd to trade the news.
 
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