Jul 12 2010
Trading economic live news announcements can be the most worthwhile form of forex day trading. With price jumps of greater than 50 points inside a time span of seconds, a person can make a months worth of pips within a few seconds. Within this fx editorial we will inspect fx live news trading along with how you can day trade economic live news successfully, what methods do lead to even better profits, plus what to keep away from when
forex day trading news releases.
Initially let's examine how someone can day trade live fx news successfully. Without a hesitation the first preliminary spike right as the economic news is released is the fastest most dependable method to make money with day trading fx live news. This type of day trading represents 1 problem however. A trader cannot, no matter how hasty you get the financial figures cannot push the buy or sell key manually before the price has already spiked. That is the beauty of the forex news trading software program from
Fast Economic News. Their propriotory forex economic news day trading software program not merely supplies you with the numbers the millisecond there released from government confine, but furthermore it is able to press buy or sell for you robotically if the actual fx news deviates from the projected number, by the criteria you sets.
Let's use an example to illustrate our point. Take a look at the 1M chart of the GBP/JPY from last Friday the 2nd of July 2010 or whichever other NFP for that matter. On that occasion the un-employment rate dropped by .3% which sent the GBP/JPY shooting up about one hundred pips from the pre-release price to the top of the spike, all in less than 1 minute! Never would someone be fast enough to acquire the news release, process the data inside your head, plus after that push sell or buy in time to jump in on the spike, but by means of the Secret News Weapon from Fast Economic News that is finally possable!
We have now covered in my outlook the top strategy to trade currency market news announcements and also the tool to do it, however what about things we ought to avoid when fx trading the news. First and foremost ignorance is not bliss when it comes to
forex news trading. Without having the figures and having it as fast or faster than everyone else a trader can get burned! Second day trading following the initial spike will be risky If you have been day trading economic news releases for any measure of time you have no doubt experienced positive fx news drive the price downward while it should be headed up founded on the economic news release. By taking advantage of the Secret News Weapon you have the option to be in and out on the news price spike before the forex market has time to fake everybody else out. Dont leave your gain to good fortune, go acquire your trial of the Secret News Weapon and experience the actual profit potential of trading real-time fx news spikes!
Apr 15 2010
Download this
Forex News Trading FREE Report by Henry Liu. Get this powerful Forex
Swing Trading End of Day Trading Kit by Bill Poulos FREE. Learn this powerful
Fibonacci Retracement method FREE that pulls 500+ pips per trade! Henry Liu on News Trading: I get asked this question a lot, and honestly I've to say there are 2 different answers on this:
1. News SPIKE Trading is pretty much dead, with brokers widening spread, delay execution,
and or just downright slip your entries, you're lucky to break even after a high impact
news releases, let alone trying to make some profits...
2. News Trading however, on the other hand, is alive and well, and as a news trader and
fundamental analysis trader for over 5 years, I've to say that it's still one of the best trading
methods in Forex that provides consistency and profits.
So the next question is, how to trade news properly while avoiding spike trading the news? The
answer is, Retracement Trade. Retracement Trading is to wait after the market has moved initially after the news, i.e. wait until the "spike" is over, and after the market retraces (or comes back) to a certain level you jump in since the market should make another attempt to retest the spike... And this usually take place if the release is strong enough to create momentum.
I think the toughest part of Retracement Trade is to calculate your entry, how long should you
wait? where should you enter? and where should you close the trade? Well, I just uploaded a video on my blog showing you what I do to calculate retracement on my live account everyday, and this video is from a actual trading session with my Mastermind Mentoring group on NFP Friday, April 2, 2010. No theories or hypothesis, but 100% facts backed by results.
Retracement News Trading Insight - Double Fibonacci Method
This video is just my way of saying THANK YOU! There is no obligation and you don't even
need to opt-in. Just watch it if you got a few minutes to spare. I am planning a secret project to help new Forex traders, and I like to invite you to join this project once it's available. So please help me out as I'll be counting on you :)
Bill Poulos: While researching new ways to save time trading Forex (without sacrificing pips), I kind of stumbled upon 2 'discoveries' that may surprise you. The first one has to do with a 'flaw' in how 90% or more of Forex traders think about trading these markets. It's deceptively simple...
-yet it led me to develop a pretty unusual technique around 'scalping' the 'sweet spots' of the best Forex markets.
Watch this brand new video I just recorded that reveals these discoveries, along with my unusual 'scalping' technique. If you really, really enjoy staring at your computer all day long day trading every nook & cranny of the markets, then you might not like this video, because it shows you how to spend LESS time trading and MORE time 'having a life'.
Nov 12 2009
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Forex Scalping Cheatsheets.
Forex News Trading is a highly profitable way of making pips if you know how to trade the news correctly. You make money from the volatility in the forex market. When some news of fundamental importance is released to the market, the market reacts in a nervous and jittery manner. Many traders look for this type of volatility in the market to make a killing.
But many traders get themselves killed by the market instead. So only trade news if you are experienced and know how to do it. The markets are highly volatile at the time of news release. Most traders prefer to stay out of the market at those times. You never know how the market is going to react to a surprise news so many professional traders will advise you to keep yourself away from the market at those times. By closing all your open trades before the release of the news you make yourself safe.
Then why do some traders try to jump into the market at such times. The reason is if you know how to trade the news correctly, you can sometimes make hundreds of pips in minutes. This type of windfall gains lure this mavericks into trading the news when everyone wants to hold the breadth.
An important question that comes to your mind is what type of news makes the market nervous. Anything that is unexpected is going to make the markets nervous. Suppose the market is expecting a certain housing sales figures but when the housing sales figures are released, they are unexpected! This will make the market nervous. The prices will suddenly start shooting up and down without any reason. It takes sometime for the market to understand the importance of the news and settle down. This time may be a few minutes to a few hours.
What you need to do is take a look at the monthly economic news release calender and mark the times when news of fundamental nature like the Non Farmpayroll (NFP) figures, GDP figures, Consumer Confidence figures, sudden interest rate changes by the Central Banks, CPI figures and so on are released. Just Google Economic News Release and you will find this information for US, Canada, EU etc.
Just observe how much volatile the market becomes at these times by trading on your demo account. The liquidity in the market thins out, the spreads widen and it becomes really difficult not to get your stops tripped. If you are risk averse then you need to stay away from the market at such times.
For those risk takers who want to make tons of pips in such times, news trading is a great opportunity. Within a matter of few minutes you can make up to a hundred pips easily if you are trading at the right time! The most market moving report is the NFP report!
Jul 21 2009
You should understand the discounting effect in the forex market. Often new traders get confused and ask why a particular currency has rallied despite the negative economic figures about that country. Sometimes, the currency can decline on the release of positive news.Learn
swing trading.
Try Netpicks
forex signals free.These types of effects confuse and bewilder new forex traders. When there is good economic news about United States, commonsense says that US Dollar should appreciate. Similarly when there is bad economic news and there are signs of economic weakness, like unemployment and huge budget deficits, commonsense tell that US Dollar should depreciate.You should develop a mechanical and rule based
forex trading system.
What is the reason that a particular currency goes up despite bad economic performance of that country or the currency goes down despite good economic performance of that country? This can be attributed to the discounting mechanism of the forex market.
Traders try to take into consideration the future expectations about the currency in their present trading decisions. The market’s inbuilt discounting mechanism is formed by the anticipatory reaction of the traders.
If the traders think that Japan will suffer from the rising oil prices in the near or medium term, they will be bearish on JPY and go short now, thus pushing down the currency. But if the traders have a positive view of the Japanese economy, they will be bullish on JPY and go long now, thus pushing up the currency.
Currency prices integrate the market’s expectations about the future in this way. You must have heard the famous saying: “Buy on the rumor and sell on the news.” This is somewhat similar to this saying. Market has already made up its estimates of those figures based on the work of analyst and economists in the major trading institutions like banks or funds even before the economic data is released for public consumption.
Suppose, the majority opinion in the market is that the US Consumer Confidence Index to show a worse figure than the previous month. Way before the US Consumer Confidence Survey results are released to the public, market has already compounded that information in the exchange rate of say EUR/USD.
When the US Consumer Confidence Survey figures are released, what will move the market is the amount of deviation between the expectation and the actual figures. The currency pair EUR/USD was rallying due to poor market sentiment for USD.
This is old news for the market if the released figures are almost the same as expected. No surprise was caused in the market. This information has already been compounded into the currency prices.
The release of the anticipated news or data can often cause the currency price to move in the opposite direction initially to where the market had positioned itself before the release of the news. After sometime the market adjust itself and the status quo prevails.
Suppose the US Consumer Confidence Index figures turn out to be almost the same as expected. EUR/USD pair may even end up declining with the USD strengthening even in the face of a negative consumer confidence number.
This contrarian market reaction is the result of traders who had gone long on EUR/USD closing their positions and taking profit on the news release. Thus the lack of any deviation between the expected and the actual figures may cause the currency pair to move sideways or even move in the opposite direction as the status quo remains.
Jul 21 2009
Learn
forex scalping.There are no rules or restrictions against insider trading in the world of forex trading. Anyone who possesses information that is known only to a select few can and do trade that information in the forex market. First trade on your
forex demo account.
Publicly released news is disseminated to the various newswires. Any trader who has access to these newswire services can tap into that information and react accordingly in the forex market. You should develop your own
forex trading system.
However, you must know that the institutional players do get information that retail traders don’t have. Institutional players have access to the order book of their clients. They know the location of their market orders. They may also know something that others don’t through their contacts in the industry.
At times, this isolated news access may not translate into real market action if other players don’t have that information. However, sometimes the news may give an unfair advantage to the institutional players.
In other words, forex market is dependent on news. There will be negligible or little price movements in the market if there is no news. You can say the currencies move based on the technicals. Even then, these technicals have been established previously by news or expectation of future news.
The market reaction to the news is specific as it depends on both the type of medium that the news is transmitted on and the type of news that is being released. The market reaction to the news is staggered.
The online news service relay the information to the computer monitors of the traders at almost the same time as the market event occurs with very slight delay. Most active traders get their information from these online market news services.
However, there are many other less active traders who feel they don’t need real time news so they don’t subscribe to these online news services. They rely on market commentaries written by analysts and published on websites or in newspapers. The market reaction can thus be staggered.
Market reaction may be immediate within the first few second from those who receive real time news to a more delayed reaction from those who obtain the same news hours or even days later.
Forex economic calendar is usually packed with an average of twenty economic news releases per trading day. The market reacts differently to different news. Some news may produce little or no reaction at all.
During times of scheduled news releases, currency prices adjust very rapidly to the released data. You have to be selective to what news to focus on as the market reacts to a varying degree in relation to the type of news that is released.
Forex market reacts to what of the news rather than the why. For example, the currency prices will move as the market reacts to the better than expected unemployment figures. The market will not have time to consider why the unemployment figures are better this month as compared to the last month. Trading is all about taking advantage of what of the news. If you are more concerned about the why of the news rather than what of the news than you should stop trading and become an analyst.
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