The reason why I don't trade news

Discussion in 'For novice traders' started by Thuto Tuki Baori, Oct 30, 2017.

  1. Thuto Tuki Baori

    Thuto Tuki Baori New Member

    Believe me, news trading can earn you several pips at a very short time but as a technical Forex trader, the charts tell me everything I need to know. I can tell when there is potential new trade setup and I know exactly where to place my entry and exit levels. I find that the charts tell me what is really happening whereas the fundamentals (the news announcements) are an opinion. Some traders will see a news announcement as good news and others will see that same announcement as bad news for an economy. So it's better to trade what you see and not what you think.

    Have a pip filled week.
     
  2. I think the risk factor to me is often why I don’t trade on news. But, I believe as a trader it is must that we are ready for all situations instead of staying with just way.
     
  3. andengireng

    andengireng Member

    Because sometimes news will make price going to the opposite directions, it will make me loss and loss. So in my opinion, please manage your risk if a big news is coming. Not all your predictions become true and the movement is quite fast. But If news going to your direction, it will make you get a big profit.
     
  4. ibm'73

    ibm'73 Active Member

    news factor is very important to be made as our reference as input when conducting forex transactions, but we do not believe too 100%, because the news was sometimes contrary to the results of estimates already in the record, it would be wise if we stick to the principle of analysis we own that we already have.
     
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  5. Tengkorakfx

    Tengkorakfx Member

    It's a safe option to avoid trading when the news is about to be announced. The price itself would move in both direction if the data is not that favorable for both currency, especially when the news is announced in the same market time, like USD and CAD for example.
     
  6. andengireng

    andengireng Member

    In contrast to technical analysis that utilizes the "history" of price movements, in your fundamental analysis it will instead try to "capture" opportunities that might appear to accompany news or economic data related to a particular country which would certainly affect the country's currency. By observing and studying the economic data, as if you are trying to "peek" the possibility of further price movements.
     
  7. Tengkorakfx

    Tengkorakfx Member


    Couldn't agree more with your statement. Since the price history itself will always have an unintended mark, we can just identify on which levels the big bank will put their their big pending orders and what kind of price actions the price manipulators will use to reach certain point. This is what they called 'Price Action'
     
  8. NewbieTrader

    NewbieTrader Member

    which is why some brokers don't allow news trading. it makes sense. news trading can be dangerous for both the trader and the broker itself. i don't news trade because... why should I? :D I make profit with regular forex trading.
     
  9. andengireng

    andengireng Member

    Here we must pay attention to one important thing: market sentiment was made before the news was released. When you read sentences like "if the data supports, then the exchange rate will strengthen", then maybe you think very well waiting until the news is released before opening the order. But it might be a big mistake. There are times when it's better to open an order position one day before the news is released. That is why you need to know the sentiment from the market.
     
  10. broforex

    broforex New Member

    I think , you should trade when there is a big news. Why? Because one important activity that needs to be done by a forex trader is to read daily forex news. This activity is certainly quite draining of time and thought so some traders are reluctant to do it with the reason that they don't feel at home. Though this daily forex news is very important to strengthen analysis and make the right decisions before trading.
     
  11. Tengkorakfx

    Tengkorakfx Member

    Some prefer to trade when big news is coming and some prefer to safe their account and skip the news, sometimes, big news can be a trigger of turning point for a price. You can mark for some monthly news like NFP every first Friday of a month
     
  12. NewbieTrader

    NewbieTrader Member

    because i don't really have the time and sources to follow the news, even the big one, i prefer to sit one out. especially when it's so unpredictable. how about the rest of you, guys?
     
  13. Tengkorakfx

    Tengkorakfx Member

    Well, I prefer it too. By spending some time on the weekend to draw the charts based on what happened and set a trading plan that has a good yield of profits for the next 5 days
     
  14. NewbieTrader

    NewbieTrader Member

    yep. also evaluating what has happened in the previous weekdays. sounds like you have your trading plans covered. nice one :D
     
  15. Tengkorakfx

    Tengkorakfx Member

    Ahahaha... That's how I analyze the market. Draw it down on the weekend and observe the movement on the weekdays. Just make sure to use proper stops there, though..
     

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