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.
    Nia likes this.
  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.

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