Don't trade on news release if you don't understand market

[Daisy]

Well, if you wait for a trend then you should be able to scalp in news. I think when it comes to news, its for scalper and not for long term trader. In long term trade, you want to buy low but sometimes news produce really high price and it can produce low price at time too or a dip so low that it can wipe out a long term account. So, its very dangerous for certain types of trades but if you're just scalping, you can catch it and then scalp it and then you will get out of it so its not too scary.

 

[riddick09]

It seems though, you don't remember that there are news that effects are in long term and not short terms only. You will have the effects even for months because of a single news that was released a long time. Thus, its not only the scalpers who can be advantageous in these times but other traders as well, considering they understand how those news will influence the market.

 

[Cutiekc]

News assists on making prediction in the sense that when we have good source of attaining accurate news like the cnn on TV then we would have to be more cautious when we have some serious news because they do reflects in the market. But then, we ought to be sure before following news.

 

[Daisy]

News can be so bad for your long term trades. I mean if you leave it over night, it will either wipe out your account or you will be taking out at a loss. Cause some bad news are so powerful that the pairs will not behave like the way you think it would. I mean recently, I saw the huge difference the US Capitol hill debt ceiling debates made on certain pairs and the shut down of the White House as well. News are so detrimental so we must keep up with it daily.

 

[Pettyeve]

It is not good for a trader who don't know how to trade on news to trade on it. High impact news like the NFP will make the forex trading market to make a sharp movement. This thing will also cause some major movement that the trader who does not understand it will fall easily to it.

 

[Decub]

It is more than an advice because news can easily get you confused when you don't know how to trade with it. It is always better for a trader to trade when he has a clearer vision of the market. A good understanding of the market will give a trader a better knowledge than trading when things look strange.

 

[kasual]

High impact news can create spike in market. Which enabling traders to react fast. Sometimes the market move around 100 pips first before it start to go against them, if traders late to close positions, their profit will turn to loss result. So, I do agree, if traders don’t understand market situations, and don’t know how to take advantage from high impact news, better they are stay away from market.

 

[rexway]

that is why before we attempt to trade in forex if the news is been release then I guess that we must always be sure that we allow some comfirmation to take place before we can go ahead to do just that trade which we where waiting for

 

[tray]

Yes its very risky to trade on the market which you have no comfirmation this is far more than risky because you might even fail when the reversal occure its always important to allow the trend give clear indication of the direction

 

[Svetlana Loboda]

As we've already known, there was important event today: RBA Interest Rate decision.

Interest rate decreased 0.25%, from 2.75% to 2.5%. Everything happened as many analysts expected.

Since interest rate decreased, some of you might think that AUD must decline after rate cut. Well, let's watch this:

AUDUSD: +0.63%
AUDJPY: +0.46%
EURAUD: -0.51%
GBPAUD: -0.61

AUD has been rising after rate cut but why? This is called "buy the rumour, sell the fact" and Wikipedia explains:


Therefore, if you are not experienced traders, especially beginners, you should never try to trade on news release.

By and large, that’s the true fact! News trading is always difficult; the actual meaning of news events are too complicated; only pro traders can understand the order flow behind the specific news session! Till now I am learning.

 

[Lee Mark]

By and large, that’s the true fact! News trading is always difficult; the actual meaning of news events are too complicated; only pro traders can understand the order flow behind the specific news session! Till now I am learning.

Nice to know that, you are learning and preparing yourself! Yes, don’t jump before until you are not sure about your trading skill! By the way, I am a news trader, I always enjoy high voltage news session whatever the trading result is!

 

[lioneld]

I think one of the worst mistakes one would make is trading on news when he isn't sure of how the market is moving. More so, to avoid trading with reliance to data supplied by unconfirmed Forex news sites.

You are right! But I see, many new traders are doing news trading although they have no knowledge on the fundamental analysis! They are basically trying to make quick money by using high voltage news sessions!

 

[LorrainMor]

Making trading decisions based on significant market news can be a good idea but if you are unable to take answers from the news then it is better to change the use of analytical tools. You can move forward to easier use of analytical tools, like pivot pints, candle stick charting, moving average and forex signals. Use of technical indicators is somehow easier than use of fundamental perspective of analysis.

 

[lioneld]

Making trading decisions based on significant market news can be a good idea but if you are unable to take answers from the news then it is better to change the use of analytical tools. You can move forward to easier use of analytical tools, like pivot pints, candle stick charting, moving average and forex signals. Use of technical indicators is somehow easier than use of fundamental perspective of analysis.

Agree with your last line; but I see chart analysis provides more info than the technical tools.

 

[Oscar Shumack]

Yes. It is very important to understand the market.