MoneyTec 2.0 - Online Forex Traders & Brokers Social Networking Community » Trading Talk » Fundamental Trading

[rollingstone]

Nothing big today, but a solid 25 pips on the small up move after the data, and a level trade when it tried to come back down, still better than trying to trade the actual release.

Confirms that you cannot "work out" the direction using only fundamentals in the short term, the news story I read after the release said the figures were mildly dollar positive, and the market went up, not much but enough to take out a few stops if you had gone by the news releases and not what the market was actually doing.

[Baruch]

A fundamental system (yes, it's true!):

http://electricsavant.com/WordPress

and

www.electricsavant.com

[rollingstone]

Sorry Baruch, I don't understand what you are saying.

[Baruch]

Originally Posted by rollingstone

Sorry Baruch, I don't understand what you are saying.

What I am saying is that you can also trade the rate fundamentals. Michael B. has made a (free) system, Cash & Carry, to do just that. I don't know if it works, but it's a good idea to test in real trading if it does.

[FxKitty]

Originally Posted by rollingstone

It's nothing to do with servers, it's due to the fact that if the price jumps 100 pips in 5 seconds after a major release, all the prices in between don't exist, there simple not available to you, so your stop loss at -20 will be filled at the next available price, which could be -100

hmm i just asked my friend and he said it's possible to put in orders pretty soon after news release? =o

[TheWolf]

Originally Posted by FxKitty

hmm i just asked my friend and he said it's possible to put in orders pretty soon after news release? =o

It's possible most of the time. Depends on the news as well, when there's easy money around, these are difficult ones to get on to. Also depends on which broker you're with I think.

[duvalin]

rollingstone is correct on how to trade the news. i only trade few days each month and have done very well. i wonder how many people trade this way, probably not too many. it is unfortunate that too many people are bogged down by indicators and such. while they are deciphering what their indicators are telling them, i have been learning/teaching myself to trade the news, the volatility.

here is my equation on trading:

volatility = high risk = high return

i do admit that it is not for everyone though. trading the volatility does require some sense of being in tune with the market.

happy trading people!

[TheWolf]

What are people's opinions on putting buy and stop orders of around 10-15 pips just before news release?

[idejan]

Originally Posted by duvalin

...
here is my equation on trading:

volatility = high risk = high return

...

volatility = high risk = X (where X could be high return or high loss)

this is the proper equation I think, hope you don't mind the change.
Best to all
ID

[lifegauge]

Originally Posted by TheWolf

What are people's opinions on putting buy and stop orders of around 10-15 pips just before news release?

This sounds like an interesting notion, but it probably wouldn't work very well for not-too-strong news releases. Take the USD example given in the 1st page, USD drops on bad news, but rebounds back on track.

Unless you also put a tight take profit target for both your limit orders, the market might not hit your take profit and end up triggering both orders in that short time. This is assuming that you 're not seated in front of your computer when the market news is announced, because of course if you are you would manually close the other limit order once 1 is triggered.

Summary: You will need to know how much profit to take before the market rebounds!

[proedge_joe]

As stated before, your order can be placed 10-15 pips away but this does not mean you'll be filled at your price.

Originally Posted by TheWolf

What are people's opinions on putting buy and stop orders of around 10-15 pips just before news release?

[sunnydiv]

one thing that i have seen is, after the initial movement market moves back (at 2 to 15 minutes to release) around 10 to 15 pips and then continues on its way .

that is a good time to grab some pips but sadly (i use ) and the spread is killer at the time 5 to 10 pips makes me sad i tell ya