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[mnaseertariq]

hi Guys

is there any one who can help me to read the news,mean how i read daily news for any pair and what should i have to read to find that pair is going to upword or downword.

[Rich14304]

mnaseertariq,

At the top of this page is a link for an ecomonic calendar of events listed under "tools".

Review the various news release 'titles"

THEN:

You may find additional information regarding background on HOW TO: by going to babypips. They have a very nice starter (educational) program that I can assurwe you, will benefit YOU.

Click on this link Forex Training Online: Learn Foreign Exchange (FX) Currency Trading

News information direct is listed here:

click on this link: Trading the News: Forex Currency Trading on the News Releases

Please take the time to take babypips FREE course.

The course covers many topics you have been asking about in differant threads.

Once you have some 'background education' it will be easier to explain topics to you.

Hope this helps,

Rich
X

[mnaseertariq]

thanksss buddy actually i have read babypips but i dont find about how i read the fores news how to identify the pair or currency going to strengthen or weak any way thanksss again for reply

[Rich14304]

X

To generally address the Topic: NEWS and the Day Trader

I offer this for your consideration;

News is a highly subjective Topic and is as deep and it is wide in scope IMO. News to a Day Trader becomes a very sharp two-edged sword. The volatility or wide swings in price are not often understood by a Day Trader as ‘good news’ does not necessary mean PRICE will correlate according to the event.

There is much ‘more’ to NEWS than meets the eye or that chart.

To get a handle on NEWS, IMO, it may be of some benefit on getting a handle on the perspectives from the fundamental and day traders’ point of view. Since the Fundamentalist try to move with the NEWS and so do Day Traders.

Understanding the nature of what ‘kind’ of traders there are, becomes an asset. I suspect you are familiar with the two terms mostly referred to Traders as either being Fundamentalist or Technicians.

I can only express from a Day Traders point of view but this is what I perceive as True.

For most practical purposes most Day Traders are TECHNICIANS and this means they are ‘chartists’. Technicians’ spend the TIME pouring thought various charts in an effort to determine the Highest Probability of a security (or spot) movement through various analytical techniques.

Most, if not all, of the background math that supports the Price on the chart is often ignored or underappreciated by the Day Trader. To a Technician, the only thing that is relevant is the PRICE on the Chart and they recognize Price is the reflection of the entire background math, without having to know what that entire math is.

A Fundamentalist studies the math behind the securities and attempts to put some sort of meaning to it, and normally have little use for charts but use the math so they can compare current PRICE to the calculations in order to determine future PRICE direction. A fundamentalist is HIGHLY dependent upon Math, NEWS and TIME (long term average). They also have longer term perspectives regarding investments or period of TIME they intend to be in the market.

A Day Trader is not in the markets for long periods of time, normally. A Fundamentalist is rarely in the market for a short period Trade.

That becomes one of the contrasts between the two, (besides the math), not only in explanations’ of approach to the markets, or their advisement to the prospective or investors, but in the over-all view of market dynamics in general.

These over-all views form strict disciplines as they become the ROOT to approach and that approach is a belief in the system techniques. The variances from a Fundamental view of a Day Trader are the Day Trader approach to trading is reckless and naive and extremely risky.

A Day Trader views the fundamentalist as whatever numbers come up with whatever the belief; since the numbers all appear to be a mathematical model of statistical probabilities based on abstract averages of multiple timeframes. Those timeframes have contract entries and expiries.

Each of the time frames has a multitude of expiries and obligations of those expiries dates may or may not be know, somewhere out into the future

The future is still swayed by politics, as regulations and policies are modified, either extended or reversed or terminated, we haven’t a clue. Then there is the policies and public (and private, some above board, some questionable and some plain scams), industrial, commercial and speculative investors (investments), the numbers become obscure and fails on most mathematical models.

It all becomes a perspective of VOO-DOO math.

Bottom line, as far as the numbers are concerned to a Day Trader, in a sense, we really don’t care, we deal with them.

Keep in mind both have the same desire for Profits, but the approach is nearly 180 degrees at TIMEs in contention with each other. Day Traders are normally regarded as short term investors, sometimes completing trades within seconds, minutes a few hours or maybe a couple or few days and a Fundamentalist is normally regarded as a Long Term trader, which may be weeks, months and even Years.

It is not a secret that NEWS can have a profound effect on PRICE but there is much more going on than would meet the eye. To a Day Trader, as Price usually rockets in both direction and immediately ‘whip-saw’ them out of any positions causing substantial monetary losses. This is supposedly due to high contract exchanges and this creates volatility that Day Traders may have a hard time keeping up with.

Even the functions that Day Traders perform such as normally setting Limits and Stops (or OCO orders) which to a Day Trader are expected to be honored but those orders may be considered much too tight to engage a NEWS event as PRICE seems to ‘gap’ all around ones’ Order and/or those Orders never get filled.

Getting whip-sawed out of a position is one of the unfortunate aspects of short term trading and not the only hazard, as receiving a fill is not always true or honored.

Consideration for the Day Trader would be to understand the attributes of Fundamental Trading and the Math involved so they may consider a MUCH WIDER view of the market dynamics. Also, it should provoke any Day Trader to carefully consider the LEVERAGE used during any economic release.

One of the most common strategies is to forego the release altogether, until AFTER the whip saw and carefully, ever so carefully, position themselves and NEVER take their eye off of that Price. As in a moments TIME, what MAY have been the ‘direction’ is NO MORE and PRICE reverses HARD and FAST. Similar to a second round of ‘whip-saw’, that IMO, was caused intentionally to TRAP Traders.

Remember, as Day Traders, we must be keenly aware of the operating Range the brokers provide for us to trade in. That is indicated by the general band widths across the time frames on the charts.

There is another kind of strategy called a fade which is to simply to understand that Price normally moves contrary to the release PRIOR to the release. Traders are in and out of the market BEFORE the event. If one was observant and carefully analyzed the overnight direction of PRICE leading up to the event, they may gain a somewhat higher probability of actual future movement. When PRICE ‘peeks’ they may also fade the retracement.

There are other kinds of strategies used but the idea here is to say that News is a tricky positioning strategy for the Day Trader. Can it be done? Absolutely it can, but one must be prepared to be swept away which includes LOSS during the event especially if they do not understand what Fundamentals are or how to conduct a trade in wide swings.

It may be of some consideration to the Reader if they would investigate and incorporate a system or strategy that includes both of the techniques, Fundamentals and Day Trading as a part of their education and place that knowledge into their ‘tool-box’.

Being either a Fundamentalist or a Day Trader, IMO, is old school and is out of date with current market activities. Be prepared and learn some of the fundamentals, it will not hurt to do so and the worst it could do, would be helpful.

I need to express this, folks this is NOT a fundamentalist BASH. This is a perspective from a Day Trader. AS Fundamentalist will say this is insane and nonsense. But they have to. They believe that way in order to believe in their system

Fundamentalist are skilled at their craft no different than a Day Trader is to theirs.

IMO, Fundamentalist, in theory, have an advantage in a mid to longer investments using Economic releases as a base and that should be a reflection of PRICE and according to money flow.

It would be IMO whatever direction the decision was, to move the market in the direction that it goes, that is the direction of the trade and as Day Traders, once those guys set in into motion, Day Traders are in for the ride, for as far as the market wants to go, whenever they decide to take it, Day Traders will just wait for the market to decide and until then, the Day Trader will abide their TIME and trade at nearly anytime but they need to know what to look for.

Besides daily hazards the Day Traders needs to pay special attention to trend changes due to policy changes too. This is why knowing something about the fundamentals’ comes in handy. You cannot go wrong trading with the trend. Planning the trades as it becomes a matter of leverage.

News can be a painful experience in knowledge and account size and is definitely not suitable for everybody. Learn what you can and learn for yourself. News is not always good news. Be cautious.

Access an economic calendar, like the one at the top of this page listed, under “TOOLS”, and relate the event leading up to and after the event across pairs. That alone will start a Day Trader towards learning about Fundamentals’.

Gaining insight to the Fundamentals provides insight into trend direction. It is worth investigating. A quick check off the daily and weekly normally provide a ‘trend is your friend’ perspective, but to KNOW why PRICE has moved in that direction is left for investigation into the world of fundamentalism.

I hope this helps,

Rich

X After noting what 'report' is to be released, look up the "title" of that report. Normally you will see something called 'forecast' which is the prediction (they do the math for you). Test this against the actual event on a DEMO and see if Prediction/Forecast correlate with actual PRICE movement.X

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