FOREX: is trading forex on news releases a viable way to trade forex and what would anyone service would you r
Sunday, October 3rd, 2010 at
5:38 am
which service would you reccommend , is there any good free site that publishes news releases
Tagged with: news releases
Filed under: Business
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Here is a link to the global economic releases this week: http://www.gftforex.com/resources/calendar/calendar.asp
The reaction to these releases is in seconds and the first indication you’ll have that they’re out is that the prices has moved 10, 20, 30 pips or more. You can subscribe to a newsfeed from Reuters or Bloomberg (for about $1200 per year) and get them as they come out but you still need to be quick on the mouse click.
If you try to trade on the news that comes across on free services such as google news, Bloomberg, etc., you’ll go broke.
You need to be in close enough touch with the market as a whole to understand the economic trends and cyclic trends that are going on, trade on those at the right time using technical analysis and if you’re going to be in a trade when the news comes out, it’s best to try to hedge one currency pair against another. For example, in about 2.5 hours, the Reserve Bank of Australia (RBA) Commodity Index is due to be released. You can try to guess whether it is good or bad and place your trade in advance or you can hedge it with another currency so you’re covered whether it is a good or bad report. The latter is safer but things can still go wrong.
IF INVESTING CAN MAKE YOU GREAT RETURNS – IT CAN CAUSE YOU GREAT LOSSES. It is better to not put yourself in front of a train than to hope you can get off the tracks when you see the train coming.
You want to trade Forex? My advice is take the money you want to invest in trading Forex and grab a good travel and vacation book. Pick a vacation spot you would like and book your holiday. Stay there until either your money has run out or the idea of trading Forex as an amateur has been expunged from your mind. If the first eventually comes to pass you have had a nice holiday and you can return to work well rested. If the latter comes to pass you kept some of the money you would have lost.
The GFT forex site below gives a good overview of news releases.
Yes, there are people that trade systems out there that depend on news releases. They are short and sharp trades with shallow stop losses.
If you cannot even afford the news then you should not especulate with currencies from other countries.
Smart move looking for a free site for information on forex. There is so much info available on the net you can keep your money in your pocket. I like FXStreet.com for some good training on both technical and fundamental (news) style of trading. They also host some free webinars that you should sign up for. I really like the one with Wayne McDonell during the Non-Farm Payroll on the first Friday of each month. Pretty interesting.
Babypips.com is another awesome site for free education.
There are alot of people that lose money trading Forex. You can actually find quite a few of them on sites like this. Keep studying, trade free demo accounts until you have a good track record and then proceed slowly.
Your primary goal should always be capital preservation. Don’t trade on greed or fear. Remember the market is not going anywhere you do not have to enter until you are confident and ready. Live to trade another day!
I would be happy to discuss strategies with you sometime.
Paul
Forex is a very volitle arena that is not fit for amateurs. Any news releases are almost instantaneously assimilated into prices so the chance of you profiting on something that you saw on cnn is pretty low because large institutions and hedge funds have analysts all over the world that track trends and events and have probably already acted on news before the media even gets ahold of it.
Also, there is a thing called a spread that will prevent you from easy profits, meaning that a currency dealer will always win.