Trading Discussion Trading against the news

[Victorial]

Trading is a lucrative way of making money online and it is also one of the fastest ways to lose your money. Traders do use two methods to take and hold a position while trading forex (foreign currency pairs). The first method is the news forecast (fundamental analysis) that comes in every day while some analysis may be weekly as they will tell traders what to expect for a particular currency throughout the week.

The analysis can be very useful since you will have a head start and know when how the market structure of a currency will be. For example, it was analyzed some weeks ago that GOLD, a metal will fall in the market price and it did fall massively. The metal and most preferred method of savings other than crypto is trading below 1800 after witnessing a surge a few months ago. Trading against the news could be detrimental.

While the second one is self-dependent which involves the use of indicators that are available to trade forex in determining the entry and exit point. However, when a trader combines both methods of trading, it has a higher chance of yielding results.

Have you ever traded against the news and how did it turn out?

 

[Nite]

A lot of short term traders decisions are based solely on technical analysis rather than fundamental analysis. It's quite common for them to completely ignore the fundamental factors. They don't realise that fundamental analysis is as important as the technical analysis. News releases such as inflation, interest rates changes, earnings reports can have significant impact on the market. Therefore, news forcast can prove vastly beneficial to traders and can strengthen their trading strategy.

 

[btaliat]

I don't think it is even a wise decision for traders to be trading against the news.

 

[Kingstone]

I don't think that will be advisable. Trading against the news will be detrimental as some of these factors actually play a bigger role in knowing which direction to go especially when to enter the market. I have once traded against Gold fundamental analysis and it almost got my account blown. It was predicted that Gold will reach 1800 once it crossed the support line.

Using technical analysis is also good as it will tell you when to exit especially if you are a scalper. But if you trade only the indicators and they predicted the opposite of the analysis, there is a higher chance that it will go wrong.

 

[Ivo Zetticci]

News trading is an interesting and quick profit-generating but sometimes news goes against the market flow. Strong analysis is needed to understand how the news will affect the market. FXOpulence tries to help traders earn some profit by offering signals at times.