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Trade
News trading
A whole separate direction in trade was due to the release of important news that could greatly affect the market. A calendar of events, where the schedule of important market news, answers an important question trader, who wants to know exactly when we can expect a sharp price movement. We may not know the direction of movement until the important data, but at least we know the moment when the market could make a significant breakthrough.
News trading has problematic aspects. The point is that the minute we decide to buy a certain amount of currency, those wishing may not be enough.
DC vs news trading
There is nobody not a secret that most DTS have a very negative attitude to trade their clients on the news. The causes can be divided into two categories, the number of devices activities of the companies themselves:
1. If the company really brings to the market the trader application, it is technically not so easy at the market price, which in a second changed several times, to pick up a counter-claim. Because all market participants can see where to market after release of important data, and then those speculators who will open trades against price movements will be less.
2. If DTS does not display anywhere the application of his client, that is, not performing brokerage functions, namely dealing, then there is every reason to believe that quite profitable if its customers when announcing important events, almost obvious market movement to earn money. The kind of success the trader will only mean financial losses of the client.
To improve the situation, it is necessary to begin to carry out operations only pending orders. Numerous quotes which can be observed on the market during the announcement of news will make you forget about the speculator precision of execution of trading orders. Price glides faster, and people can't even open a position.
Thrusting a pending order, you can decide a significant issue. Can be installed before news release in both directions from the current price. When the price will jerk to one side and activates the pending order, the second, directed in the opposite direction, can be removed.
Another way is to use to close orders. After all, when you try to lock in profits, you may encounter an unpleasant situation, and it appears excellent. You can use trailing stop that will move with the price as it moves towards profit for our trades. Thus, when the price will be brought down the order and the position is closed. Trailing in this case it is better to use not virtual, but full-fledged, that is, to move it order.
Trading the news with turns
Quite often there are situations when news trading a trader starts with a bad trade entry. The price immediately after the announcement of the event moves, for example, up, thereby concluding a deal to buy, and then abruptly turns in the opposite side, passing through the point of position opening and is directed downward.
Such a maneuver on the exchanges is often called the hunt for the footsteps, and understandably so.
It looks like the market like a lead up buy traders knocking thereby Stop Loss of the positions of other traders, which opened for sale. Thereafter, the purchases will successfully get closed, and another part of it moves in an unprofitable region, looking for new Stop Loss.
Unfortunately, to predict in advance such a development is not possible. Some speculators make a coup of a deal if it turns out that their first attempt failed. It can look as follows:
• after the deal is closed at the Stop Loss immediately open an opposite position of the same amount as the first transaction
•is this same revolution as in the first embodiment, but increased volume, so that in case of success return the lost money and get profit
• any of the procedures can be repeated several times, if did not manage to close the deal with a profit
Of course, it would be a shame if the market and second, trait, and time will unfold before our Stop Loss, but, nevertheless, the upheaval at work during news release sometimes used.
The determination of the importance of news
News can be different from the perspective of their impact on the market. For example, the EU summit can be considered a significant event. There is even a special parting of the scale, you can find them on the Internet that with some error characterizing the importance of each meeting, report the news. Even without extensive work experience on Forex, you can easily form a proper opinion about the importance of an event.
As a rule, known in advance important for financial markets, announcements, and so on. The time of their release would not be a surprise to the bidders. Spontaneous release of information, adds market "fire", of course, can also be in the trade, for example, conducting one of the countries of intervention. However, events of this kind are quite rare phenomena.
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| Category: Forex | Added by: (30.10.2017)
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| Views: 227
| Rating: 0.0/0 |
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