Beware The Data Source!

[ValueTrader 10]

I feel compelled to post and warn others, particularly newbies, about the information used for trading the news / fundamental trades.

Before I continue, I’d like to point out that data providers in my post will remain nameless.

 

My paid for news feed:

Goldman Sachs EPS $3.79 vs. Exp $3.79

Q4 Earnings $8.46 bln vs. Exp $8.86bln

 

Free ‘Market Update’ Via Twitter

‘Goldman’s’ post $2.4 bln profit!’

 

Based on the information and ‘Spin’ one could have seen a potential long trade following the ‘Tweet’.

 

Clearly it’s always best to stay out on new releases, but even with a 2 or 5min ‘settling time’ you could have given the market (and indeed Goldman’s) quite a few dollars in a very short time.

[tradergoals 10]

Good advice. How much do you pay for the news feed?

[ValueTrader 10]

Good advice. How much do you pay for the news feed?

 

 

 

The price is dependent on which package you go for…Equities, Forex, commodities etc.

 

Don’t misunderstand me though; the purpose of the post wasn’t to sell a live news feed.

 

It was more of a cautionary note about the perils of listening to teenage scribblers on networking sites, and the ‘expert’ opinions and clichés of arm chair analysts on CN-BS or BULLBURG.

 

A live news feed has limited merit for a newcomer in my opinion; it always takes a few minutes for the market to digest the data before direction (if any) is established. As the news hit the trading floor (or the Algo’s server) the market becomes a chop zone.

 

In my early days I remember a guy on the trading floor who’d place stops at either end of his perceived range and wait for the market to hit them at data release time. For while he booked some profits, but he eventually gave it all back, and some more for good measure.

 

Sometimes it’s easy to overlook the real fundamentals, that the market is a dual auction process, if someone’s buying then someone is selling.

 

Some Squawk providers offer a free ‘retail’ version of their live news with a few minutes delay.

 

I’d keep money you’re willing to spend on a live squawk in your trading account for now, as it will be of greater use to you if you have a period of drawdown.

 

Don’t sweat the opportunities you feel may have missed at data release time, we are all ‘The World’s Best Trader’ when it comes to looking back at our charts at missed entry and exits.

 

Good Luck

 

VT

[tradergoals 10]

Hi there, no problem, I've been thinking about some sort of paid news feed for a while now. Metastock looks interesting but a bit pricey, just wondered if you knew of a cheaper start-up alternative

[mohsinqureshii 10]

Beware the Source and Follow Your System!!!

 

 

When you turn on the TV (especially mainstream media) you are inundated with news of the demise of the Dollar. Business news, national news and even your local news channels are leading into events with reports of the dollar and the economy. Analysts are featured and opinions are smattered across the airwaves in an attempt to provide an oracle response to current economic events.

Beware the source and follow your system

In these volatile times it is easy to get caught up in the hype provide by all the news media and analyst. It is natural to want to look for guidance. Remember to trust your system and more important trust yourself.

You, after all, are the single largest determinant of your success.

Your approach should remain consistent, almost impervious to the events occurring because you follow your plan with discipline and ruthless detail to executing at optimum performance.

Be disciplined and follow your plan. If market conditions don't suite your style...... Sit this one out until conditions provide you with your personal edge.

[wessonlake 10]

mohsinqureshii - I agree with the idea of sitting out the news events until they subside. However, is there any type of indicator or service for NinjaTrader that keeps warns you of upcoming news events?

 

I don't really care too much about the news itself, but prefer to avoid the volatility without having to refer to a website with the day's news events.

[ValueTrader 10]

There's two ways to approach your question.

 

1. Even if you choose to avoid the shockwave volatility of data releases, doing 10 minutes research will stand you in good stead for understanding Why the market is doing what its doing. Eg revised figures causing a reversal.

 

 

2. I could code you a basic easy language study, which you'd have to convert to Ninja. I'm thinking along the lines of a time based "warning" or alert linked with a short term ATR style indicator which would give you a green light when volatile drops below a user inputable level.

 

NOTE: you'd need to paper or similar trade it first!