How Do You Trade the News in Forex Trading?

[Larry1234 10]

I agree that studying the introduction of information and the impact following the intro is a great method to give insight as to how prices will move in the future, it still doesn't solve the problem of implementation. When information hits the market the race is on to trade before price moves to an unprofitable level, and in this day and age you are competing with firms who have access to the fastest execution. Also what if the largest potential buyers or sellers make an incorrect analysis? Their irrational opinion will still be reflected (probably for a very limited time) in prices if they choose the execute on their opinion. If I were to incorporate news into my strategies it would be more of a trend confirmation/denial tool rather than a directional signal.

 

IMO the bottom line is its very difficult (near to impossible) for an individual investor to earn abnormal positive return based on news based trading compared to big institutions because an individual investor do not have sophisticated technology (others factors also) to take the advantage of the same.

[Sophia Scarlett 10]

I used to trade with my own strategies, but also keep my eyes on news... That gives me a strength to make right decisions in forex.. News are preparing us to prevent loss... The broker who I am trading currently, "SAXFx" gives me proper news feeds to save me from loss and rise my profit line...I believe "SAXFx" will never let his clients go down ......

[Larry1234 10]

That's true, if we have the information (news) available with us without any delay, we will definitely able to maximize our gain and minimize our loss.

[ntrader 10]

It is very hard for someone to trade the news against the machines, i prefer to stay without any open positions and just try to catch an extreme oversold or overbought condition.