Hehe. I sometimes feel like a lone wolf baying at the moon in this direction, when everybody else is baying at one directly over my shoulder.nanningbob wrote:Why I hate fundamentals and take mostly indicator trades. Cad has been going down, been expecting a retrace. Last night building permits, which means future jobs and growth, were up 10%. That was way higher than expected. In fact those numbers were astounding, the type of numbers news traders like to catch a couple hundred pips on. Cad should take a nice jump. Yeah right zzzzzzzzzzzzzzzzzz or continued to go down. I did news trading my first 2 months of trading and it made no sense whatsoever. Once in a while I will take a jump in there when I think a story should move the market. Lets see gbp/cad went up to almost S3, jpy/cad went down to S2. OK so much for that. NEXT. Maybe these guys will get tired of my complaining.rosst wrote:
What I learned - stick to 10.4/5 rules and avoid CT trades!
Apart from the occasional hiccup, news events are non-events these days. Even NFP. Remember when the term 'NFP' sent shivers down our spines? I don't. It was a loooong time ago.I mean, I remember the sensation, just don't remember when it inspired fear. These days, all it does is send the markets to sleep in the lead up to its release. Does sod-all afterwards. Well, a bit of a spike perhaps, but not like those 400 pips in 30 seconds we used to see.
I do not even bother consulting FF's upcoming news page these days - and that is not merely because it is crap. It is because news events are mostly non events these days, and have been for a looooooonnnnnggggg time.
"NEVER trade two hours before a major news release, of 30 minutes after" scream the pundits. Why not? Nobody cares any more. Apart from the pundits and those daft enough to take any notice of them, that is?
So, do I trade in the run up to NFP, or releases of similar 'importance'? Don't be so bloody silly; of course not. Why would I trade when I know the markets are moribund because there is no liquidity? Mind, I do not often know that there is an 'important' news release pending, and so frequently do trade into the teeth of it. Doesn't make any difference so far as I can see.
A Central Bank decision to move its own currency is a different matter altogether. If caught on the wrong side of one of those and the only thing we can do is close our trades if we are in time, or see our stops hit if not. Just don't confuse this with a 'news event'; you can forget them.
