This becomes a difficult answer for me because for you to fully understand, you must first "understand" fully how the banks move the market.
Understand that the banks ALREADY know what the news will be -- they have massive research depts that follow the daily movement of payrolls, housing sales and anything else that is considered money moving news, so you can actually tell what they are doing by looking at the days previous to the news !
Is the trend moving up nicely ?? You can almost bet your life (yeah, the one with groucho marx) that the banks will finish taking the currency price to the top of the LRC and then DROP THE SUCKER like a hot potatoe, shorting their merry way down to the bottom LRC.
So while i tried to tell you it doesnt matter as long as youre willing to be patient, you desire yet more detail ---- if you see this happening and youre long, find your resistance area for the 30 min or H1 chart and set a tp at that point. NOW WAIT TILL 10AM EST and you will find the banks have reached their top price and are NOW SHORTING THE CURRENCY !
once again, LOOK at the charts and see if this is not what happens !
Im a trader, its what i do --- I cant make money if i dont understand how the market works and its taken a few years because i didnt have me to teach me --- youve got me, so just verify on your charts and youll understand the "realities" of what the banks are doing !
btw, reverse everything if the banks expect good news --- then they will DROP the currency price the week before !
oh yeah, once you verify you will begin to understand youve just gotten one of the greatest secrets of news trading, and it was free, nada -- a belated xmas gift !
it takes a while, but theres no need for philosophy, science or anything else !
forex is based on making money, and the banks do a good job at it !
and i havent even gotten into teaching you how to hedge a news report, which does wonderfully when used correctly !
enjoy and trade well
mp
Quote:
Originally Posted by nvpliers
I've been researching this issue extensively. How does this approach sound? I'll be interested in any thoughts.
When you put on a trade, use multiple lots. It's easy for me, since I'm trading on a mini-account, at 10k lots. If your trade moves in your direction, and an economic announcement that will likely affect the respective pair is minutes away, scale out a part of your position, and then place a logical stop on the balance. The stop would either be placed at break-even, or at some logical support/resistance/Fibo/Pivot line. This way, you book a portion of your profits, and could become even more profitable if the announcement furthers the direction in which you entered. If the market moves against you, you're out, but you still have something to show. Also, by scaling back, you effectively align yourself with position-sizing, with the likely increase in market volatility pending.
One downside, is that if the market becomes extremely volatile, and your stop is kicked out by a spike, with massive brokerage slippage. Anyway, I supsect there is no easy answer, but any thoughts are appreciated.
BTW, thanks mp6140 for your comments. I've looked at past charts and what you say does often occur...retracement to the overall, underlying trend.
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