QUOTE(pergilahsayang @ Mar 20 2015, 07:57 AM)
Hello traders. I want to ask for opinion. About trading on news.
More often, i see after big news especially eurusd, like nfp and fomc, the market will be very volatile.
But usually and generally, it will move in one big direction, either up or down after the news. Problem is, we seldom can accurately forcast where it will be heading after the figure came out. Up or down? We see many traders lost thier money because they open position hoping to profit in one direction After the news.
To overcome this, could we open buy and sell position before the news, and when we hv confirmed where is the msrket is heading, we close the position tht is against us and let the other one ride the trend?
Example, open buy and sell at the same rate, same allocation and same leverage, when we see sudden jump upwards like 20 - 30 pips after the news, we close the sell position at lost and let the buy ppsition ride the trend.
Theoritically seems plausible. any1 done it before? Or izzit also a recipe for disaster?
Yes, until i realized I was more profitable in a slow and steady way
without the news, news gives us thrill, gives us pips but in a long
run you are just gambling with the acc, not really advisable,
spreads and volatility just eats off your profits