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#1 June 9, 2009 04:11:00

DNLTrading
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Bloomberg terminal +

Ok so I am looking at different news services and interms of what I plan to do I will be using Trade the News in the short term. I was just wondering if anyone here has Bloomberg or an equivalent news terminal and what there opinions are on the service?
Can I compete just by having bloomberg on tv in background?
Thanks!

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#2 June 9, 2009 04:25:00

Elkart
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DNL

I don't think news is much help in forex. It's largely irrelevant I think.

By the time its on any news source, the move's come and gone and you either got nuked or not.

It might help to explain big bars after the fact, but mostly its pretty pointless to even try and act on it, news events will just confirm trends anyway.


Show me your Pips!

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#3 June 9, 2009 05:19:00

kramer
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In addition to GrimFD's post: We had some people doing statistics on news trading and the main outcome was "there are no reliable patterns emerging".
In other words, the market takes advantage of the high volatility during news events in such ways that there is ultimately no clear predictable pip move that can be extracted from "expected" numbers. There are even institutions investing millions of dollars in developing software that analyses statements as they come out of the publisher's mouth in real time ... but has anybody seen (or even heard) any success stories about that?

None of the experienced traders I know (NOT the ones who declare themselves experienced, but lack even the basics of an experienced trader) is actively trading during news. Most of them either stand aside or have limit orders placed long before the event itself is happening.


With the right approach, you will find order and patterns in chaos ...

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#4 June 9, 2009 05:58:00

SvenFoster
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I think individual news items are of little use.

News flow and a stream of news that is confirming or contra to the prevailing sentement is useful.

then again, what do i know.


What if the Hokey cokey is what its all about?

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#5 June 9, 2009 06:19:00

Elkart
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Well, this eastern europe banking thing that's busy unfolding might be of use, but its just a background noise really, cause you'd still have to guess what the markets going to do in response.

All it can tell me is there's volatility on the way sometime in the future.


Show me your Pips!

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#6 June 9, 2009 06:30:00

Elkart
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But I got a heads up on that crisis of the web some time ago, only now that its being talked about on Bloomberg, literally a month or so after I heard the first alarm bells.


Show me your Pips!

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#7 June 9, 2009 07:20:00

GreatPlains
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Latin Monetary Union v2.0 [Big Grin]


"The prudent capitalist will never adventure his capital if there exists a state of uncertainty as to whether the Government will repeal tomorrow what it has enacted today.” -- William Harrison, 9th President of the United States of America

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#8 June 9, 2009 07:41:00

Elkart
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FHG,

Can do big things to the euro that. Send the dollar back to 1.30, 1.20 or 1.10....


Show me your Pips!

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#9 June 9, 2009 09:40:00

Chikot
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I actually noticed that it is 99% of time when i have some target set where i am supposed to go long or short, right before news price is already there and since I do not trade news or at least 30 minutes before news, I see a lot of potentially good trades go. Must be some conspiracy ;-)

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#10 June 14, 2009 06:35:00

nickelplayer
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Bloomberg terminal +

Trading on news release info is committing financial suicide, the only respite being that its a quick,although painful death.Much more rewarding is trading the sequential bar pattern that is formed after the news release in the first 5-6 bars. The time frame you use depends on the volatility involved. I've used 5 min. charts in highly volatile situations and longer time frames in less volatile reactions,it depends.The main caveat however is to give the market sufficent time to absorb the sense of the news issued and determine the adjusted value of the pair involved, if any adjustments are in fact warranted. You know its time to trade technically again when the price action is acting technically reactive rather than fundamentally reactive.

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