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TakeProfitTrader
Oct 20, 2020 1:47 PM

How To Trade Around News Education

Micro E-mini S&P 500 Index Futures (Dec 2020)CME

Description

One of the common mistakes I see is traders chasing the market around news.

Trading news is a game that we simply cannot play as humans. That game should be left to the algo's who have much deeper pockets and better tech.

This doesn't mean you can't find high probability trades around news, but they may not be what you think they are.

Let us know what you think or what your strategy is around news events.
Comments
Trading_Rat
I agree with one commenter's 3-day wait rule.
dufik
Good stuff
johnmcal3
I think that generally speaking that’s a wise guideline, yet similar to all other areas of life, I think that there are times when not factoring as much into your decision, even allowing it to get in the driver’s seat and take the wheel, on very rare but legitimate occasions, would amount to negligence. For instance, one factor that I haven’t heard mentioned among all the talk about the bulls not having the resources to maintain without a pullback to previous supports, is that recently corporations new to BTC have invested substantial sums of money, even just the ones that we know of, and who’s to say they are not wanting to protect their interests, or perhaps even make a good impression upon their skeptical peers. It would behoove them to become rather bullish, and do their part to further the value of BTC. This is an indirect example, but easily derived from not taking into account the news. So though I appreciate and even agree with your sentiment, I think that there are necessary caveats that need to exist as qualifications, otherwise it just becomes like any other blanket piece of wisdom, useless.
yonsfx
i agree bro good stuff my man , and with me being a supply and demand trader im trading the macroeconmic points where markets would reverse from , so i totally agree and technical wise if your trading supply and demand right you can see where the market may make its move prior to waiting for the medium/high impact news drop , Amazing and simple post bro ill follow you to keep in touch good luck !!! :)
TakeProfitTrader
@yonsfx, awesome man, thanks the comment. Context is always king and love the supply and demand talk.
yonsfx
@TradeContext, keep in touch bro i post daily setups i followed you already but all love
GeminiTrades
Exactly, Unless it is a long term change in context just let the news happen and take the counter trade once the momentum declines. So, I regularly trade the news I just don't chase the market. I trade NFP every month just like that.
TakeProfitTrader
@GeminiTrades, exactly. Can’t trade any two situations exactly alike. The context is always going to be slightly different.
scheplick
Totally agree. Avoid the news at all costs. There was a day when it was actually possible, maybe 10 or 15 years ago. But today, for a retail trader, there is no edge. It is only temptation to chase and make bad decisions. Someone once told me about the 3-day rule. Wait three days after a news piece to see just how long-lasting or real it is. Generally you will find by the third day the news has resolved and retraced or gone sideways.
GudUtenTruser
@scheplick, This. However, the news can be very helpful to determine what the future long term direction might be.
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