So, as I wrote on my previous post, I had to give up News Trading.
During the time I had been doing News Trading, I had been using a specific service. I think there are mainly three news trading service providers, but please know that they mostly don't tell you the difficult side of dealing with news.
If you do news trading, you have to deal with bad slippage, widened spreads, requotes, bad conflicts, ignorance, and rude comments from brokers, etc. The most important thing is brokers don't like news traders. They do anything to block news traders. Even with such down-side, you have to pay somehow expensive fees to such news trading service providers.
As some of you might already know, those FX trading service providers earn their money, not by trading for themselves, but selling products or services to as many people as they can find, and doing so is much more profitable than trading on their own.
Another down side is, news trading is not mentally healthy. My hands were always shaking and I was sweating all the time during news as I was so much scared to lose my money instantaneously. If you were not too much leveraged, and used an EA that could automatically place a stop loss for you, then you should be fine. But at that time, I was really overly-leveraged as I was really intoxicated.
Showing posts with label News Trading. Show all posts
Showing posts with label News Trading. Show all posts
1.11.2011
News Trading
Back in five or so years ago, I quit importing and selling surfboards and started using all my fund earned from surfboard business for trading forex, especially for News Trading or Spike Trading.
New Trading during those days was very lucrative. I had been doubling my money every month. I was using a special software called Auto-click. Auto-click gets certain figures sent from major news providers and automatically clicks buy or sell button of a trading platform. The speed of the click was lightening fast, and I could get into the market than most of human traders.
So, for example, right before one of the major news releases, such as Non-farm Payroll, UK Retail Sales, or CAD Employment Rate, was released, I used to sit in front of my PC, do certain configuration, and wait for the news release numbers are released. After some seconds, there would be a huge spike like 50 to 100 pips in a matter of seconds, mostly within a minute. When I successfully closed my position at the peak of the spike, I could easily earn a big profit in about one to five minutes or so because I was really high leveraged.
Sitting in front of my PC for about five to fifteen minutes, trading news events twice or thrice a week, was enough for me to double my money every month. For me, it was like a Holy Grail.
I thought I would be buying another house around the coast line in a couple of years. But, unfortunately, after several months, brokers started behave weirdly. Some didn't fill at all. Some slipped like crazy letting me in the trade right at the peak of the spike and it caused me a significant loss due to very fast pull-back of the spike. Some insisted that I had been doing manipulation or something, which all you know impossible to do. Some banned my account completely.
Finally, almost all brokers obviously or silently kicked me out. I tried many brokers, but only after one or two attempts, brokers noticed me and stopped me trading with them. The golden era of news trading was over.
New Trading during those days was very lucrative. I had been doubling my money every month. I was using a special software called Auto-click. Auto-click gets certain figures sent from major news providers and automatically clicks buy or sell button of a trading platform. The speed of the click was lightening fast, and I could get into the market than most of human traders.
So, for example, right before one of the major news releases, such as Non-farm Payroll, UK Retail Sales, or CAD Employment Rate, was released, I used to sit in front of my PC, do certain configuration, and wait for the news release numbers are released. After some seconds, there would be a huge spike like 50 to 100 pips in a matter of seconds, mostly within a minute. When I successfully closed my position at the peak of the spike, I could easily earn a big profit in about one to five minutes or so because I was really high leveraged.
Sitting in front of my PC for about five to fifteen minutes, trading news events twice or thrice a week, was enough for me to double my money every month. For me, it was like a Holy Grail.
I thought I would be buying another house around the coast line in a couple of years. But, unfortunately, after several months, brokers started behave weirdly. Some didn't fill at all. Some slipped like crazy letting me in the trade right at the peak of the spike and it caused me a significant loss due to very fast pull-back of the spike. Some insisted that I had been doing manipulation or something, which all you know impossible to do. Some banned my account completely.
Finally, almost all brokers obviously or silently kicked me out. I tried many brokers, but only after one or two attempts, brokers noticed me and stopped me trading with them. The golden era of news trading was over.
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