Learn to Day Trade - Get Free Mini Course

Day Trading into News – IS THAT REALLY A GOOD IDEA?


Prefer to read it?

Full Transcription

So you want to trade into news now, is that a good idea? Well, stick around, because you’re about to find out the real truth behind trading news. Im Marina ‘The Trader Chick’. And you are watching another great episode of Confessions of a Trader Chick. 

News based day trading

So what’s news? We hear the rumor, you know, well, the saying, I guess you could hear it says buy on the rumor, sell on the news. Right. So right there, we know just from that one thing that we are already getting the news way too late.

And that’s cool, right? Because if we’re smart, we wouldn’t even be buying on the rumor in the first place. And we don’t we will be selling on the news because what we do is educated and calculated moves rather than just my grandma said it’s a good idea. Or, you know, Cramer on Mad Money said it was a good idea as well, because, again, that’s already news. Right? So by the time he’s saying anything to us, it’s pretty much a sell or buy.

But we don’t really know. Right, because we need to make educated rules. So here’s the thing. News can really mess with the market, messy, it gets super messy, and if you are a day trader, you really do not want to be part of the news. And one of the main reasons why I stay out of stocks on especially on an intraday or even a swing trader type of a thing, I’m definitely in stocks, but for the long term is because of the news, right.

Day trader stock news

If Jeff Bezos is getting a divorce. Amazon is still a frickin awesome company, but yet the stock market price is tanking. Why news? It’s drama. It doesn’t matter if he’s getting a divorce. It has nothing to do with Amazon. When another thing happened, I don’t remember. I think it was with Goldi. I don’t remember. It was one of them. One of the CEOs has some sort of an affair. The market tanked. It was the dumbest thing.

It tanked and you know what? That has nothing to do with the actual company at all. And three months later, the market is back up. But if you’re a day trader, you don’t know the news, you’re going to get screwed. 

Forex day trading news

How about with Forex? What if Trump or any one of our presidents decides to have an issue with one of the other presidents of one of the countries that you are having a pair with? Right. Like a forex foreign exchange currency pair, whatever?

I don’t know. This isn’t true, but let’s pretend. So there’s you’re working with the US and the yen, and while you were sleeping, and you got your money and or you could be in it right there waiting for you to find out if your pair is going to be strong or whatever you’re working on now and Trump and the president of Japan or prime minister, I don’t know what they’re called, is having an issue. All of a sudden, the currency just goes beyond erratic.

Those are news. Those are news that we don’t have any control. Right. So the point of news is kind of to stay away from it because everybody’s an expert and we really don’t know what’s true or what’s not. That’s why technical analysis is always going to be your trump card. Basically, it’s always going to win. 

Recommended Read: Technical Analysis for Trading Futures

However, when you are an intraday trader, there is a site called ForexFactory.com. The link is below. So you guys could look at it and everyday they post what are the news for the day? What are the high alert news like the red coated news? It could be either, you know, some sort of a report like the housing report, the unemployment report, or if it’s an FOMC day when they’re having meetings or minutes or whatever, usually affects the market. We are prepared for this. We know that, for instance, in the morning at nine forty five, there is a news report coming out, a report about, say, housing or let’s say crude or whatever.

Day Trading into News

That is a high alert, high importance news. Object news, I guess I, I don’t know. We stay out of the market. We’re just smart. We just don’t do markets when there is an actual news happening. And that usually happens again with forexfactory.com. You could easily find all of that right away and you don’t have to worry about it. So once the news has passed and the market has teetered off and it’s not indecisive as it usually is when news happens and trust me, I not even tell you the amount of traders that say, oh, but, you know, the market is so strong going down, the news isn’t going to affect it.

I’m staying in and all of a sudden the news comes and it BOOOOMS or whatever, you get immediately stopped out because you’re also somewhat smart by having a risk in place. Right. But sometimes it can bluster your risk and you’ll be out way more. Why chance it by chance that. Right. Remember, I have a great video on FOMO, fear of missing a trade. Remember, there’s always another trade coming and you really don’t want to be in a trade or getting into a trade when news is about to come out.

Recommended Read: Trading Financial News

So stay out of news. If you’re an intraday trader, you know, when they’re happening, stay out. And if you do get into news and you want to buy on the rumor and you want to sell on the news, I’m sorry, it ain’t going to happen. You are not going to be a good trader that way because you don’t know when the actual rumor is happening and you don’t know when the actual news is happening, because we as individual traders, retail traders, we don’t have that control.

We do not have that power. We do not know what’s going on. And it’s simply not worth the stress for us to try and figure it out or try to pretend that we know what’s going on. So the best thing to do is simply no way to stay out when the news is happening and listen to the market when it has been in regular momentum mode because it’s hard enough to trade. Do you really want to put an extra element of a challenge on there?

So I’m Marina, ‘The Trader Chick’. I also have a FREE mini course simplifyingdaytrading.com. I talk a lot more about this so that you guys are doing the right thing. Day trading does not have to be hard. It can be simple, but you got to follow the rules. You got to understand what’s going on. Don’t follow the rules because rule breakers are really the ones that do the best. But you do have to have a system.

You do have to know what you’re doing. You cannot just erotically get in because there’s a rumor or that somebody said this or this, somebody said that or you say, well, the market is heading in this direction and news comes out and it blows you out and you’re just like, oh, I can’t believe it. But you knew the news was coming out, so why risk it? Why? All right. I’m Marina, The Trainer Chick.

Subscribe to my channel. I’ve got a lot more goodies for you so you could know exactly what needs to be done and you could have fun doing it. Simplify your trading.