Eurusdtrader.com and news trading

Jimmy, the founder of eurusdtrader.com

My first news trading was in 2003 when U.S. Army began to invade Iraq. I remember that was a Friday and the Army would face an intensive resistance of Iraqi National Guards and a first time real battle in the weekend. The outcome can hardly be expected. But I suddenly had an opinion that whether U.S. Army or Irais took a big defeat, the fx rate of U.S. Dollar would change largely (in short-term). Because none of the market participants, whoever were small or big ones, was able to predict who would be the winner just like me, they would rush into the market to respond to the outcome of the battle on the next Monday, Australian local time. So I bought EUR/USD with a tight stop loss order and a rather distant take profit order, and bought USD/JPY with the same two types of order as well in the last minute of Friday's market open time. EUR/USD and USD/JPY have negative correlation to some extent. As such, I would make a profit no matter what direction U.S. Dollar would like to take on the next Monday. I really made profit finally. I ever posted the idea for this case in a Chinese fx traders' forum and received appreciation from other members. I thought some of other members did also already find this trick independently. For myself, my background is in Science instead of Economics or Finance. Since I only had less than 1/2 year fx trading experience then, although I heard of some indicators like GDP, CPI, PPI, PMI, ISM, NFP, etc., I didn't know the importance of those indicators to fx market. I didn't know some of them can also throw a bomb into the market as an clear outcome of an expected counterbalanced battle.

Occasionally, I found eurusdtrader.com in MoneyTec forum. The founder of the site, Jimmy, whose major was in finance, had 20-year trading experience in banks. Jimmy introduced this trick -- to straddle spot price with one entry buy and the other entry sell right before economic indicator release or treasury/central bank official's speech or Fed/ECB/MPC rate decision and minutes. The most important contribution of Jimmy was he did a thorough statistic work on spot fx rate behaviors after a group of economic indicators release. This group included a lot of current economic indicators of different countries like U.S., U.K., Eurozone, Canada, etc.. His research quantified different intensities of spot fx rate move of different economic indicators release and classified those indicators into tradable ones and intradable ones. I don't want to repeat in this post what Jimmy showed to the public in his website. Everyone who is interested in Jimmy's work please visit Jimmy's site by yourself. Jimmy ever held an online course how to do news trading and advised individual traders to trade news real time by an IM-like software.

Because online retail fx dealers lose much money when they used guaranteed stop order as an advertisement attracting investors from equity market to join in fx online trading, besides NFP number which was ever the key factor influencing market expectations on Fed's rate decision, always came out far from what market had expected in 2004, they finally all abandoned stop order guarantee. This policy change almost killed this type of news trading (or Jimmy called it pseudo news trading -- simply to straddle spot fx rate) immediately.

Pseudo news trading and easy money are all gone now. One must really understand the fundamental factors and at the same time possess an timely and accurate feeling on the market current sentiment to do real news trading. Please read page 18~24 in Oct's issue of Currency Trader Magazine to learn relevant knowledge -- a very nice article by Barbara Rockefeller. It seems Jimmy also change his services accordingly. He gets CTA certificate and expands his managed account program. He also begin a new traing program which I see from the topics of lectures with more fundamental contents than before. Anyway, that is reflecting the reality.