If you have been involved with forex for any length of time, someone will tell you that you need to find a style of trading that suits your personality and stick to it. I have tried technical trading, automated trading and news trading. News trading is the only style of trading that I have consistently made money doing, and I have been doing it for six years. Up until the spring of 2007, news trading was a license to print money. Shortly thereafter, brokers everywhere started to put an end to it by requoting, freezing platforms, widening spreads up to 40 pips, and outright banning news traders. If you haunt the forex forums, you can see for yourself how almost everyone who used to trade news, has given up and moved on to other styles of trading.
When I first started trading news I had to switch brokers 3 times before I found one that would give me fills at news time. When I found a broker that would execute during news, I worked it for several months starting with a $500 account until I built it to over $18,000. All of a sudden, I stopped getting filled and realized I had been flagged. I moved to a very popular brokerage where, according to the forums, everyone was getting filled. I got filled once, and then nothing but requotes for 3 months. It was at this point that all the forum gurus declared news trading dead.
I have to admit, I took some time off myself, but I missed news trading. I decided I should resume my hopping from broker to broker like I did in the beginning. I am now on broker number 12, but changing brokers has paid off. I now get execution very regularly at news time. It is still a cat and mouse game with the broker, and the rules have changed, but we are learning to work within their rules and employ a little technology of our own to resume profitably trading the news.
Trading the news requires us to constantly adapt to what the broker throws at us. I review our journals and history, make note of the time stamps on each order and tweak the approach to our next trade, based on what I learn. My blog will describe my current set up for any given trade. Posts after that will address my trading plan for an upcoming release or the results of a trade we just completed. I look forward to increasing your profits through trading the news.