There are literally hundreds of news releases scheduled monthly, but we only trade 40 or so releases based on their track records. It would be an enormous waste of time trying to trade ALL news releases and it would almost certainly result in enormous losses because market reactions to some of these untradable releases are so unpredictable! I recommend demo trade the news for several months before attempting to trade the news live.
Schedule Your Calendar: News releases are scheduled weeks ahead of time, therefore you should be aware of their schedules. Usually the busiest week is the first week of the month packed with Interest Rate Decisions and the famous U.S. Nonfarm Payroll Report. So planning ahead is always recommended.
Read News Analysis: You should make it a routine to read the news analysis at least 15 minutes before the scheduled release and prepare to trade the news. The analysis is usually published 24 hours before the schedules.
Get Ready To Trade! It’s the news release time, you’re filled with adrenaline! Remember, follow the trading method recommended in the analysis and trade ONLY when the deviation is hit. I recommend you stay out of the market unless you know what you are doing.
Rise And Repeat: That’s right, since news releases are scheduled monthly and quarterly, they will repeat month after month, year after year. If you follow the basics, you’ll do just fine.
News Trading Methods:
There are three methods to news trading, The Pre-News, The Spike Trade, and The Retracement Trade.
The Pre-News Trade:
If the news release goes our way, we can make the entire move. If the news release goes against us, we might have to endure the initial draw down, but usually after the impact is over, technical trend will resume its course and give us an exit to break even or 10~15 pips of loss.
This type of news trade is highly advanced and requires that you understand the market trend and market sentiment. It is NOT recommend for ALL news events. Only a selected few.
The News Spike Trade:
This type of trading requires that you react fast enough to the release and use a broker that gives you good fill during news releases.
The Retracement Trade:
This type of trade is safer than trading the spike, but sometimes we might not get a retracement at all or big enough and miss the trade altogether cialis 10 mg.
I will be publishing a News Trading Trigger Sheet and Explanatory video in the next few days to further clarify what news to trade and how to enter each specific news trading method outlined above.