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:

  • We enter the market 5 minutes before the news release.
  • We base our entry on market sentiment and fundamental trend of the currency pair.
  • We will always trade the direction of the Technical Trend.
  • 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:

  • We wait for the news release to come out. Based on the release number we enter the market immediately either with a Long or a Short position.
  • We try to catch the initial spike move, or part of the move.
  • We will put our Stop/Loss 15 pips from the pre-release price and our Take/Profit at the maximum expected range based on the report and its historical data.
  • 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:

  • We wait for the news release to come out. Based on the release number we will determine “where” to get into the market.
  • Usually we will wait for the market to come back within 10 to 15 pips of the pre-release. Depending on the actual deviation.
  • We will put our Stop/Loss 15 pips from the entry price.
  • We will take profit at least 25% of the position when we get 10~20 pips of profit, and at least 50% of the position when we retest the top or the spike.
  • 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.

    John Morrison