Summary: Trading the News



In trading the news, you can take one or the other,  a directional bias or a non-directional bias.

Two Ways To Trade The News

a) Directional bias 

b) Non-directional bias

From a previous post, we have discussed about  “Trading The News” Now you have an idea how to trade the news!  Remember to keep these things in mind when trading:

When you have a directional bias, you are expecting prices to move a specific direction, and you’ve got your orders in already.

*  It is at all times good to understand the principal reasons why the market moves in a specific direction when news is released.

When you have a non-directional bias, you don’t care which direction the price goes. You just want to get started.

Arrangements for the non-directional bias are also called straddle trades.

However,  It can’t really be that easy, but practice makes perfect!

You have to trade many different reports and practice before you get a feel of which news reports will make the market move, how much of a surprise is needed for the market to move, and which reports to avoid trading.

Your achievement depends on your preparation, just like in any other trading methods.

This will take some time and more practice. Study and  learn the economic indicators to understand why they are significant.

Keep in mind, nothing worth having comes easy, so stick with it and you will find that trading the news will be very worthwhile once you get the hang of it and learned how it goes.


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