Misappropriation Still Lives
The news trading market is fascinating to many investors. As a result most traders would rather stay out of trading during the period of the news release , such as that of the NFP Report in addition to those of the FOMC Meeting Minutes. However, there are traders who have embraced the career to trade news. However, news trading comes with immediate satisfaction. Within seconds, if you can anticipate the direction of the market precisely, you can earn a few hundred pips. Take a look at most of the day traders who can make this many pips in the space of weeks. News about trading is for traders who want a lot of action in a brief duration. News trading strategies are based on the fact that prior to any scheduled news release, markets develop a certain expectation about the economic data that will be released. When the actual economic data are announced, if there's a significant difference between expected and the actual, there will be an unintended reaction within the market. If you're an investor who would like to trade in the news despite the fact that many traders do not want to trade it. What are the best way to do it? There are three main options to trade news. The first strategy for trading news involves betting on market direction and then entering the market prior to the time the news is announced. The second news trading strategy entails waiting for the news to be released before entering the market. The third news trading strategy involves a combination of both the two strategies above. Let's examine how to use the news trading method in detail. Suppose, you are a pro active trader. You've been monitoring the market before the NFP Report publication and would like to be able to make an educated guess on the market direction during the news announcement. This means that you are entering the market 20 minutes before the news release date. One advantage of doing this is that you avoid expansion of spreads that normally occurs prior to the release. Visit:- https://delawaredigitalnews.com/ You made an entry well before the release date in the days when spreads were narrow. Now you place your bet on the direction of the market, going long or short. You should place a stop 30 pip below the entry point if you are trading long and 30 pips above the entry in case you are on an option to trade short. You must wait for the announcement to be made. Now, it depends on the accuracy with which you predicted the direction of the market. If your prediction was good and the market moved in the exact direction as you had anticipated, you will close half of your position when the market moves in the direction you taken on. In this case , 30 pip! For the remaining half you should set an open stop trailing the 20-day Simple Moving Average, so as to take advantage of the trend to the maximum extent possible. In case, the market moves in the opposite direction, your stopping loss is taken and you are out of the market for a loss of 30 pips! You will be using the chart of 5 minutes for this strategy for news trading. You might be wondering why you should exit half of the trade when the market moved in your favor. This was done in order to minimize the risk of losing money and to take it whenever possible in order to avoid any whipsaw that might develop within the market. The most crucial aspect of this news trading strategy is to anticipate the direction of the market at time of the news release in a precise manner.

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