The exchange of new intrigues for many traders. As a result, most traders prefer to stay outside the market at the time of the press release as the NFP report or the minutes of the FOMC meeting. But there are traders who have adopted the profession of commercial news. However, the exchange of news implies a sense of instant gratification. In seconds, if you can predict the market direction correctly, you can make a few hundred seeds. Now, compare this with most traders of the day doing these many pips in a few weeks.

Trading News is for traders who love a lot of action in a short period. News bargaining strategies are based on the fact that, before any planned press release, the market evolves some expectations on the economic figures that will be published. When real economic numbers are released if there is a broad deviation between the real and the expected, there will be a knee jerk reaction on the market.

Now, suppose you are a risk taker who wants to exchange news despite the fact that many traders avoid negotiating him. How to do it? There are basically three ways you can exchange news. The first new negotiation strategy involves betting on the market direction and enter the market before the publication of the news. The second information trading strategy involves waiting for the news to hit the market and then enter the market. The third new bargaining strategy involves a combination of the two strategies above. Discuss the first news trading strategy in detail.

Suppose you are a professional active trader. You look at the market before publication of the PNF report and you want to make an educated assumption on the market direction at the time of the press release. So, you enter the market 20 minutes before the press release time. An advantage of doing so is to avoid expanding deviations that usually occurs at the time of the new version. You made an entry long before the press release when the gaps were tight. Now you place your bet on the market direction by going from long or short. Place a 30 pip stop under the entry so long and 30 pips above the entry if you have a short job. Now wait for the press release to take place.

Now it depends on how you predicted the direction of the market. If your prediction was good and the market has moved in the same direction you had predicted, you will close half of the position when the market is evolving by the amount you had risky. In this case 30 pips! For the remaining half, place a leak stop with a 20-day simple moving average to capitalize as much as possible. In case the market has moved into the wrong direction, the loss of arrest will be struck and you are out of the market with a loss of 30 pips!

You will use the 5-minute diagram for this news trading policy. You may wonder why release half of the position when the market has moved in your favor. This has been done to reduce the risks and take benefits as quickly as possible to avoid any whipsaw that could develop on the market. The most important thing about this new bargaining strategy is to predict market management at the time of the press release properly.