There you have it! Now you know how to trade the news! Just keep these things in mind when trading:
- When you have a directional bias, you are expecting price to move a certain direction, and you’ve got your orders in already.
- It is always good to understand the underlying reasons why the market moves in a certain direction when news is released.
- When you have a non-directional bias, you don’t care which way price heads. You just want to get triggered.
- Setups for the non-directional bias are also called straddle trades.
That’s pretty much it…
Is it really that easy???
You’ll have to practice and trade many different reports 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.
Like in any other trading method, your success depends on your preparation.
This will take time and practice. Do your homework and study the economic indicators to understand why they are important.
Remember, nothing worth having comes easy, so stick with it and you’ll find that trading news report will be very rewarding once you get the hang of it!