Trading the News

With an important day ahead in respect of market news we are expecting an extermely volatile day. Here are a few fundamentals to be aware of when trading on a day like today;

1. Do not make 50/50 bets prior to releases, if you are in profit be sure to lock in profit and re-enter after news releases. After all betting on these releases is 'GAMBLING'
2. If trading F/X focus on strong currency pairs which tend to be less volatile and more liquid. These pairs tend to hold solid direction and can be easier to trade especially on days like today.
3. If you are not in the zone and remain un-sure about expectations and probability of outcomes, remain on the sidelines. The markets usually return to normal volume and volatility after these releases which tend to be easier to trade. It is also very important to have all resistance and support levels mapped out on the graphs you are trading helps the trader find high probability entry/exit levels.
4. Do not trade if you are un-sure. There is always an opportunity to trade you do not have to always be in the market. If you want to be in the market always look at the option of reducing stake size reducing that 'FEAR' feeling.
5. Avoid getting carried away on the releases and be aware that there are many variables that can be priced in to the market already, so if numbers beat expectations do not always be expecting drastic increase in price levels.

In conclusion it is a dangerous time to trade, but attempt to maintain a level of control over your trading, and ride the wave.

Happy Trading