Chapter 7 – Basic Trading Methods

PRE-NEWS TRADING

  • We enter the market 5 minutes before the news release.
  • We base our entry on market sentiment and technical trend of the currency pair.
  • We ALWAYS enter in the direction of the current trend. If the news release goes our way, we can take advantage of the entire move. If the news release goes against us, we might have to endure the initial drawdown, but usually after the news impact is over, the market will resume its technical trend and give us a chance with a small profit or break even. We might have to wait anywhere from 2 to 12 hours.
  • We only trade news releases that won’t change market trend. Important enough to move the market, but unable to change long-term market sentiment. For instance, we will not pre-news trade Non-Farm Payroll, CPI, GDP, and Central Bank speeches, but we can trade Retail Sales, Trade Balances, PMI reports, etc… Especially reports that will not have a profound impact on the trend.
  • This is highly advanced. Remember to trade in the direction of the trend, and don’t try to guess what the release number is going to be. Trend will always trump news releases in the long term. Experiment first with demo accounts to get an idea how this method works.

Weekly Outlook

I provide a weekly outlook where I analyze the fundamental trends. I strongly suggest that you to sign up for a free membership and read my outlook to get a broader view of the market. I think you will also understand better some of the concepts that I talk about in this book once you see them being applied in real-life.

 

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About Kelvin Ching

I'm a professional Forex trader and I have been trading for over 7 years. I was a series 3 broker and a registered CTA with the NFA, the main regulatory agency in the United States, and I have been involved at the highest levels in commodity trading. I also have a background in Information Technology, graphics design, and programming... I'm the co-founder of CurrencyNewsTrading.com, a site dedicated to fundamental analysis and news trading.

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