Methods of News Trading: 3. Pre-News Trading

July 9, 2012 by Kelvin Ching Leave a Comment

Three Ways to Trade Fundamental News:

3. Pre-News Trading

We enter the market 5 minutes before the news release.

We base our entry on market sentiment and fundamental trend of the currency pair.

We will always trade the direction of the Technical Trend.

If the news release goes our way, we can make the entire move. If the news release goes against us, we might have to endure the initial drawdown, but usually after the impact is over, technical trend will resume its course and give us an exit to break even or 10~15 pips of loss.

This type of news trade is highly advanced, require that you understand the market trend and market sentiment. It is NOT recommend for ALL news events. Only selected few.

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.