Trading the News in Context

You can have a directional bias or a non-directional bias while trading the news.

Here are a few more factors to consider while trading news:

• When you have a directional bias, you expect the price to go in a specific direction and have already placed your orders

• When news is issued, it is always beneficial to grasp the underlying reasons why the market swings in a certain direction.

• You don't care which way pricing moves when you have a non-directional bias. All you want is to be activated.

• Straddle trades are another term for non-directional bias setups.

That's all there is to it...

Is it truly that simple？

NO WAY!!!

You'll need to practice and trade a variety of reports before you get the hang of:

· Which news stories will cause the stock market to move？

· How much of a shock is required for the market to react？

· Which reports should be avoided when trading？

Your success, like any other trading approach, is determined on your preparation.

It will take time and effort to master this skill. Study the economic indicators and do your homework to understand why they are significant.

Remember that nothing worthwhile comes easily, so persist with it and you'll discover that trading the news is quite rewarding once you've mastered it!