NEWS TRADING GUIDE

TRADING IS OUR PASSION

NEWS TRADING GUIDE

If you are reading this you are probably trying to improve your trading to another (more profitable) level, using tons of indicators, reading books and scripts about technical analysis and probably still searching for the holy grail. Well you are probably expecting that you have just found the grail, but I will have to disappoint you. There is no such thing as a holy grail, there is just knowledge, work and wisdom that can become your holy grail in trading. The more you know, the more you understand, the better trader you will become. If you are trying to improve your trading skills there is something you should not be missing in your trading tool bag, and that little something is called fundamental analysis, which basically is the main driver of the market. Remember just how many times have you been in a position that was going in your direction for days, and then something strange happened in the market. A big ugly spike came out of nowhere and took your profits away in matter of minutes, and you just did not know how this was possible , because everything was fine according to your mighty indicators, technical analysis and etc. Do not get me wrong, technical analysis and indicators work, if you also know how and when fundamental data affects the markets. To make it simple we will try to explain how economic news affects the markets, which news have more impact than other and so on. You will start to understand the logic behind those big ugly spikes that usually were working against you, and make it work for you.

Variety Of News
There are two types of news that affect the markets. The scheduled news and those which come out unexpected and unscheduled.

Scheduled news
Scheduled news we can always anticipate, because they always, well almost always (unfortunately there is no such thing as certainty in these markets) come out at predetermined time schedules. These schedules can be seen @ www.forexfactory.com and www.forexpeacearmy.com , there are also some other pages but these will do.

Important scheduled news releases that move the markets

1. Interest rate decision 2. Gross Domestic Product 3. Unemployment/Employment figures 4. Retail sales 5. Inflation (consumer price or producer price index) 6. Business sentiment surveys 7. Consumer confidence surveys 8. Manufacturing sector surveys

These are the news that normally move the markets. Why normally?
Depends on the situation of the markets, if we are in bear market or bull markets, depends on the current politics of the central banks, market sentiment etc. We will be talking in details about that later. Important thing that you have to know is that market always anticipates something in advance, and that something is always priced in before the actual fact.

How does this look like in the market?

To make it simple let us take the stock named X. Company X is quite new but is making good products and is growing rapidly, but stock X s performance in the stock market is not satisfying. At the beginning of the week, rumors spread across the wires that big company Y is interested in buying this little company. Price of the stock X is starting to grow rapidly. The next day management of the Y company meets with the management of company X and the price skyrockets. But then at the end of the week Y s management announces that there will be no deal because of whatsoever and the stock of X suddenly plunges.

These are the simplified mechanics of how actually news affect the market day by day. Of course there are always some exceptions but in general this is how they work.

Another case on the interest rate decision news, which usually affect markets the most.

We will take the American central bank (FED) which is governed by Ben Bernanke which is a well known dove among the economic circles. (Hawks want a tough stance against inflation, whereas "doves" wants more of it.) To prevent inflation central banks usually raise the basic interest rates, but in our case where there is to anticipate dovish stance regarding the inflation, every slight move towards a hawkish tone in the FED s language would lead towards dolar appreciation. Markets are expecting dovish tone, which means leaving rates at minimum for quite some time. If the unexpected happened and FED would raise rates, we would experience big moves and volatility, because the market would have to adopt to the unexpected. In this case dolar would surge significally.

This is the basically what we want if we are trading the news. We want the unexpected to happen.

Unscheduled news
These are the news that are not expected and scheduled in advance and can come out at any given time. They can come out when the news wire companies get them published. In this category you can put all the new that move the markets; from comments of different respected economistst, central bankers, to news about catastrophies (remember the earhtquake in Japan, it is sad but it is true you can make money on other people misery), wars , the most popular in the recent year or two were comments about Greece goint to bankrupcy or not.

For every comment or rumor about Greece going to bankrupcy market took a bearish stance.Stocks were falling, we were seeing a general risk aversion, which means that higher yielding assets were being sold. On the other hand every positive comment about Greece, higher yielding assets were being bought.

If you want to trade these news you need a good news wires provider where you will hear or read the news, and the most important is to know how the particular comment will affect a particular market instrument. But we recommend that you start trading this kind of news when you understand and are really comfortable with trading scheduled news.

How do we trade scheduled news?

As we explained earlier, when trading news, we want the unexpected to happen. Unexpected data will give us opportunity to make profits, and the volatility on the markets that we desire.

Important numbers
1. Expected (forecast or consensus) numbers: Figure derived from a survey of economists, usually done by news agencies such as Reuters or Bloomberg. This Forecast number, represents what the market expects the release to be.

2. Previous numbers: This is the actual figure for the previous month. Sometimes market looks at the current forecast versus the previous release to gauge improvement. This figure is also important because sometimes we will get a revision, or modification of the past release, which could also surprise the market.

3. Actual numbers: Actual numbers that come from official news sources. We want this number to deviate as much as possible from the expected number. Big surprise will give us a good trade, because the market already priced in the expected number, so if the actual numbers are different the market will usually adjust to the new numbers.

4. Deviation ( trigger) numbers: Difference between the expected and actual numbers. Deviation is the factor that takes us into the trade. If the numbers do not deviate enough, the market usually does not move as much as we would like. That is why we will have different deviations for different trades that we will take and they will be called triggers.

Interest rate trade example

For example we will take the interest rate decision, because interest rates are the most important factor of the Forex market: On the above mentioned sites you can get the exact time and date of the news release. We want to trade ECB interest rate decision, so we check the time of the release and the numbers which are present:

Previous: 1% this is the number that was released at the previous ECB meeting Expected: 1% this is the number that is expected by majority of economists around the globe. The number represents the consensus of economist estimations. Actual: this is the number that will be released at the scheduled time of the release, and we want this number to differ (deviate) from the expected number to enter the trade

Trading plan for this particular release: If the actual number is 1%, we stand asside. If the actual number is 1,25%, we buy the Euros (Eur/Usd, Eur/Cad...) If the actual number is 0.75%, we sell the Euros (Eur/Usd, Eur/Cad...)

Our deviation triggers for this trade will be +0,25% and -0,25%

What does it mean if the number is bigger from the expected consensus?
In this particular case it means that ECB is taking a hawkish stand, and they will fight inflation with higher rates which means that investors will start buying into Euro, because they will get higher returns on the interest rates (1,25%) so they dump the lower yielding assets (chf,usd,cad) and buy the EUR.

What does it mean if the number stays the same?

Even if the rates are left unchanged we can get some trading volatility, but we have to wait for the comments from the ECB governing official. Usually the ECB has a press conference one hour after the numbers are released, and there we can get the details about the banks monetary policy in the future.

What does it mean if the number is lower from expected consesus?

ECB is taking a dovish stand, which means it will be lowering rates to help the economy. Basically to help companies to borrow money at lower rates which in the end should result as bigger GDP. In this case we start selling Euros and buying higher yielding currencies or assets (stocks, AUD...)

Tradable scheduled major news

We will present the best major news that provide enough volatility and liquidity that are worth trading. We usually trade the news on the forex markets, but there are some releases that are better traded on the stock indexes (almost all US releases).

1. Interest rates decisions

Best traded on FX markets, the trading mechanics of the interest rates we already explained in the section above.

Why traders care?

Short term interest rates are significant factor in currency valuation - traders look at most other indicators merely to predict how rates will change in the future. Every economic release that we will cover later actually predicts future politics of the central banks, that is determined by the interest rate.

How do interest rates affect the markets?

If the central bank increases the rates, the domestic currency should appreciate and vice versa. Going into more details: If central banks are raising interest rates that means that the economy is in good state and is overheating, so they are trying to cool the economy to prevent hard landings .

When central banks are decreasing interest rates that means that the economy is not in good shape and they are trying to boost the economy with lower interest rates to spur the investments.

But as we know the results can sometimes be quite different from the expectations of the central bankers.

Best traded FX pairs

Eur/Usd - for ECB and FED decisions Aud/Usd - for RBA decisions Usd/Cad - for BOC decisions Nzd/Usd - for RBNZ decisions Gbp/Usd - for BOE decisions

Some will ask why dont we trade interest rate decisions from other countries. You can trade other more exotic interest rate decisions as long as you know your costs. (Bigger spreads, liquidity, movement of the exotic currencies etc.) The majors have the the liquidity and low spreads that you will want to have when trading news.

2. Gross Domestic Product (GDP)

Why traders care?

GDP is usually released quarterly(among the majors Canada is unique because they release the data on a monthly basis), and has a big effect on the markets because it's the broadest measure of economic activity and the primary gauge of the economy's health.

GDP is annualized change in the value of all goods and services by the economy and usually has more releases.

US GDP

There are 3 versions of GDP released a month apart - Advance, Preliminary, and Final. The Advance release is the earliest and thus tends to have the most impact. We trade all of them but later versions we trade with a bigger (trigger) deviation because they tend to move less.

Advance US GDP q/q

This is the first release and comes out 30 days after the quarter ends, so we will be using triggers of + -0.1% (speculative) or +- 0.2% (safer).

Trading plan ( numbers are from 27.1.2012)

Triggers will be +-0.2% Expected number: 3% Previous number: 1.8% Actual: ???

If the actual number will be higher or equal than 3.2% we will be buying USD/JPY or SP 500 futures, CFD. If the actual number will come out as expected or will be 3.1% 3 2.9% we will stay aside. NO TRADE! If the actual number will be lower or equal than 2.8% we will be selling USD/JPY or SP500 futures,cfd.

This is the way to trade all GDP releases from other countries with one little difference. Only US GDP releases are good for trading on the stock indexes, all other releases trade on the Forex pair or Forex Futures . For example, when trading Australian GDP release you will use only AUD forex pairs and so on.

Specials

Canadian GDP release Canada is the only country that releases GDP on monthly basis, so we usually use bigger triggers +0.2%, 0.3%.

German GDP release (risky) Because Germany is the biggest exporter from the EU or the so called motor of the EU, nice deviations of 0.3% can move EUR/USD pair. Germany has two releases, preliminary and final. If you will trade this, trade only the preliminary release.

3. Unemployment/Employment figures
The number of jobs being created can signify whether an economy is improving, overheating, or waning. Because the employment numbers are very good opportunities for news trading we will explain trades separately by countries.

3.1 US employment numbers

NFP

The trade of the trades comes at the beginning of the month and is called the Non-Farm Payrolls. NFP provides volatility that traders seek and also presents very good oportunities for trading.On a good day and a decent deviation this report can move markets over 100 points, and it tends to move wide range of markets, from stocks to bonds, commodities and forex.

Why traders care?

Nonfarm payroll employment is an influential statistic and economic indicator released monthly by the United States Department of Labor as part of a comprehensive report on the state of the labor market and it represents the total number of paid U.S. workers of any business. The total nonfarm payroll accounts for approximately 80% of the workers who produce the entire gross domestic product of the United States.

Good to know when trading NFP

NFP numbers come out simultaneously with unemployment figures, and when they come out in the same direction you can have a monster trade, but sometimes it happens that you can have a conflict between employment numbers and unemployment rate. When this happens it is usually best not to trade or to come out of the trade ASAP. This events are rare but when they happen you can have a recipe for disaster.

There is also one other number that sometimes can have a disastrous effect on the movement of the markets and that number is a revision of the previous month number. If the revision is big enough it can reverse the movement of the markets.

It is advisable always to check all the numbers when they come out and only if everything stays correlated in the same direction as the NFP numbers you can ride the trade safely otherwise be careful or stay out.

How to trade?

Usual safe deviations for NFP are between 50K and 100K,it depends of the movement of the markets over the trading week, but most of the news traders are using deviations around 75K, which is considered a safe deviation when markets tend to move around 100 points. Bigger number than expected is good for the stock indexes, oil, and JPY denominated pairs.

Trading plan from April 6, 2012

Triggers will be +-75K Expected number :207K Previous number:240K Actual: ?

If the NFP number will come out higher than 282K we will buy SP500 or USD/JPY or AUD/JPY. If the NFP number will be smaller than the trigger in both ways we will not take the trade. If the NFP number will come out lower than 132K we will sell the SP 500 or USD/JPY or AUD/JPY.

Remember when trading these reports it is good to have trailing stops set, because sometimes there can be a reversal of the good move just because the revision numbers do not correlate with this months number. NFP trade is usually the trade that is the most profitable and it tends to move more than other news trades, when the certain criteria are met.

3.2 Canadian employment numbers

Canadian employment numbers are released simultaneously with three employment figures. Employment change Unemployment rate Unemployment claims

When trading Canadian employment release we will focus on Employment change numbers, but you have to check also the unemployment rate figures. As we mentioned before at NFP there could be a conflict between Employment change and Unemployment rate, and when that happens it is best not to trade or to exit the trade ASAP.

Trading plan for April 5 2012

We will trade Employment change numbers, but there is also a little catch when trading Canadian release. When you trade it on forex the pair is CAD denominated, so for good Canadian numbers you will sell the pair and for bad numbers you will buy the pair.

Triggers will be +-20K. Expected number :11K Previous number:-2.8K Actual: ?

If the actual numbers are higher or equal than 31K, that is good for the currency so we will sell the USD/CAD or if you are using CAD futures you will buy. If the actual numbers will be smaller than we will stand aside. If the actual numbers are lower or equal than -9K, that is bad for the currency so we will buy USD/CAD or sell CAD futures.

3.3 Other countries

There are also releases from other countries that are good for trading the employment figures and the procedure is the same as the above mentioned.

Australian employment figures

Two simultaneous releases: -Employment Change -Unemployment Rate

We always focus on the Employment Change numbers

Trading plan

Triggers are +-20 and the procedures for trading are the same as with before mentioned trades.

If the triggers are hit on the +20K we will be buying the AUD/USD, or if the triggers for the downside will be hit -20K we will be selling the AUD/USD.

Be ready to skip or exit the trade if the Employment Change and Unemployment numbers come out in conflict. Conflict occurs rarely but it does and it looks like this: Employment Change numbers come out +40 VS. expected 15, but Unemployment Rate comes out 8.4% VS expected 8.2%. When this situation occurs it is better to stay out or to exit ASAP.

Problems with Australian releases

Sometimes Australian reports are released locally slightly before the major news agencies which causes a premature spike. When this occurs be prepared to skip the trade, specially if the spike is bigger than 20-30 pips.

New Zealand employment trade

NZ Employment figures are released quarterly in percentage points. There are two simultaneous releases. Employment Change q/q Unemployment Rate

We always focus on the Employment Change figures.

Trading plan

Triggers that we will use are +- 0.5%, where lower number is bad for the NZD and higher number is good for the NZD. We trade it on the NZD/USD and NZD/JPY pairs, but when trading JPY nominated pair one must consider volatility that is sometimes unpredictable.

If the higher number trigger is hit buy NZD/USD or NZD/JPY. If the lower number trigger is hit sell NZD/USD or NZD/JPY.

Always check if the Unemployment rate number is not in conflict with the Employment numbers.If that is the case you know already what to do.

Change

4. Retail Sales
This is the economic indicator that measures the amount of money consumers spent in restaurants, stores, theaters, and other retail outlets. Consumer spending is one of the main drivers of economy. The amount is measured against the amount for previous month, and a percentage is derived of whether it's more or less. If the retail sales this month are higher than previous month, the percentage number is positive. If the retail sales this month are lower than previous month, the percentage number is negative.

Why traders care?

Strong retail sales means healthy economy and confident consumers. This also means that most likely inflation is going to pick up, and the government will be forced to raise interest rates. And when a country has high interest rates, there is much more interest to invest into their currency, so the demand for currency increases, and subsequently, the currency goes up.

Trading Plan (16.4.2012)

The RS number usually come out at the beginning of the month for the previous month, and the are two components. Retail sales and Core retail sales but we always focus on the core retail sales, because in this data they exclude the volatile components (car sales, oil derivative sales etc.) of the retail sales, that usually distort the underlying trend.

For our example we will take US Retail Sales numbers, but we trade these numbers on every major contries, the only difference is, that we can trade US Retail Sales numbers also on the stock indexes. For other countries we use only forex pairs or futures forex.

Triggers will be +- 0.5% Expected numbers: 0.6% Previous numbers: 0.9% Actual:???

If the actual number will be higher or equal than 1.1% we will buy SP500 or USD/JPY. If the actual number will be lower or equal than 0.1% we will sell SP500 or USD/JPY. In any other case we will stand aside, because triggers will not be hit.

Good to know
It happens rarely but it does and its called a conflict which occurs between core RS and main Retail sales numbers. If that occurs get out of the trade ASAP or even better, you can use conflict resolution tool, and you will stay safe.

When trading Australian RS, we use the main numbers (AUD Retail Sales m/m). If the triggers are hit we will buy/sell AUD/USD.

When trading UK RS there we will be trading the core m/m numbers that are noted like this: UK Retail Sales Ex AutoFuel m/m. If the triggers are hit we will buy/sell GBP/USD.

New Zealand RS numbers come out quarterly and there you have Core and the main RS number. We trade as usually the Core numbers. If the triggers are hit we will buy/sell NZD/USD.

When Canadian RS numbers, we will trade Core numbers and be sure if you are trading forex on USD/CAD pair to remember that trading this pair is reversed. You sell if higher trigger is hit and vice versa.

5. Inflation numbers
Consumer Price Index
A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food and medical care. The CPI is calculated by taking price changes for each item in the predetermined basket of goods and averaging them.Goods are weighted according to their importance. Changes in CPI are used to assess price changes associated with the cost of living. CPI is one of the most frequently used statistics for identifying periods of inflation or deflation.

Why traders care ?

Consumer prices account for a majority of overall inflation. Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates out of respect for their inflation containment mandate. Every central bank has their inflation target set usually around 2-3% per annum. When these targets are breached, central bankers usually start to reset the interest rates. If the CPI is showing signs of deflation as we are used to since the default of Lehman brothers, central banks start to look for lowering interest rates causing the value of domestic currency to fall or vice versa. If CPI is higher than the target of Cental bank they will look to rise the interest rates and domestic currency will go up.

Trading Plan for US CPI (13 April 2012)

There are two simultaneous releases, headline and the core numbers. We will always focus on the core numbers where data is computed without food and energy, because they they tend to be very volatile factors and distort the underlying trend. FOMC usually pays the most attention to the Core data and so are the traders.

These days most of the traders do not pose allot of attention to the CPI numbers because most of the central banks have their interest rates set at record low levels and are using quantitative easing policies, trying to burst the economy and spur inflation.To put this in other words they will not be prepare to rise interest rates so easily if the inflation will be bigger than the inflation targets.

Triggers will be +-0.2% Expected numbers: 0.2% Previous numbers: 0.1% Actual:???

If the actual numbers will be higher or equal than 0.4% we will be buying USD/JPY. (We usually do not trade stock indexes for CPI releases) If the actual numbers will be lower or equal than 0.0% we will be selling USD/JPY. NO TRADE if triggers are not hit.

Good to know
Sometimes we can have a conflict between headline and core numbers, if this occurs stay out of the trade, or exit ASAP. You can also use conflict prevention software and stay safe.

We trade all the CPI numbers from the major countries the same way as we described above.

6. Manufacturing sector surveys

There are many different manufacturing sector surveys for each major country, so we will define trading separately for each country.

United States ISM Manufacturing PMI

This indicator is released monthly and is based on surveyed purchasing managers.It is derived from a survey of about 400 purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories.

Why traders care?

ISM Manufacturing Index a leading indicator of economic health - businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company's view of the economy. Index above 50 indicates industry expansion, below it indicates contraction.

Trading plan (5. March 2012)

Triggers will be +-2 Expected number: 56 Previous number: 56.8 Actual number:???

If the actual number is higher or equal than 58, we will be buying USD/JPY or SP500. If the actual number is lower or equal than 54, we will be selling USD/JPY or SP500. If the triggers are not hit we will stand aside, no trade.

ISM Non-Manufacturing PMI

The same indicator as above , the only difference is that it excludes the manufacturing industry.

Trading plan

The same as above and we also use the same triggers.

Philly Fed Manufacturing Index

Survey of about 250 manufacturers in the Philadelphia Federal Reserve district which asks respondents to rate the relative level of general business conditions.

Why traders care?

It's a leading indicator of economic health - businesses react quickly to market conditions, and changes in their sentiment can be an early signal of future economic activity such as spending, hiring, and investment. Above 0 indicates improving conditions, below indicates worsening conditions.

Trading plan

We will trade this news only on stock indexes and with the trigger of +-10. Procedure is the same as above. Higher number we buy stock indexes and vice versa. Do not trade this on forex because it rarely produces enough movement to be profitable.

Core Durable Goods Orders m/m

Change in the total value of new purchase orders placed with manufacturers for durable goods, excluding transportation items.

Why traders care ?

The new orders numbers are closely followed by market participants as they provide indications on current economic conditions as well as future production commitments in the manufacturing sector. The new orders data is collated by the U.S. Census Bureau in its monthly manufacturers' shipments, inventories and orders (M3) survey, which covers manufacturing establishments with $500 million or more in annual shipments.

Trading Plan

Again we have a headline and the core number, but we will focus on the core number. It is also advisable to use conflict prevention tools to prevent trading unwanted conflicts.

Triggers will be +-2.5% and we can use forex and stock indexes, but stock indexes tend to make more movent. Procedure for trading is the same as above.When the higher trigger is hit we buy and vice versa.

United Kingdom UK Manufacturing PMI

This comes out on the first working day of every month @ 10:28 CET. Thompson subscribers get the data 2 minutes earlier, so the main move is started at 10:28 CET. Data is derived from a survey of about 600 purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories.

Why traders care?

A number of 50 means that on average, the manufacturing industry in the UK did not improve over previously measured month. A number above 50 means that the manufacturing industry expanded over previously measured month. A number below 50 means that the manufacturing industry contracted over previously measured month. Better number is good for the domestic currency and vice versa.

Trading plan

We will use triggers of +-2.5

Trading procedure is the same as with the firs example, just that we trade it only on GBP/USD. If the higher trigger is hit we buy GBP/USD and vice versa.

7. Business sentiment surveys

This set of data often do not provide profitable results so we will check only German IFO numbers, that tend to provide best trading opportunities.

Ifo Bussiness Climate Survey (Germany)

A key monthly survey that measures the business climate in Germany. It is widely followed as an early indicator of the state of the German economy. The Ifo Business Climate Survey is based on approximately 7,000 monthly survey responses from firms in manufacturing, construction, wholesale and retail. As the largest economy in the European Union, Germany's business climate has implications for the rest of the European Union.

Why traders care?

This survey is highly respected due to its large sample size and historic correlation with German and wider Eurozone economic conditions. It tends to create a hefty market impact upon release. Source changed series from a base year of 2000 to a base year of 2005 as of May 2011. Ifo BCS is a German economic indicator, but because the Germany has the biggest economy in the EU, it affects the EUR/USD. Higher numbers are good for the EUR and vice versa.

Trading plan (26.March 2012)

We will use triggers of +- 8 Expected number: 109.7 Previous number: 109.7 Actual number:???

If the actual number is higher or equal than 117.7 we will buy EUR/USD or DAX (if you are willing to risk more) If the actual number is lower or equal than 101.7 we will sell EUR/USD or DAX(if you are willing to risk more) Any other result will be a NO TRADE.

Good to know
This trade on general does not provide a lot of movement, so be prepared to exit ASAP. On general this is not considered as a very safe trade, so if you do not want to risk more than you have to it is better to wait for better trades and skip this one.

8. Consumer confidence surveys

US Preliminary UoM Consumer sentiment (University of Michigan)
A statistical measurement and economic indicator of the overall health of the economy as determined by consumer opinion. Consumer sentiment takes into account an individual's feelings toward his or her own current financial health, the health of the economy in the short term and the prospects for longer term economic growth.

Why traders care?

Consumer sentiment developed as an economic statistic during the mid-20th century, and has become a barometer whose results influence public policy, economic policy and the stock markets. When consumer sentiment is less positive, markets typically react bearishly and vice versa.

Trading plan (16. March 2012)

There are two versions of this data, Preliminary and Revised, but we will focus on the first one because it tends to have the most impact on the markets.

We will use triggers of +-6. Expected number: 75.8 Previous number: 75.3 Actual:???

If the actual number will be higher or equal than 81,8 then we will be buying USD/JPY or SP500. If the actual number will be lower or equal than 69.3 then we will be selling USD/JPY or SP500. Any other number we will stand aside.

Guidelines
When trading US news, remember that they tend to move better if you trade them on the stock indexes, with exception of the CPI and Interest rate news.

When trading releases from other countries you always use FOREX or FOREX FUTURES. Trading these news on the stock indexes will most likely result in losses.

When trading Canadian releases remember that if you are trading FOREX USD/CAD you will also have to reverse the triggers. Positive trigger will sell the pair and vice versa.

When trading Unemployment Rate, remember that lower number is better for the economy and vice versa

Do not chase the trade if the triggers are not hit. Wait for another opportunity.

Do not trade or exit the trade ASAP if there is a conflict between simultaneous released numbers. Use the conflict prevention tool to make sure you stay away from the conflict situations that can result in great losses

Good luck trading!

In this guide we explained basics of news trading on the major news trades that can produce good results when trading according to predetermined plan, using the suggested triggers and with regards to the current market conditions. There will be also a guideline sent by mail for each news trade that will have a good potential Always remember that news trading is very risky and can result in great losses, but on the other hand provide good profits.