I was skimming through Futures Magazine today and found an article that may be useful to some of you.  I'll admit that the content of the article was not new to me and may not be to some of you but I have to be cognizant of the fact that a lot of newer traders visit this site who may not be privy to this information.

Personally I don't trade the news in ways I once did.  This entailed placing orders before the news and depending on the movement after the release, automatically entering into a position.  I mainly found that due to technological restraints, trading the news was not smart.

Here are five things that you can do to put yourself in the best position to profit from trading the news.

1. Always use a stop-loss order - this is pretty much self explanatory.  You're absolutely crazy if you enter a trade, especially a news trader without a stop-loss.
2. Understand the globalization of markets - this takes a lot of experience and a dedication to learning it.  Read everything.
3. Know when the news events occur - you can't trade the news effectively if you don't know when the news occurs.  I use http://www.forexfactory.com to see what news events may be relevant to the currency market.
4. Early bird gets the worm - most of the major news events occur during the U.S. session or earlier so depending on where you live, you will have to be up early to trade it.  Some of you in Europe are already having lunch...
5. Use Fed announcements to make money - I did just this last week.  I made some money going long on the GBP/USD after the Fed announced a rate cut.  This is the most powerful of news releases so use it to your advantage. 

Read or add comments about this item.

No. 1 : Did You Make Your 1000 pips last week?

.. if not, you are doing something dead wrong; listening to the above advice for one.

Listen!
5% risk capital and 50% loosing trades - That\'s what everyone tries to \"teach\" us.

Bull! I repeatedly turned $200 into $2000+ within 2-3 weeks.
(yes, mini)

How? Staying on the right side! The only reason to over-mitigate risk and constantly loose half or more of your gains is, that you \'assume\' but don\'t really LOOK what the market does and thus mostly click the wrong button at the wrong time.

50 trades (+$2850), one looser ($-2,86). THAT\'s what I call trading.

See for yourself what\'s really possible: forextrading.myexpertzone.com

(hope the reference is ok for such a bold statement, but I just can\'t HEAR it anymore.)

pipmaker

Submitted by Forex Trader • 2007-11-05 07:00:04

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