How to trading news
If you are a news trader, you fall into one of two camps: a directional bias or a non-directional bias. If you are a directional bias trader, you are anticipating that news will affect a currency’s exchange rate in a certain direction and plan on capitalizing off of that change. Non-directional bias traders, on the other hand, have a plan in place regardless of which direction the market goes in.
Directional bias traders are limited based upon their trading strategies. They anticipate that the market will move in a certain direction and if it doesn’t, either they do not enter the trade, or they lose money. Because of the limitations of directional biases, non-directional bias trading has become increasingly popular.
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These traders don’t care which direction the market is moving in as long as it does move. When a market moves, these traders have a plan in place for either outcome. This offers more flexibility and an opportunity for more money making opportunities.
Having a couple plans in place is important. Just as important is knowing exactly when to enact those plans. When a piece of news hits, you need to be prepared to make as much money as possible. Using the Oracle Trader during this time is also a great tool.
Without a directional bias, you are opening up the door to making money whatever the market does, but you still need to know which plan to execute. Identifying the trend that a currency is riding on shortly before news is released is an important part of this. This will also help you establish at what price to enter a trade since you will have the general anticipation of the news accounted for as well as an acceptable range pinpointed.