How to Trade Around Financial News

It is time to learn about how to adjust your trading strategies around the news. You will also learn what to expect when you are looking at the different news for day trading.

So my main website that I look at for my Day Training is forexfactory.com. I’m sure this is the same when it comes to equities, options, and forex.

It is the best for me personally, it’s one of the best sites where I could see the different news of what is happening. So you start seeing news right as you open it up.

The thing is that right when you open up the website, you will have news from all countries right away. So because I trade the ES mini in the Futures market, which is the S&P 500, I make sure to go to the filters and chose to see only news for the US.

So obviously, if you’re trading forex, a lot of these other countries will definitely be important for you, so customize it for your needs.

In the filtering options, you will also find grey, yellow, orange, and red colors that they use to rate the news. Anything other than res is not high impact news. They usually don’t make the market move as much as the red. So I also uncheck everything but the red checkbox.

The last thing that you need to be careful of is to select the right currency. I just check the USD option and apply my filter.

Trading Strategy to Trade Around Financial News

So the market could do a couple of different things. It could be either completely sideways or very low volatility and go down in movement. It’s slow, it’s very decisive and it could be stuck in sideways.

When the news hit at exactly 11:00 a.m., the market could just go bam, bam, bam, bam all over the place.

Either way, you do not want to be anywhere near there. So, for me, my golden rule, my rule of thumb, is to not enter 15 minutes before and to give it another good 10 minutes to 15 minutes for the market to settle down.

So I just give myself a pocket of 30 minutes, 15 minutes before and 15 minutes after normally.

The majority of the high impact news all begin around 9:45 a.m. Eastern, 10:00 a.m, eastern, 10:30 a.m, eastern or 11:00 a.m, eastern. This is usually the best time to watch if the market is going to have some high impact news.

Always, always, always check this website first. I know there are others out there but this one is by far the best. And no, I’m not being paid to say this. Or if you have another one that is as powerful in detail when the news is coming out, especially for high impact check, make sure you check because trading into news will definitely stop you out.

Now, there is also one other news piece and it is called the FOMC and that is usually FOMC Wednesdays. It happens only on a Wednesday. You need to make sure you find out which Wednesday it is and that usually comes out around 2:00 p.m.

So technically on FOMC days, a lot of traders are actually completely finished trading by eleven-thirty or don’t fo it altogether. Because when FOMC actually comes out, it is so erratic that it’s just almost dangerous to even enter. So that’s my help. My advice on different news trading in and around the news.

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