Forget about what you have heard on some magical trading system. There is no magic involved in this system and I've been successful in my trading. Fundamentals is a high risk, high reward form of trading. I've read postings about companies doing stop hunting, increasing spreads, etc. I'm here to tell you that you can trade pre-volatility and maximize the number of pips on news announcements. No more hedging and straddle nonsense. News for intelligent, thinking people.
Basic principle: A strong US expectation makes the USD go up. A weak US expectation makes the USD go down.
For example: Prior to September 1st nonfarm payroll, the media announced that the USD gained strength overnight against the JPY. Since I play the EUR/USD, it told me that the USD was going up therefore the EUR must head down. I played a Sell order on the EUR/USD for the nonfarm payroll and it went in the correct direction for a nice profit.
Common Knowledge: Speculating on the JPY is difficult because the Japanese government provides pre-release reports that slows down volatility. The US, UK, and EUR markets do the same thing but no through government. We have the business media but we don't use it properly. The business media is always trying to gain market share over the competition. They are the best source to let us know what is going on.
Suggestions (not an endorsement): Read Business Week, the Wall Street Journal, the New York Times, or the Investor's Business Daily. Listen to Bloomberg Radio. Watch Bloomberg Television and CNN. Keep informed.
This is how I get advanced predictions before market volatility for an announcement. This works for me and it should work for you.
Please let me know your successes.
Basic principle: A strong US expectation makes the USD go up. A weak US expectation makes the USD go down.
For example: Prior to September 1st nonfarm payroll, the media announced that the USD gained strength overnight against the JPY. Since I play the EUR/USD, it told me that the USD was going up therefore the EUR must head down. I played a Sell order on the EUR/USD for the nonfarm payroll and it went in the correct direction for a nice profit.
Common Knowledge: Speculating on the JPY is difficult because the Japanese government provides pre-release reports that slows down volatility. The US, UK, and EUR markets do the same thing but no through government. We have the business media but we don't use it properly. The business media is always trying to gain market share over the competition. They are the best source to let us know what is going on.
Suggestions (not an endorsement): Read Business Week, the Wall Street Journal, the New York Times, or the Investor's Business Daily. Listen to Bloomberg Radio. Watch Bloomberg Television and CNN. Keep informed.
This is how I get advanced predictions before market volatility for an announcement. This works for me and it should work for you.
Please let me know your successes.