What is news trading?
Before I introduce the news trading, I will first release my transaction details that I actually traded news. The details of the transactions below are news spike trading history among news trading.
Now that there are so many people in the world who are doing news trading, news spike trading is quite difficult except for some news. But in 2005, when I first started trading news, there were few news traders worldwide, so I had a few seconds before the charts moved after the economic indicators were released. (The chart is now moving almost simultaneously with the announcement of the economic data.)
So when the economic indicators were released and the charts were just about to move, and I entered that short moment, I was able to get huge profits in a few seconds. Since I checked out the published economic indicators, I had little chance of losing them.
So let's take a look at the details of the news trading transaction I traded 10 years ago.
This is the result of the news trading on the pound economic index released on March 22, 2007 at 05:30, which I can't remember what news it was 10 years ago. So I used the forexfactory site to search for what news it was, and the following results came out.
The economic indicators that BOE announced at the time were GBP Retail Sales, and as you can see, the results were much better than market expectations.
For reference, Retail Sales is the leading indicator of GDP. In short, if you get good Retail Sales, you're likely to get better GDP, and you can naturally expect that the possibility of inflation in that currency will increase, and the probability of currency value going up.
Therefore, the short-term rise of the pound is so natural, as it was announced at 1.4%, which is much higher than the market consensus of 0.6%. In the scenarios I wrote at the time, if the figure was 1.2% or more, I would buy GBP, and if the figure was less than 0%, I would sell GBP. So I bought GBP right away when I checked the announcement.
At that time, about two hours before the announcement of the economic indicators, I analyzed the economic indicators and market conditions to be traded, and set up scenarios based on the figures to be announced. I usually trade GBP/USD or GBP/JPY when I trade GBP, but at that time I chose GBP/JPY.
At the time of chart capture (the time of the GBP Retail Sales announcement in the circle)
And I'll check the GBP Retail Sales figures released at 05:30 through paid news, and buy 20 lots at 231.37 for GBP/JPY at 5:30:02, two seconds after the prepared scenarios Then, 12 seconds later, at 5:30:14, I closed my position with a sell at 231.78.
In just 12 seconds, I earned 41 pips, and I made 820 pips, because I entered 20 lots without fear because the result was so obvious.
This is news spike trading. In fact, except for some news, it's hard to trade this way. So, I am currently doing pre news trading or news retracement trading.