Strategic Trading: Leveraging Economic News Events: “Trade the news”.

Preparation
and Timing:

Plan
to trade around high-impact news releases, such as the ISM
Manufacturing Index.

Ensure
you are online and ready to trade at least 5 minutes before the
scheduled news release time.

Chart
Analysis:

Use
a charting platform to monitor the currency pair you’re interested
in.

Check
the current price level approximately 15 minutes before the news
release.

Setting
Up Orders:

Identify
the current price level on the chart, for instance, let’s say it’s at
1.9696.

Prepare
to place two pending orders:

BUY
STOP order at 1.9696 +12 pips (1.9708)

SELL
STOP order at 1.9696 -12 pips (1.9684)

These
orders aim to capitalize on potential rapid market movements
following the news release.

Order
Parameters:

Set
a take profit (TP) target of +12 pips for each order.

Place
a stop-loss (SL) of -12 pips for each order to manage risk.

This
ensures a balanced risk-reward ratio for each trade.

Execution:

Place
the pending orders approximately 2-3 minutes before the news release.

Ensure
both BUY STOP and SELL STOP orders are in place.

News
Release:

At
10:00 am (Indonesia time), the news is released.

Monitor
the market closely for immediate price action following the news.

Outcomes:

If
the BUY STOP order is triggered, aim to exit the trade once it
reaches +12 pips.

If
the SELL STOP order is triggered, aim to exit the trade once it
reaches +12 pips.

Remember
to strictly adhere to the predefined TP and SL levels for risk
management.

Risk
Management:

Limit
the risk exposure by sticking to the predetermined pip values for TP
and SL.

Maintain
discipline and avoid adjusting TP or SL levels impulsively.

Profit
Calculation:

Aim
for a modest profit of +12 pips per trade.

Consistently
executing successful trades can lead to significant cumulative
profits over time.

Trade
Quantity and Lot Size:

Focus
on the quantity of trades rather than chasing large pip gains.

Trade
with a lot size that matches your risk tolerance and account size.

Example:

Let’s
assume you trade 20 high-impact news events in a month, each yielding
+12 pips profit.

With
a lot size of 0.2, you could potentially earn $480 using this
strategy in two weeks.

Conclusion:

This
strategy emphasizes disciplined trading around high-impact news
events.

By
aiming for modest profits with controlled risk, it offers a
systematic approach to trading.

Remember,
adapt the strategy to your own risk tolerance, trading style, and
market conditions, and always practice proper risk management.