If you ever look online for people trading the news successfully you will more than likely fail and believe what people tell you. 'Its not possible'

Look, the people who trade successfully do not hang around on forums bragging about it, they are living life. This is why you will struggle to find successful traders online in forums and chat rooms.

But I can tell you trading the news is possible, I don't think that trading the actual release of the report is a good idea but a few minutes after the report is released when the market has calmed down and spreads return to normal you have an opportunity to make money.

I have personally manually back tested a system for trading major econ reports in the forex market on the GBPUSD. It is a very simple set and forget system that produces consistent profits on a monthly basis. Over the year of 2006 it produced an average of 290 pips a month and only took a few minutes to use if trades and news reports are planned in advance.

It is very important that you check your spread before entering a trade, make sure your broker is not still quoting crazy spreads.

Only trade reports with high expected impact on the market. Wait for the first 15 minute candle to form after the news report and set a buy order 2 pips above and a sell order 2 pips below each with a 20 pip trailing stop.

That's it! Its profitable and its simple.

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Source: www.a1articles.com