Trading on news is a relatively simple and effective system (the statistics trading is also viewed as a part of it). In order to gain a profit from working with such a system it is necessary to refer to the calendar of macroeconomic statistics and find the nearest important events that can have an influence on the quotes. It is very simple.
The important events are highlighted in all calendars. Where exactly should be considered? The date, the exact time and the underlying asset, which is related to the particular news.
Here is a simple example. Let’s assume that on Thursday, January 21 the European Central Bank is going to hold a meeting. This is a significant event for the Euro, as Central Bank policy determines its value. The meeting starts at 16.30 GMT. Accordingly, on this day at the scheduled time the trader should be ready to open a trade.
The simplicity of this strategy is that you should not think about how bad or good the stats are, or how it will affect the Euro or other currencies in future. The most important thing is to gain a profit quickly, using the volatility growth.
After the appearance of important statistics one should notice an impulse on the market. This particular impulse is a clear way for the trader to get a profit. Let's continue with our example; Let’s assume that European Central Bank has decided to cut down the rate. In this case, the Euro will decline. You can purchase, for example, the "Down" option on the EUR/USD. If it has been decided to raise the interest rates, the euro will rise in price. Therefore, you can buy the EUR/USD currency pair.
When should the trade be opened?
Whether to open a transaction before or after the publication of data? It is better to be done right after the statistics have been released, as it definitely increases your chances of success. Indeed, prior to the publication of the statistics you can't know whether it is positive or negative. When data is published, it will be much easier to make a decision.