News Trading Strategies for Day Trading

Posted on 2023-04-27

News trading is a day trading strategy that involves taking advantage of market movements that occur after major news releases. These news releases can have a significant impact on the price of a security, and traders who are able to correctly anticipate the market reaction can often profit from these movements. In this article, we will discuss some popular news trading strategies for day trading.


Breakout Strategy:
The breakout strategy is a popular news trading strategy that involves entering a trade after a security has broken through a key level of support or resistance. Traders who use this strategy will often wait for a news release that is expected to have a significant impact on the market, and then enter a trade after the security has broken through a key level.

Fading the News:
Fading the news is a popular news trading strategy that involves entering a trade in the opposite direction of the initial market reaction. Traders who use this strategy will often wait for a news release that is expected to have a significant impact on the market, and then enter a trade in the opposite direction of the initial market reaction. This strategy can be risky, as the market may continue to move in the original direction.

Scalping the News:
Scalping the news is a popular news trading strategy that involves entering and exiting trades quickly after a news release. Traders who use this strategy will often enter a trade before the news release, and then exit the trade quickly after the market reacts to the news. This strategy can be profitable if executed properly, but requires traders to be very disciplined and to make quick decisions based on market movements.

Trend Trading:
Trend trading is a popular news trading strategy that involves entering a trade after a security has established a clear trend. Traders who use this strategy will often wait for a news release that is expected to confirm the existing trend, and then enter a trade after the market reacts to the news.

Conclusion:

News trading is a popular day trading strategy that can be very profitable if executed properly. The breakout strategy, fading the news, scalping the news, and trend trading are some of the most popular news trading strategies for day trading. However, it is important to remember that news trading is a high-risk strategy that requires traders to be very disciplined and to make quick decisions based on market movements. Traders should also be aware of the risks associated with news trading, including increased transaction costs and the potential for larger losses if trades are not managed properly. It is recommended that traders use a combination of technical and fundamental analysis when executing news trading strategies.

Looking to learn about forex? Take our crash courses at our Forex University. If you’re looking to setup a demo trading account then click here. Finally, if you’re looking for Forex Signals, Forex Portugal provides free & premium signals on-demand.

Found this article helpful?

[ 0 Out of 0 Found Helpful ]

Still no luck? we can help!

Submit a ticket and we’ll get back to you as soon as possible.

Support Chat Available
Account login is required to start, please login to your account to proceed.