I made this short video to show you a real live example of a trade I made on EURUSD. I traded it according to the rules of a short term system I trade which I’ve recently documented in a PDF guide here.
If you haven’t already read it then I recommend you have a look over it because it might just interest you.
How to Profit from New Announcements
For those of you who know me, you will know I’m a technical trader. I look for trade set ups from price action on the charts. I don’t follow the news! On the day before I made this particular trade, I saw a setup. This was an “inside day”. I then placed my orders to enter the market if it broke out of it’s narrow range the next day. I go either long or short, whichever way the market moves.
The market sure did break out! There was a huge move to the downside and my Short order was filled. I exited towards the end of the day according to the rules, taking over a 4R profit.
It wasn’t until the next day that I found out the reason for such a big move in the Euro was due to a news announcement that everybody was waiting on. Most people knew the announcement was coming but didn’t know how the markets would react.
The beauty of trading a “break out” system like this one, is that you don’t need to anticipate which way the market may react to the news. You just go with the flow!
You can see in the video below the actual trade, and where I placed all the relevant orders to get that profit.