By Darrell Martin
There are many scheduled news events out there for the day trader to take advantage of. The news event will rattle the markets making them move and that’s the time to pounce and take your trade.
Coming up on Thursday evening, January 8 at 7:30 PM EST, the Australian Bureau of Statistics will release the Australian Retail Sales numbers. The numbers are released monthly and measure the change in the total value of sales at the retail level.
The actual number, if it is greater than the forecast number, then it has a positive effect on currency.
Traders react to this news event because it is the primary gauge of consumer spending and consumer spending in many countries accounts for the majority of overall economic activity. In December the actual reading was an 0.4% increase while the forecast was only an 0.1% increase.
The tricky thing is no one can know for sure how the markets will react and which way the markets are going to go.
Therefore, to trade this event, a strategy that makes profits from the market going in either direction would be a good one. Enter the Iron Condor. This is an excellent strategy used with Nadex Spreads. Nadex stands for North American Derivatives Exchange.
At Apex Investing this news event, as well as others, has been analyzed to find possible strategies for trading when the event is scheduled, and how to set them up looking for a high probability for profit. One potential strategy for this news event is to set up an Iron Condor on the AUD/USD, entering as early as 6:00 PM EST, with an expiration of 11:00 PM EST.
To do this you would buy a lower Nadex spread and sell an upper Nadex spread, with the floor of your buy and the ceiling of your sell shared or being the same. You want a minimum profit potential of $30.
Once the news is released you can expect the market to react and then settle, hopefully coming back to, or as close to the middle of your two spreads as possible. At 11 PM EST if the spreads expire with the underlying being right in the middle, then that brings you the highest profit. Most likely however, the market will not settle exactly in the middle, but close to it.
A complete monthly news plan is available at Apex, to trade a variety of markets based on numerous news events. If you would like to learn more on how to trade Iron Condors or trade other news events, go to www.apexinvesting.com. Apex Investing Institute offers free education, and free access to the Nadex Binary and Spread Scanner Analyzers. Member traders are invited to trade in the rooms, take advantage of trade signal services, have key indicators and access the Apex Forum. The forum content is updated daily and includes over 9000 members. In a supportive learning community of seasoned as well as up and coming traders, traders of all levels learn how to trade Nadex binaries and spreads in depth, as well as futures, forex, stock and options, and gain an edge for successful trading overall.