News Trades!


#1

Just a quick question, in my experience trading the forex pairs I thought it was true if say there was news and the pair was eur/usd and the new came out that indicated a strong eur the eur/usd would go up, correct? or vice versa if the news came out and the news indicated a week eur then the eur/usd would go down? correct? well today a news announcement came out at 10am which indicated a very strong usd so how in the world did the gbp/usd go up?? and the eur/usd go up? these should have went down no?? also the usd/chf should have went up but it went down? seems all is reversed here?


#2

The assumption is not valid consistently. There is more to a news release than just the main number. There are usually other numbers and other statements in the news release. This is why we don’t trade directional that often with news. Even trying to trade after it you can see the market move the exact opposite of the main number reported.


#3

the iron condor is what you trade for the news correct? i watched a you tube video of yours on iron condor but it seemed you mainly talked binary butterfly’s, is there a video on just the iron condor? or are the butterfly’s the same? additionally i noticed on you news trading plan on this site you used to do a lot more straddles and strangles on the news and I see that you hardly do those on news any more and you do mostly do iron condors, is this because straddles and strangles were not profitable because a lot of the time news reports area bust? is the iron condor non directional?

Thanks for your time!


#4

Iron condor if stated iron condor. If it states straddle strangle etc… its specific by instrument

  • i walked through a straddle versus a iron condor in detail on this recent radio show archive.

I rarely did strangles - they are an optoin is no straddles are there

Straddles i found where not as consistent and you had to take profit or they lost (ie this is when iron condors profit).

So for consistency i found iron condors where much more consistent.

Iron Condor Webinar: http://apexinvesting.net/forum/news-trading-nadex-64/iron-condors-spreads-598.html

If you don’t understand spreads start on this webinar: Nadex Spreads From A to Z and Heding Day Trades on Futures, Forex and Indices - YouTube http://youtu.be/P3uNFINl4Sg


#5

Thank you Darrell I will check this out, I am familiar with spreads but need to understand the Iron Condor better, thx again for your time!