By Darrell Martin
There are ways to trade news events that move the markets only slightly and then settle down again sometimes back to where the market originally was before the event.
You don’t need to know which direction they are going to move the market either.
Unless you have a crystal ball, it’s almost impossible to know which way a market will go during or after news is announced. Apex Investing has researched many news events and found the ones which move the markets consistently and with some consistency in the number of ticks per move as well.
Tuesday, January 27, 2015, the Census Bureau will release the percentage of change in US Core Durable and Durable Goods Orders at 8:30 AM EST. To trade this event you can use Nadex Spreads and set up an Iron Condor strategy.
To do this you want to buy the lower spread and sell the upper spread where the upper spread’s floor shares the same price as the lower spread’s ceiling price. These events are announced around the 26th day after the previous month ends and if the actual numbers are greater than the forecast then it’s good for currency.
You can enter your spreads trading the EUR/USD as early as 8:00 AM EST for a 10:00 AM EST expiration. You want to find spreads that will give you at least a $25 minimum profit potential. If there is not enough premium for this in the spreads, then there is no trade.
Core Durable Goods Orders measure the total value of the new purchase orders placed with manufacturers for durable goods excluding transportation items.
Since orders for transportation items such as airplanes are volatile, those orders can distort the trend. Therefore, using just the Core data is a better gauge of trends. The Durable Goods Orders are orders for hard products for items having a life expectancy of greater than 3 years; for example autos, computers, appliances and airplanes would fall under Durable Goods Orders.
Both these reports are leading indicators of production signaling whether manufacturers will increase activity as they work to fill orders.
Just after the announcement the market may move and then settle back down. The closer to the center of your spreads it settles at expiration the greater profit you will make.
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.