There used to be a time when it was quite easy and profitable to trade the news. I used to do that for sometime. But like any other method which brings good, consistent money to the small traders, this method also caught the attention of the market makers and they have made sure that nowadays this method does not work well. This method is very simple.
All you had to do was place a buy order 20 pips above the current price and a sell order 20 pips below the current price just 2 mins before a major news released. If the news was good for the pair, it would shoot up, trigger the buy order and go further up thus helping us sit on a very good profit. The same was true for the sell as well. But now, slowly, the market makers have come up with the strategy to stop this. They don't guarantee orders to be filled during news times. They increase the spread. They don't allow us to close our positions at the rate that we want during news times. So many strategies to stop the small traders from making easy money.
But this is good in a way. Traders have to earn through the tough ways.Traders have to understand that money cannot be made easily. Everything in this world has to be worked for and earned and nothing is for free.So traders need to keep coming up with new strategies and new methods and keep changing these periodically to keep in pace with the changing market conditions. Traders always need to be on top of their game to make money consistently which is fair enough. If you launch a business,you keep thinking about marketing etc. and you keep pushing yourself to make money. Same strategy needs to be applied for trading as well. You need to keep pushing yourself, keep learning, keep gaining knowledge for you to make money. Never stop and never stagnate. A lake does not flow and so collects filth. A river keeps flowing and that's why it is always clear. So keep working and keep flowing so that you always have a clearpath to success.
Happy Trading!!!
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