As per the title! A pretty noob trader looking for people to share tips and or tricks or advice against trading the news. I'm preparing for the backlash as it seems this has a negative connotation here; please, keep it productive though.
I have been trying to trade the news recently with some success. At this stage I'm unsure whether to aim for a strict R:R of 1.5 or something else or to trail the price on the 5 minute chart. I usually wait for the announcement, take a position around 1 or 2 minutes after the craziness and if all goes to plan I put my stop to break even within a few minutes and put the stop up if it permits.
Note this is not the only strategy I trade. I use this strategy in combination with other strategies and instruments such as commodities and shares. Ie/ I am not a strict day trader, I can hold shares for months. What interests me in this strategy is that the cost is low (spread only) and there is always news, whilst shares may trade in a range for months.
I'll be posting up 5minute charts of examples, the older charts are ones that I did not trade. I will mention the ones I did trade. I don't keep full on records so I don't know what exactly the news was and what numbers were vs the expected numbers.
First example this one is a minute chart:
Jobs data on 16/04/15 at 11:30 am
Snippet from the age:
Australia's unemployment rate has dropped to 6.1 per cent in March from 6.3 per cent in the month prior, giving scope to the Reserve Bank of Australia to delay any further interest rates cuts.
apologies I don't have another screen shot later...