Many traders believe or think that when we trade the news, we need to predict what's gonna be actual release for the news; or some might even say it's purely a 50-50 guess work on buying or selling a certain currency pair.
THIS IS ALL A MISCONCEPTION!
Firstly as traders, we can't and we don't predict what's gonna be the actual release for the news. In fact no one can really predict accurately and consistently on news releases. Therefore, there is no point in doing that. Even if one can accurately predict the actual release of the news, price doesn't necessarily also react accordingly. A positive news doesn't mean price will rally; and a negative news doesn't mean price will drop!
Secondly as traders, we don't trade the market with guess work. Yes, there is definitely uncertainty and nothing is 100% guarantee in the market, but when we trade, we take high probability setups. We understand the market nature, we analyse how price develops, and we place our trades when we spot a high probability setup.
In reference to the upcoming CAD CPI and Core Retails Sales, CADJPY and GBPCAD are the two potential setups that we will be monitoring going into this evening risk event.
We are looking to sell the CADJPY should CAD weakens; and we are looking to sell the GBPCAD should CAD strengthens.
Will we definitely get a trade? NO
Will we definitely profit from this risk event? NO
Do we still trade? YES because we know these are high probability setups identified.
**Disclaimer - make sure you have a proper strategy and engagement technique before trading. This is NOT a trade call. Do your own due diligence.
THIS IS ALL A MISCONCEPTION!
Firstly as traders, we can't and we don't predict what's gonna be the actual release for the news. In fact no one can really predict accurately and consistently on news releases. Therefore, there is no point in doing that. Even if one can accurately predict the actual release of the news, price doesn't necessarily also react accordingly. A positive news doesn't mean price will rally; and a negative news doesn't mean price will drop!
Secondly as traders, we don't trade the market with guess work. Yes, there is definitely uncertainty and nothing is 100% guarantee in the market, but when we trade, we take high probability setups. We understand the market nature, we analyse how price develops, and we place our trades when we spot a high probability setup.
In reference to the upcoming CAD CPI and Core Retails Sales, CADJPY and GBPCAD are the two potential setups that we will be monitoring going into this evening risk event.
We are looking to sell the CADJPY should CAD weakens; and we are looking to sell the GBPCAD should CAD strengthens.
Will we definitely get a trade? NO
Will we definitely profit from this risk event? NO
Do we still trade? YES because we know these are high probability setups identified.
**Disclaimer - make sure you have a proper strategy and engagement technique before trading. This is NOT a trade call. Do your own due diligence.