The Key to Trading Market Moving News
by Frank Soler of SolerInvestments.com

While I sit here waiting for the FOMC (Federal Open Market Committee) decision on interest rates, I figured it was a good time to talk about trading big news events of this type.

Usually, in the lead up to the announcement the markets will stay a bit flat.

But, as it gets closer and closer to the actual event they'll become more and more volatile.

When the rate decision (or other big news) is released, the markets will move strongly one way or another.

Then, it'll retrace some of this move, usually also quite violently.

There are numerous strategies you can use to trade these huge swings, but which is best?

It depends (sorry if you were hoping for a one size fits all answer here).

IF you're a trader who normally trades off of daily charts, you need to sit back and wait for what you normally look for on daily charts to form.

IF you normally trade the 60 minute time-frame, you need to wait for set-ups you normally look for on 60 minute charts to form.

I think you get the idea here: You look for patterns you normally look for on the time-frames you normally trade to appear.

And then you trade them using the strategies you normally use.

Sound too simple and boring? Good, that's real trading.

Of course, if you want the excitement of trading 5 minute charts when you usually trade 6 hour charts, and want to do so when the markets our moving at extreme speeds, and using a strategy you've never tried before..

Well, go ahead, but the market won't even thank you for your donations.

Frank Soler is a successful trader and Registered Investment Advisor. His company provides real-time Forex, Futures, Options, and Stock Picks, an eye-opening Trading Blog, and a free online trading education center.