c07 JWBT016-Busby October 1, 2008 21:9 Printer: TBD
92 STRATEGIES TO WIN
FIGURE 7.3 A 30-minute chart of the E-mini S&P 500 futures shows the news
break. Because this is an after-hours time frame, the data recorded begins on May 1,- The trade was made on May 2, 2008, with the 7:30AMcentral time news
release. Prices shot up on the news and then settled down after digesting it. With my
new software, NewsTraderTM, I was able to use the news to make money.
we were able to take some profits from the market. We traded the E-mini
S&P futures, and the trade is charted in Figure 7.3.
Again, those who are beginners should never try to trade a news
event because prices are too unpredictable. As the above chart shows, af-
ter traders considered the move, prices gradually moved down. A trader
has to be quick and right to make money at the time the news comes out.
That takes experience and practice. Practice and hone your skills with a
simulation; not when money is on the line.A 9:00 News Strategy
The first thing to note about this strategy is the time that it is employed.
At 9:00AMwe are trading in Time Segment 3. The day-trading session in
the United States has begun. American financial markets are leading the