c07 JWBT016-Busby October 1, 2008 21:9 Printer: TBD
94 STRATEGIES TO WIN
FIGURE 7.4 The chart on the far right is a chart of OIH. The chart on the left is
a chart of sweet crude oil futures. These charts were generated on my StockBoxTM
software. The data in the darkened boxes contains information DTI students need,
like the monthly and weekly opens and the daily highs and lows. The trade of OIH or
sweet crude was a nice one.to a news event, users of the software research the event and determine
the market’s forecast for that particular bit of news. A site that gives the
forecast is http://www.forexfactory.com. By going to this site, it is possible to
learn what traders and experts around the world think the numbers will be.
For example, if the GDP numbers are being reported, NewsTraderTMusers
need to know what the market expects the numbers to look like. Then
they are able to place orders to take advantage of unexpected numbers
that might be reported or deviations from the anticipated data that might
result in a profitable market move. The idea is that the market will react
strongly to unexpected news if that news is significant enough. Consider
again the GDP. If bad numbers are predicted but the economy does better
than anticipated, the good statistics will shock the market and there will
likely be a rally. Once the NewsTraderTMis properly programmed, it makes
the trade for the user.
Because the markets react so quickly to news, it is difficult to trade the
news without having the ability to receive news releases and data quickly.
Therefore, the NewsTraderTMis tied into a news service. The program re-
ceives the information and in milliseconds the trade is executed.
The NewsTraderTMsoftware is a great example of how I change and
adapt to market conditions. A short time ago, I did not attempt to trade the