Top 7 News Trading Strategies Every Trader Should Know

You are ready to earn money from trading during news events. Then, you need to learn news trading strategies. You need to apply many techniques. Many traders lose money because they don't make a clear plan. News can move the market very fast. It might cause your trading risk. With the right strategy, you can trade smartly.

You can catch big moves and make a profit. In this blog, you will learn 7 easy strategies. These are great for beginners and also for expert traders. Each approach is safe and straightforward. They will help you trade with confidence. So, let's learn how to deal better during significant news events.

Top 7 News Trading Strategies in Simple Words

Here we have explain most essential and strategies just for you. Follow our easy guiedlines and enjoy more.

1 Pre-News Trend Analysis

Pre-News Trend Analysis means checking the price before news. If the price is moving, it may continue that way with the news. For example, if EUR/USD goes up, it may keep going up with positive news. Prices often follow the trend after news. Check the price trend before the news.

How to Do It

• Check the Chart: Look at the 1-hour or 30-minute chart.
• Find the Trend: See if the price is moving up or down.
• Follow the Trend: If the trend is strong and the news is good, you must follow the trend.
• Avoid Fighting the Trend: Don’t go against a strong trend without a good reason.

Example: If EUR/USD goes up before a rate hike, the price may go higher with the news.

2. Straddle Strategy

The Straddle Strategy is a safe way to trade news. You prepare for both price increases and decreases. This strategy helps you catch any big price move, no matter which direction it goes.

How to do it

• Place a buy stop order above the current price
• Place a sell stop order below the current price
• When the news is released, one trade gets activated, and the other gets cancelled

Example: Suppose, your current GBP/USD is at 1.2500, set a buy stop at 1.2550 and a sell stop at 1.2450.

If the price goes up, the buy order will trigger. If the price goes down, the sell order will trigger. This helps you catch the move no matter which way the price goes.

3. Post-News Retracement Trading

Post-News Retracement Trading means trade after the news move is over. When news comes out, prices often jump quickly. Then, many traders close their trades to take profits. It makes the price come back down or up a little ,this is called a retracement.It’s like the market taking a small break. You can trade during this small move and make quick profits.

How to do it:

• First, wait for the big news move to happen.
• Then, watch carefully if the price starts to pull back.
• Enter a trade in the opposite direction of the big move.

Example: If the price shoots up 80 pips after news, it might fall back 30 pips.You can trade this small fall and make profit.

Use tools like Fibonacci retracement to find good points to enter the trade. It shows where the price might stop and turn back.

4. Breakout Trading on News Release

Big news can break strong price levels. After breaking, the price often keeps moving the same way. If support breaks, price usually falls more.If resistance breaks, price usually goes higher. Traders use this to catch big moves after news

How to do it:

• Find key support and resistance levels on the chart
• Wait for the news release
• If price breaks through, enter the trade in the same direction

Example: If USD/JPY breaks above 150.00 after a strong jobs report, it may rise to 151 or more. This strategy works best with high-impact news.

5. Sentiment-Based Trading

Sentiment-Based Trading means trading based on how people feel about the news. Sometimes, even small news can move the market because traders react emotionally. If many traders are buying, the price can go up. If many are selling, the price can fall.

How to do it:

• Read news and headlines.
• Watch how traders are reacting
• If most are buying, you can buy too. If most are selling, you can sell too.

Example: Suppose, someone says gold is a great option and many traders are also buying, you can buy too, but always check the market first before jumping in.

6. Trading with Economic Calendar

The economic calendar tells you when important news will happen and how it might move the market.

How to use it:

• Go to websites like Forex Factory or Investing.com.
• Check the calendar every day before you trade.
• Focus on news marked in red or orange. These are high-impact events.
• Make a plan before the news is released. Decide if you will trade or stay out.

Example: If the NFP report is coming on Friday at 8:30 AM EST, get ready at least 20 minutes ago. The market can move very fast when the news hits.

News might cause large price jumps. Knowing the schedule properly helps you avoid unexpected losses and find better trading setups.

7.Use of Stop-Loss in High Volatility

News events can create massive volatility in the markets. Prices can move fast and unpredictably, leading to big gains or losses. That’s why using a stop-loss is essential to protect your capital.

News events can create massive volatility in the markets. Prices can move fast and unpredictably, leading to big gains or losses. That’s why using a stop-loss is essential to protect your capital.

How to do it:

• Set a tight stop-loss before the news is released.
• Adjust your lot size to keep potential losses manageable.
• Never trade using 100% of your balance, leave a buffer!

Example: if you have $1,000, you can risk only $20. You buy at 1.2000 and set a stop-loss at 1.1980. If the price goes down, you will lose just $20. In this way, you can protect the rest of your money and avoid losses.

Always risk only 1–2% of your account per trade. This keeps you in the game even if a few trades go against you

Why News Trading Strategies Matters

News trading is a popular way to make money. It creates big chances. During important news events, prices can move quickly. Sometimes the changes are over 20, 50, or even 100 pips in just a few minutes.

This fast movement can help traders earn money quickly. Many traders even make their living by focusing only on news events.

News trading helps you in many ways:

• It lets you take advantage of big price moves, which can be very profitable.
• It gives you more trading chances, especially when markets are usually quiet.
• It helps you avoid boring hours when the market isn't moving much.
• It helps you understand why prices are moving. You can make smarter trades after that.

News trading also has risks. The market can be unpredictable, and fast price changes can lead to losses. That’s why having a clear plan or strategy is essential. A good strategy helps you stay focused and make safer trades.

Tips for Safe News Trading

• Use a demo account to practice before going live
• Trade only when the market is active
• Don’t guess the news result – prepare for both ways
• Control your emotions – don’t panic during spikes
• Avoid trading during very low or high spread times
• Use coupon codes to save more

Common Mistakes to Avoid

• Trading without checking the news time
• Ignoring stop-loss – leads to big losses
• Using high leverage – increases risk
• Chasing the market after the move
• Forgetting to check economic calendar

Final Thoughts

News trading can be very profitable.But only if you use a proper plan. These strategies above are proven and easy to follow. Start small.Practice on a demo account.Use stop-loss and protect your money.And don’t forget—use our coupon codes to save on trading fees. Start your trading journey by following tips