Non directional transactions

If there is a way to quickly make money, even if you don't know if the market will rise or fall?

As long as there is sufficient price fluctuation, this is possible.

When will such fluctuations occur?When economic data or central bank announcements are released!

Our first consideration is which type of news we need to trade.

Earlier in this series of courses, we discussed news reports that can cause the greatest market volatility.

Ideally, you may only want to trade these news reports, as they are likely to trigger significant market fluctuations after their release.

What you need to do next is to at least20Observe the trading range of the exchange rate minutes ago. The high point of this range is likely to be the upward breakthrough point of the exchange rate, while the low point of the range may be the downward breakthrough point. It is worth noting that the narrower the range of exchange rate fluctuations, the greater the volatility that may be triggered after the news report is released.

The breakthrough point will be your entry point. This level is the price level you plan to set for the order. Your stop loss position should be set approximately above or below the breakthrough point20The level of the point, and your initial profit target should be the same as the range formed by the breakthrough point. This is what we call cross period trading - no matter which direction the price fluctuates, you have the opportunity to trade.

Given that you are ready to enter in any direction, all you need to do is wait for the news to be released. Sometimes, the exchange rate may initially fluctuate in a certain direction, but then you find yourself being knocked out at a stop loss because the exchange rate quickly moves in the opposite direction. However, the other entry order you previously placed may be triggered, and if you win the transaction on this order, you should be able to compensate for your initial loss and ultimately gain a small profit.

The best scenario is that the exchange rate only triggers one order you have set, and the price continues to fluctuate in a direction that benefits you. In this case, you will not incur any losses. No matter which direction the exchange rate fluctuates, if operated properly, you are likely to achieve profits.

One reason why non directional trading is so attractive is that it eliminates the influence of market sentiment - when volatility begins, all you want is profit. This allows you to take advantage of more trading opportunities to achieve profits, as the orders you set may trigger in any direction.

Of course, there are more news trading strategies, but no matter when you want to engage in news trading, the concepts we have discussed in this lesson will be helpful to you.