Take Advantage Of Trading Opportunities After News Reports On The Economy

Every month there are numerous news reports scheduled for release revealing to the world how the economy is running.

These events present opportunities for traders to profit off the moves in the markets from their response to the reports. Friday, January 16, US CPI and Core CPI is scheduled for release at 8:30 AM EST.

Apex Investing tracks the past moves of the markets after these kinds of news events and has set up a schedule of its own for trading certain markets after the news is released.

The Bureau of Labor Statistics measures the change in price of goods and services purchased by consumers from month to month and the report is called the US CPI. Then it releases the change monthly. If the actual number is greater than the forecast it is good for currency.

The markets react to this report because consumer prices make up a majority of overall inflation which is important to currency valuation. It affects currency valuation because rising prices can lead the central bank to raise interest rates.

The way they determine if the number has increased, is by averaging the price of various good and services and then comparing them to the previous month’s sampling.

The other report coming out at the same time, 8:30 AM EST is the Core CPI. This report is the same as the previous report however, it excludes food and energy. Apparently, food and energy account for a quarter of the CPI but are very volatile and can distort the numbers.

Traders and the FOMC (Federal Open Market Committee) usually pay the majority of their attention to the Core CPI.

The market to watch for these news releases is the EUR/USD. It will react and move up or down and then settle. To take advantage of this move in the market you can set up an Iron Condor using Nadex Spreads.

This is a neutral strategy meaning if the market doesn’t take off in one direction, but makes a move and returns somewhere within that range, some profit can be made. Spreads have a floor and a ceiling. You want two spreads to set up your condor, an upper spread that you will sell with the floor being where the market is when you enter, and a lower spread that you buy and set up with the ceiling being where the market is when you enter.

Therefore the upper spread will share it’s floor with the lower spread’s ceiling.

You can enter your spreads as early as 8:00 AM EST for an expiration of 10:00 AM EST with a minimum profit potential of $30. If the market settles right in the middle, on the floor of your sold spread and the ceiling of your bought spread, then you will make the maximum profit. For every tick away from that middle you lose a tick of profit. On Nadex every tick is worth $1.

Trading Iron Condors on these kinds of scheduled news events can be lucrative trading. Remember, too, that you can trade more than one spread. If you don’t have a Nadex account, they are easy to open, provide great demo accounts, and only require $100 to open a live account.

Then be sure to visit Apex Investing for the news trade calendar, and to check out the Spread Scanner, an essential tool used to choose the best spreads.

A complete monthly news plan is available at Apex, to trade a variety of markets based on numerous news events. If you would like to learn more on how to trade Iron Condors or trade other news events, go to www.apexinvesting.com. Apex Investing Institute offers free education, and free access to the Nadex Binary and Spread Scanner Analyzers. Member traders are invited to trade in the rooms, take advantage of trade signal services, have key indicators and access the Apex Forum. The forum content is updated daily and includes over 9000 members. In a supportive learning community of seasoned as well as up and coming traders, traders of all levels learn how to trade Nadex binaries and spreads in depth, as well as futures, forex, stock and options, and gain an edge for successful trading overall.