Trade Early Morning News The Night Before With The Spread Scanner

Sometimes in life, schedules just don’t permit certain activities at desired times. For day traders who work regular daytime hours, the evening hours may be the only opportunity for trading. Fortunately, there are markets around the world, and their working hours may be the US evening hours. This is the case in the UK, as the London open is 3:00 AM ET and frequently schedules news to release in the early morning hours. Friday, December 23, at 4:30 AM ET, the UK Current Account news will be released. A strategy can be used to trade this event  the evening before instead of in the middle of the night.

The Current Account news is the difference in value between imported and exported goods and services, income flows, etc. It is reported quarterly and is linked to the demand in currency and currency being bought to place purchases in the country.

At 11:00 PM ET, trading GBP/USD Nadex Spreads, the trade can be entered for 7:00 AM ET expirations. The strategy is an Iron Condor, trading two spreads in anticipation of the market making a reactionary move and then pulling back. One spread is bought below the market, with its ceiling where the market is at the time. It is ready to profit in the event the market moves up or stays in its general area. Another spread is sold above the market with its floor being where the market is trading at the time and is ready to profit should the market move down or stay in its general area. If the market moves in either direction and pulls back to center between the spreads, then max profit is made.

Each spread should have a profit potential of $15 or more for a combined profit potential of $30 or more. Using the spread scanner, one can easily filter through to bring up possible spreads for the desired market and certain other parameters. Visual colored bars as well as numbers show the risk reward for each spread whether being bought or sold. An example of the spread scanner is shown below. The scanner makes learning and trading spreads much easier, with features for both beginners and advanced traders.

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When the market moves up or down 60 pips, there are 1:1 risk reward ratio points where stops can be placed. The breakeven points for this trade are at 30 pips above and below from where the market is at entry.

Free access to the trader designed spread scanner and free day trading education can be found at Apex Investing.