Every trader knows it — when big news hits, markets move fast. Whether it’s the Fed, FOMC statements, or key jobs data, these moments can turn calm charts into wild rollercoasters. The question is: Are you ready for it?
At DayTradeToWin, we teach traders not just to survive these events — but to understand and capitalize on the volatility that follows. Let’s break down how to approach trading around major news events, and why following the crowd often leads to costly mistakes.
Understanding News Events in Trading
Each trading day brings scheduled events that can shake up the markets — like manufacturing data, jobless claims, or the Fed’s interest rate announcements. You can easily find these events using the built-in News Indicator included with most of our software, or check the DayTradeToWin Economic Calendar on our website.
Both tools highlight high-impact (red) events — the ones that tend to cause the biggest market reactions.
Pro Tip: Always check the calendar before trading. News events often occur at 8:30 a.m., 10:00 a.m., 12:30 p.m., or 2:00 p.m. (ET). Knowing what’s coming keeps you from being blindsided by sudden volatility.
Why Most Traders Get Caught Off Guard
When the news hits, most traders react emotionally. They see a sudden spike and immediately jump in — placing bracket orders (buy stops above, sell stops below).
But here’s the problem: markets often fake one direction before reversing hard.
A typical pattern looks like this:
- News hits — market surges up.
- Traders chase the move — price stalls and reverses.
- Those who jumped in too early get stopped out as volatility spikes again.
The result? Emotional trades and unnecessary losses.
The Smarter Approach: Wait for the Reaction, Then Trade the Reversal
Instead of chasing the initial move, wait for the reaction.
A reaction usually shows up as a large candle — a quick surge in price fueled by traders piling in.
Then, pause. Let the dust settle.
Once that reaction candle forms, look for signs of a reversal — a move against the crowd. This is where smart traders find opportunity.
Why? Because once all those traders who bought the “good news” start getting stopped out, their exits fuel the move in the opposite direction.
That’s your edge.
“Don’t follow the crowd like sheep. Wait for the reaction, then trade the reversal.”
— DayTradeToWin Mentorship Team
Example: A Classic News Event Reversal
On a one-minute E-mini S&P chart, you might see a massive bullish candle after an announcement. Traders rush in — but when the market fails to continue, it reverses sharply downward.
Those trapped buyers are forced out, triggering a cascade of selling. The reversal move can often be just as strong — or stronger — than the initial reaction.
That’s where patience pays off.
Learn to Master News Trading With DayTradeToWin
Trading the news is not about guessing what the headlines mean — it’s about understanding how traders react and positioning yourself accordingly.
That’s exactly what we teach inside our Accelerated Mentorship Program — a complete, hands-on training that includes:
- Access to all proprietary software, including the Sonic and Autopilot systems
- Live daily trading room sessions
- Ongoing mentorship and Q&A
- Exclusive member discounts and bonuses
Ready to take your trading to the next level?
🎯 Start free today with a Free Member Account at DayTradeToWin.com.
You’ll get access to:
- Our news trading videos and tutorials
- The ABC software trial
- Real-world lessons in price action trading
Plus, use coupon code: SPOOKY15 for 15% off for a limited time!
Final Takeaway
News events don’t have to be scary — they can be your biggest opportunity.
All it takes is a smart plan, a calm approach, and the right guidance.
👉 Learn how to trade news events the right way — join DayTradeToWin today and start trading with confidence.
