How do you read a news headline safely?

Headlines move markets before you've finished reading them, and the first version is often wrong or incomplete — revisions follow within minutes. Trading the headline means trading the most unreliable version of the story.

How do you read a news headline safely? — risk-reward diagram
A risk-reward ratio of 1 to 2

What's your routine when a big headline hits?

How do you read a news headline safely? — candlestick anatomy diagram
The parts of a candlestick: wick, body, open and close
  • how you verify before acting
  • whether you trade first moves at all
  • the headline that burned you

The calendar tells you when headlines are due; that's the cheap edge.

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