Seems like was suitable. Lately traded NZD cash rate. The prediction was that rates will be cut from 2.25 to 2.0. So I sold the rumor couple minutes prior to the launch. I also put pending buy order in the event the rates would be left the exact same and price would go up. So just prior to the launch, the price went down by 30 pips in my favour. Just to find out it was fake breakout prior to the launch and subsequently price went up by 100 pips in one minute. My pending buy order of course was not implemented and my stop-loss for market order was also ignored. Tried to manually shut the order but it had been rejected a lot of times untill the losses were 100 pips in which it didn't matter anymore. Lost 50% of my account in a matter of seconds. But what amazes me is that the rates were really cut but the NZD went up like a motherfucker. I'm sorry but where the fuck is logic in all of this? Since when the currency goes up when the rates are cut??
Starting to think that trading following the news release will make more sense. The Same as MoneyZilla said. However, the problem is that I didn't observe any patterns and logic behind maket behavior just following the news release. Let's say after down enormous impulse, the market will be retracing for couple hours into the initial price prior to the news. But sometimes it will keep going down and won't retrace. It is like 50/50. Is there some egy trading just after the news? Perhaps there are a number of signs from price action that could tell us in which the price could go after the news release?
Anyway, any suggestions for the following interest rate decision trade? Lol