Another highland term, ‘The Shoot’ represents the most commonly used technique used by day traders for trading an economic event, which is to take a position ahead of an event and stick to it through the directional trend and through the event itself.
Most often used for small and medium sized events or occasionally with large events where the data, forecasters and economists have some form of consensus, ‘The Shoot’ is equivalent to taking aim and firing at a grouse in mid air. ‘The Shoot’ is possibly the most profitable technique used by traders, requiring the most skill and also carrying the extra risk of trading through the event itself. However, the reward is far higher if correct.
A Key aspect of this method is technical positioning, small to medium sized events tend to have a lower directional impact on a market so a traders technical positioning becomes highly important to profit margins.
Want a closer look at the charts? Check out the links below:
Before the Event Technicals & Fundamentals:
The Days major Events:
UK Retail sales:
Gov. BOE Speech
Exiting the Trade and Forecast v’s Actual: