News Trader Success - the Correct Way of Trading the News

I hear a lot of traders tell me that the news Traders. When I ask them what they mean they tell me that they are waiting out the economic publication, and then they trade in the direction of the publication.
I'll use a hypothetical scenario to make my point clear.
Say you have a Retail Sales edition published in Great Britain in 2 minutes. market expectations for growth of 5%. If the released number is higher than expected Traditional News Trader will buy GBP, and if the lower he / she will sell the GBP. While this may work in some cases and in many other cases not.
The reason is that a multitude of forces affect the price of a couple and economic announcements are just one of the forces, but not only with force. Other variables are the prevailing trend and the general mood 'on the market.

It's no wonder that so many news Traders burnt.
Today I will tell you the correct way of trading news. I want you to read carefully the following statement:
correct way to trade the news that the trade reaction to the news rather than news itself.
Instead, if you buy GBP UK retail sales go better than expected, to buy GBP, if you see that the GBP is growing at better figures. If the GBP is the stalling on the better news then you should sell it instead.
The best example is the EURUSD moved to 14 September 2010. We had ZEW economic sentiment coming from the European Union. This came out worse than expected. Then we had the Retail Sales in the U.S. come out much better than expected. combination of these two economic releases should have sent EURUSD breaking. But instead of EURUSD is stalling, trading within 20 pips range. This was my signal to go long.
guess what happened later. EURUSD was fired for 200 pips in 3 hours.
So there you have it. I traded a reaction to the news rather than news itself.