Here is how to trade the Non-farm Payrolls report (NFP)

Non farm Payrolls report

Hey trader!

Are you planning to trade the NFP tomorrow?

Well, you are at the right article… because I’m going to show you exactly what you need to do with your trading during the NFP report…

If you intend to trade the NFP for a quick gain

This is also true for any other fundamental release… If you keep trying to get a quick gain here and there during any fundamental release… your trading career will end pretty soon.

You read that right!

Sooner or later, you are going to wipe out your trading account! And I’m not even 99% sure, I’m 100% sure that it will happen, if you keep doing the same thing.

From all fundamental traders that I’ve met over the years, non of them are still trading fundamental releases, are even still trading.

Why?

Because its impossible to trade the news announcements for quick gains and get consistent results… you never know how is the market going to react…

  • Sometimes you get a bad figure, and the market moves up…
  • Some other times you get a very good figure, and the market moves down…
  • Sometimes you get just what the market expected, and market explotes…
  • Some other times you get a very different figure from what was expected, and the market stalls…

So if you want to trade the NFP for a quick gain, please don’t do it. Stop doing it.

Trading successfully is not about quick gains… its about consistent and steady gains, following a system. So if you are serious about trading, think about this alright?

Now, a few years ago, yes, it made sense to trade fundamental releases, because the market moved hundreds of pips in just a few minutes… But now the market has changed, and we need to adapt.

The trader most capable to adapt to the market conditions will reach his/her goals!

What about that ha?

If I have a trade open, what should I do before the NFP?

If you are a day trader, just close your trade. Its not worth the risk.

Look, you’ve been trading, following your system, making steady profits here and there… would you risk all that effort for just a quick gain?

I know I wouldn’t.

Holding your trade during the NFP, even if you took that trade following your system in the first place, but you are a day trader, it would also be like trying to get a quick gain…

If you are a swing trader, things are different.

Sometimes you need to hold your trades during important announcements and sometimes over the weekend!

Otherwise, your trades would never reach your take profit orders, which can take a few days to get there, and sometimes a few weeks!

But you still need rules… and the simpler the better!

So here are my rules, they are the same for news announcements and holding trades over the weekend:

  • For fast moving instruments (such as the GBPAUD, GBPJPY, EURAUD, etc) I need to have 80 – 100 pips on my favor in order to hold my trade.
  • For slow moving instruments (such as the AUDUSD, NZDUSD, USDJPY, etc) I need to have 60 – 80 pips on my favor in order to hold my trade.

That’s it!

You don’t need more rules than that!

Currency pairs I’m currently monitoring

EURUSD, its definitely moving towards parity, so I’m going to be looking for short opportunities here.

EURGBP, you already know what’s the market condition here, we still have some room left to get a good risk reward ratio.

GBPNZD, as long as it keeps trading below 2.0370 I’ll be looking for short opportunities.

Your turn

Are you going to trade the NFP?

What do you think about my rules to hold my trades during important announcements?

What currency pairs are you currently trading/monitoring?

Share your thoughts!

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Raul Lopez

I've been trading the markets for more than 15 years. I believe the best way to trade is by adapting to the market conditions. You can learn it too, join our community .

  • Varahala Babu

    hi raul…for AUD/CAD if it breaks 0.9600 support level it will trigger bearish condition or direct short signal to go breakout short trade ?

    • Raul Lopez

      Hello Varahala,

      The truth is that the AUDCAD is no really trading in a clear condition… I’d rather trade others, such as the ones I mentioned yesterday!

      Good luck!

  • Varahala Babu

    hi raul….NZD/USD & GBP/CAD are in bearish condition ? and bearish condition in GBP/NZD is still valid ?

    • Raul Lopez

      I wouldnt trade the NZDJPY, its not that clear… still fighting against GBPCAD short term charts, NZDUSD yep, agreed.

      And GBPNZD, we’ll have to wait a little longer now, as I mentioned above, it is now trading above 2.03, so we need to wait a little longer…

  • Varahala Babu

    hi raul…if we have a pending orders (buy stop or sell stop ) that have not triggered ….should we remove those pending orders before important news release or can we hold it to trigger in the time of news ?

    • Raul Lopez

      Hello Varahala, yep, that’s correct, you should remove those orders before important announcements… you dont want to get caught with larger spreads and volatility during important announcements…

  • hira

    1000 percent agree you , one win on nfp could have you gambling in no time at all …as for holding trades over the weekend im a regular for this and I also agree with your stops amounts mines usually 100 pips all the time lol but now I may give my plan a little tweak thanks raul …

    • Raul Lopez

      Totally agree with you Hira!

      Have a great weekend!

  • Eric Aroh

    Hi Raul,

    I do NOT trade any 3-level/star/etc., news announcement. Like your strategy, I simply close any open positions (that will be impacted upon) 1hr BEFORE the announcement.
    I am currently trading EURUSD, CADCHF, NZDUSD & GBPJPY. I intend to close three, and stick with CADCHF: I have a long term view of the gradual recovery of CAD against CHF (despite the recent interest rate disparity), and I am more than 100 pips in the green.

    Thanks,

    • Raul Lopez

      Wow! You’ve got a nice trade there Eric! Well done!

      Yep,the best thing to do is to stay away from those important announcements Eric!

      Congrats! We’ll see how the CADCHF behaves in the following days…

  • Pia

    Dear Raul, so I closed the EUR/GBP mini lot as I had 32 pips in my favour, and not 80 pips. Did I understand it correctly.
    Have a good day

    • Raul Lopez

      Hello Pia,

      Good to see you here!

      Congrats for those pips!!! Yep, you got that right…

      You can close your trade if you think it will never reach the 80 – 100 pip line beforehand, or wait for a few hours before the announcement, if you dont get those pips, you close your trade!

      Congrats again Pia!