Still trading the Non-farm payrolls report? Here is a better strategy…
Hey traders, hope everything is going we’ll…
I know, its been a while since the last time I wrote an article in my blog… I really appreciate the emails that some of you have sent…
I’m still trading and will be trading for the long haul… I intend to post more often in the coming weeks, with more analysis, recommendations, etc.
So please bear with me alright?
Dont tell me you are still trading the NFP report?
Earlier today, one of the most important fundamental announcements was released: The Non-farm Payrolls report.
It used to be the most important fundamental release, but I think todays it is second to the FOMC statement…
Do you agree with me?
Anyway… where I’m getting at is that, 7 – 9 years ago, it was well worth it to trade during these announcements… And that’s probable the reason there are still some traders that still try to trade them…
New traders might find a few articles on how to trade them, but some of these articles were re-writes from those years.
Believe me, todays its not worth it anymore. The market has changed, it doesn’t behave in the same way it did 7 – 9 years ago.
In fact, it behaves in a very different way today.
Back then, the market could move hundreds of pips in the same direction, in just a few minutes… Today, the market moves a few pips up, then a few pips down, and most of the time, it ends up around the same level it all started.
With a market like that, its very difficult to get consistent results.
You might get a few pips here or there, but in the long run, you are going to lose money.
Plus one little thing, you have the possibility to lose a great portion or all of your trading account…
So please, don’t trade the NFP anymore… that is if you want to trade for a living.
Here is a better strategy
I dont think there is a simpler, better, and more effective strategy to the one I’m about to share with you.
It might sound a little odd to you, but I can explain this strategy with just one word.
The most important word you’ll ever read about trading. Are you ready?
Trading successfully is about adapting to the market conditions.
- If you think the market is likely to continue its way up, try to go long.
- If you think the market is likely to continue its way down, try to go short.
- If you have no idea of what the market is doing, don’t trade. Call it a day. There will be more opportunities tomorrow, or the day after that, or the next week.
In fact, the second most important word you will ever heard about trading is this one:
Yep, you need to learn to wait for the right moment.
Trade sooner, and you’ll get stopped out… as simple as that.
What’s your take trader???
What currency pairs have you been trading in the last few weeks?
What kind of results have you had in this period?
Please share your thoughts.