Tag: market volatility

Looooong Weekend

I like the first Friday of every month, not because how the market reacts to the Non-Farm Payrolls announcement, but because I take the day off (Actually, I did write this post yesterday and scheduled for today).

It’s very difficult to trade the most important announcements, the market goes crazy making wild swings, and most of the time the market ends up where it all started. I think this is the kind of risks that traders should avoid, we just can’t afford it. Picture this scenario, you been trading all month long, following your strategy but somehow you decide to trade the NFP announcement, and all you’ve made during the previous month vanishes. I just don’t like the idea.

Even if we knew the actual figure, it would still be difficult, because sometimes the market moves against the fundamentals, good data, and the market goes down, bad data and the market goes up, very bad figure and the market stalls, etc.

This is why I take the first Friday of each month off. What do you think? Is it worth it?

See you next Monday! Have a nice Weekend.
Raul Lopez

Fundamental, market volatility, NFP

Geithner Talk…

To tell you the truth, I didn’t think the market would react to Geithner’s speech. But it did. A guess investor were not convinced about the new bank plan (or probably they didn’t get NEW information, which was what they were after). The fact is that the market did react to this.

What concerns us ‘Forex Traders’ is that this could trigger periods of volatility, the type of volatility that is difficult to trade: undefined ranges. This is the case for most major currency pairs. Right now its very difficult to trade based in the daily charts, because currency pairs are trading in a pretty tight range, and if you use Stop Loss orders (and everyone should use them, specially during this periods of volatility), they will get triggered.

I suggest you to trade based in the 4H or even based in the 1H charts, take small profits, but also try to find trades with small SL orders.

Anyway, be careful these days.

Good luck!

RL

geithner, market volatility