Please! Stop trading the Non-farm Payrolls report
What is it with traders that still like to trade the NFP report?
I mean, a few years ago it would seem like the way to go, the market would move 100 or even 200 pips in just a few minutes…
I even knew a few traders that only traded the first friday of the month, that’s when the NFP report is released. But back then the market moved like crazy around those times.
And the strategy was very simple to follow:
A few minutes before the news announcement, traders would set a buy order, say 20 pips above market action, and a sell order 20 pips below t it. And wait for the market to trigger either one of them…
The market would trigger one of them, they’d sit back, relax and see the they account grow by the minute…
But now its different…
The market moves a few pips up, then it goes a few pips down… and at the end, it ends up where it all started…
So the traders that entered using the straddle entry end up with two trades (a long and a short) in the same currency pair, and both of them at a loss!
Here is today’s NFP impact on the EURUSD:
Not a pleasant experience let me tell you…
If you are real about trading
Let me tell you a secret, if you want to succeed in your trading, that’s not the way to go.
Put it like this, you want to make this happen because you want to: quit your regular job, trade from your favorite place on earth, you want to spend more time with your loved ones, etc.
Put your main goal into perspective.
And let me ask you: would you risk your main goal with a subjective strategy? Like trading important announcements?
To reach your goals you need an objective methodology, based on objective data.
What do I mean by an objective methodology?
- You need a way to define the currency pairs that have the greatest profit potential
- You need to find an entry system that you feel confident and comfortable with
- You need you manage your trades, how well you manage them will determine how well you’ll do on each one of them
- You need use any capital management technique
- You need to be mentally fit
Do you trade or know anyone who still trade the NFP report?
Have a great weekend and get some rest, because next week we need to trade some more! :D
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