Forex Trading: Trading Major News Events
How to go about trading major news events such as an ECB Press Conference, or the Non Farms Payroll report is a question that almost every trader asks themselves at some point. In my years of experience I think I’ve tried a handful of ways to attack them which eventually lead me to this conclusion. The best way to trade these types of major news events is simply to not trade them at all. I’m fully aware that there are plenty of traders out there who have systems or strategies to attack these events but personally I find it very hard to be consistent when the market is in such a reactionary state. To me, when the market is like this it’s just more like gambling than trading. If I want to gamble I’ll take my personal play around money to the craps table at the casino instead of putting my hard earned money at stake in the markets. At least in the casino I expect to lose and get a little entertainment doing so.
Too many traders want to be involved in these types of moves because of the rush it brings. They see the big candles, they see the momentum, they see the excitement and therefore they want in. But let me ask you this. As a trader who treats their trading like a business. Is it your job to be involved for the feeling in brings, or to make profit? I think the latter, and because of that we should only want to involve ourselves in high probability trading opportunities. After all what’s the worst that can happen if you’re not involved…You don’t make money…but you also can’t lose money either and remember the number one rule is “Don’t go broke.”
This is a very exciting week for me personally. Why women’s team has their Cross Country Atlantic Regional Championship race this Saturday and I have my 2nd attempt at a marathon on Sunday. I did this same marathon 2 years ago and wasn’t pleased with the results so I’m giving it one more chance. If I were to relate it to trading I would say that last time, I entered too many trades in the beginning which left me over exposed towards the end. This year I’m going in with a true plan and I’m 100% set on following it throughout the entire race. Have a good weekend traders.
Plan your trade, trade your plan.