Trading the News

We have GBP PPI Input out at 8:30 GMT and also US Non-Farm Payrolls at 12:30 GMT.  So be cautious in pairs involving these currencies – especially ones involving the USD.   I don’t recommend having “bet” positions placed before the numbers come out – especially the Non-Farm Payroll (NFP) report.  But I do recommend being involved in trading after the number has been released.  But wait at least 5 minutes or more, 15 is even better.  You will likely still catch most of the move which may develop.

If you want a specific strategy for trading the NFP report you can find one near the bottom of this list which is a list of my published articles with Investopedia/Forbes Digital: http://www.investopedia.com/contributors/default.aspx?id=335

There is no reason to gamble on which way the numbers will come out and how the market will react.  Most small traders could be wiped out by this news event if it comes out with unexpected numbers.  The 50/50 toss of up of being right is not worth it.  Plus, nothing moves in a straight line and finding liquidity can be a problem, so even what appears to be a profitable trade one second may not be the next.  If you are an individual trader it is best to wait for the market to churn after the announcement and then jump in when it is has chosen direction.

Just be aware of those figures when trading today/tomorrow (depending on where you are).

Cheers,

~Cory Mitchell, CMT

Chief Market Strategist

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