Hi everyone,
I’m Mark
I didn’t see that big drop coming this morning on the Dollar
Whoever did see it made money. Wasn’t me.
At the beginning of every month there is an economic announcement in America called the Non-Farm Payrolls. This news event is always a catalyst for a drastic price fluctuation. No one really knows how it’s going to turn out. Long-term traders such as myself usually close out of any positions related to the Dollar before it. Since it’s a news event, it won’t necessarily respect any trend in place. The NFP announcement was this morning.
Here’s a link to the calendar I use to stay in the know about upcoming events. My own rule of thumb is to just stay out of a currency when there is a high volatility event. Most of them are stuff like Rate Decisions, Payroll events, or sometimes speeches from important figures in the financial sector.
looking at first Thursday and Friday, of the month on a shorter time frame( below H4) should be an indicator that you should never trade during news, On the other hand if you are a long term trader it does not worry us much. IF the trend continues, we keep our positions, if it changes, we close our positions and go on the look out for new entry points.
Long Term Eur/Usd is the way to go.
Check out the trend
Grix: Making trading easier
