What are the most volatile news stories to trade?

[miguelgta]

What are the most volatile news to trade?

[tommor]

US Non-Farm Payrolls and US Federal Reserve Bank interest rate announcements can impact all currencies. Similar news releases from the countries of the specific currencies will also have an impact on that particular pair. Some smaller currencies are also impacted by larger neighbours’ news announcements - CHF is dependent on the EUR, NZD on AUD, CAD on USD - but only up to a point.

[SchmaltzHerring]

To trade?

Many counterparty brokers who win when you lose really LOVE their customers to do this, and strongly encourage it. Does that actually tell you what you need to know?

None is the best answer. Unless you’re a very experienced expert at this (who wouldn’t be asking) you should avoid trading the news. It’s essentially trading without a stop-loss, because it’s the one time that a broker may not be able to honour your stop-loss.

More retail traders’ accounts are probably lost through this than through any other form of “accidents”.

There’s a reason that so many prop-firms disallow news trading. If I were funding people to trade, I would’t allow it, either. Would you, honestly, @miguelgta ?

This will help you (“he said optimistically”!!) -

News trading yes?

all of them - they make a fortune from customers doing it, so they understandably encourage it no - i avoid it, i don’t trade for about 5 minutes before it and usually 10-30 minutes after it (depending on whether it has much effect on the markets) there are quite often spikes in both directions, all in a few seconds, which can take out your stop-loss in one direction, then hit another trade and take out that one’s stop-loss, too - it’s fraught with danger, however you do it, it seems to me l…

[Jimmy_Thucydides]

@SchmaltzHerring

you should avoid trading the news. It’s essentially trading without a stop-loss, because it’s the one time that a broker may not be able to honour your stop-loss.

He’s probably envisaging some kind of pseudo-arbitrage, aiming to profit whichever way the market moves.

Some people learn only the hard way (I mention it not disparagingly but only because his earlier threads suggest that, and that he’s maybe interested only in replies based on his initial beliefs - however mistaken). If this is your intention, @miguelgta , I really strongly suggest two practical and helpful things:

1. Read in detail the post linked to above, and -
2. Try this many times on demo accounts before even dreaming of trying it with money (and even then only with a tiny account, since so many people find that their account disappears the first or second time they try it for real!).