Which annoucement should I stay away?

There are many traders told me that I never ever trade when the big news annoucements come out. But the question is which annoucement should I try to stay away? There are news annoucement everyday ,should I stay away from the market everyday?

If your risk management is in check, there really aren’t any to be afraid of.

But with that being said, any of the central bank interest announcements, like the ECB, BOJ, BOE, RBA. The most volatile is usually the NFP (which is this Friday morning EST depending on your location on the globe).

Those are usually the biggest market movers besides speeches by heads of said central banks. Speeches, or interviews can have an effect on markets as well. For instance, if Bernanke went on camera saying there was even an inkling of QE3 before the next FOMC meeting, you can bet the impact would be immediate. If after a speech by some overpaid monetary official you see the term “jawboning” bandied about, that’s what it meant. They are talking the market up or down.

Usually some wild swings in there that cause the unprepared some heartburn as the bigger market movers reassess their positions, and act accordingly.

You mean I can trade everyday ,if I risk 1% of my account in every trade?

Here’s what I do:

I just don’t trade around the time a news announcement is due. When a trade is on, I’ll always have a stop incase an unforseen piece of news hits the wires.

Minimizing losses and managing money always. What I find also is movement occurs not before the news but after. Before is a lot of whipsawing but people make up their minds after that news hits. That’s when it’s a safer trade.

I think that what they are probably trying to tell you is that you should stay away from all major news announcements. A lot of sites that report news rate them as ! !! or !!! depending on if they are a major report or not. So the idea would be not to place trades just before or after news comes out. You might say to yourself that you will wait 30 min on both sides of news, that is really up to you. Hopefully that helps answer your question, please let me know :slight_smile:

Non Farm Payrols, avoid that one

you could also see an opportunity here. Your saying stay away from the NFP, so why not place two orders either side of the current price, say 40 pips either side. That way when the market moves in the direction it wants to, one of your orders will get filled. Its safer then opening a trade prior to the NFP.

And yes, there will be times when you order gets filled and the market decides to drop in the other direction. That’s why money management is also important in a typical trade as this.