Search:

Would you like to contribute to this site? Currency Trading Menu Submit an Article Submit a Tip Place your Ad Add URL Currency Trading Questions? Contact Us  Currency Trading   Online Currency Trading   Learn Currency Trading   Trading Foreign Currency   Types Of Currency Trading   Currency Exchange Rates   Foreign Exchange Rates   Currency Converters   Currency Trading Charts   Currency Trading Tips   Currency Trades   Currency Trader   Currency Exchange   Currency Software   Foreign Exchange   Exchange Rates   Forex Trading   Forex Currency   Online Forex   Forex Currency Trading   Forex Trading Courses   Forex Trading Tools   Types Of Forex Trading

Return To Currency Trading Article Archive   Forex Trading - Non-Farm Payroll Trading (Are You Insane?) By Nathan Pennington I understand the allure of trading these wild news events. I used to dream of it myself. It sounds like easy money. Just trade for short periods of time. Make a great return on your investment. It sounds so good! Then the reality of the issue settles in. Most brokers widen the spread during these times. For example, I know one broker who widened the spread to around 200 pips. Often times it\'s increased to 50 pips. The "guaranteed" 2 pips spread doesn\'t exist during times of high volatility. With spreads like that you\'re guaranteed to lose. You simply can\'t trade with a spread like that, and the brokers know it. That\'s why they have the spread set up like that. But just for the sake of argument, let\'s say you found a broker who would let you trade with a regular sized spread during the non-farm payroll release time. The most common way to trade the news is to straddle it. In other words you place a buy and a sell in the market. Whichever way the market goes first, it will touch that order first. Then the other order is removed from the market, and you work to make profit on your open order. Well, the market will often whiplash. You may think you guessed wrong and exit the trade at a loss. Then the market will turn and go in the direction you were trading. Or, you\'ll hang on (thinking that the market is just faking), but it\'s not. And you\'ll end up with a huge loss. In truth, news trading is just like playing craps. It\'s gambling. Do you want to learn more about how I trade? I have just completed my brand new guide, "Forex Trading - What Finally Worked For Me". Download it free here: Forex Trading Nathan Pennington is a forex trader and the author of Winning Forex Trading -THE Definitive Guide keywords: forex trading | news trading | non-farm payroll Foreign Currency Trader

Get your Currency Trading questions answered... Subscribe to our Currency Trading Newsletter FREE! Your First Name: Your Email Address: Enter above security code

Home  |   Currency Trading Blog  |   Ask the Currency Trading Expert  |   Currency Trading Archive  |   Currency Trading RSS Feeds  |   Advertise  |   Sitemap