Saturday, 20 September 2014

FOMC, NFP, ECB - The Dangerous Three

The most dangerous three acronyms you need to watch for are:

Why?  During these news releases you can anticipate great volatility.  If you're in a trade, exit at least an hour before.  On the day of any of these events you might as well make it a holiday.
Of course if you are a news trader then this is your money making time.  Personally I find these events too painful to trade.  Sometimes there is a lot of waiting around for nothing.  Other times you get false breakouts.  Slippage.  In the past while living in Canada I could never get up early enough to trade these events with a conscious and clear mind.  Just too damn early for me. I don't function at peak capacity.   Now that I'm in Thailand I just can't be bothered as I am making consistent profit with my proven strategies.  But who knows, maybe one day I'll work on a News Trading Strategy that I like.