17. Non-Farm Payrolls and tips

Dear fellow traders,

It is almost that time of the month again... the NFP is this Friday!! And since we are all traders, I would like to tell you something about this and perhaps give you some good tips as well.

This Friday at 14:30(+2 gmt) the new numbers will be announced. As every time, the markets response will be very volatile and quick. The market is currently is a phase without direction in the forex sector. In the indexes there is a lot of movement. 

Because of this, the market could face a lot of traders not knowing which side to choose. Besides that, a lot of the “bigger” companies are currently holding cash. This means that when the NFP numbers are out (and be ready because they know them first), the markets will response very volatile and quick. 

Before entering a trade, make a plan for yourself. Look at the markets 5 minutes before the release. Place orders just above and below the highs because this are the ones that needs to be broken and once broken it will push through.

Hold your trade. Many traders quit their trades because of a correction back and they do not want to lose their money (just as me). But just take a look at all the important announcements and dates... the market will go one way, make a "small" correction backwards (and now you take your profit because you think it is over) and then continues the way it has broken. Most times it makes around 3 or 4 candles (around 2 hours) and then the currency or index will be flat. This is the moment you quit, even though the market will in most cases continues the next day in the same way.

Why do I exit my trade then? Because of a pullback. A pullback needs to be done, everywhere! A healthy markets goes up and down, and needs to release some pressure sometimes. New highs and lows will be made around this level.

Follow my next post for what you NEED to do to recognize new directions where to add new orders.

Have a nice trading week ahead.

BusinezzTime ©

Vince Roestenburg

Ps. our prediction is around 212K! (looking at the chart below)

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