Forex Tips

Avoid trading around major news releases and Non-Farm Employment Change is a Big One!

When I first asked my mentor a number of years ago, about trading around major news events, he told me, “not to stand in front of an oncoming locomotive”.  He trades in the tens of billions of dollars.  He then told me that he and his traders go for breakfast during the news and come back when things have settled down.

When I further asked him about the huge spikes that frequently occur in advance of major news events and if the dealers were stopping everyone out, he told me, “no, it’s the institutions pulling their orders in advance of the news”.  This creates a lack of liquidity and makes for some horrible fills for those that try and trade it.

If the Biggest Traders in the world are not trading these events… why do so many retail traders try to pick up  some quick pips???

Enjoy the weekend.

Great trading!

Michael

The GBP gave another very familiar setup overnight.  If trading could only be this easy everyday…  This is why it’s best to concentrate only on the majors in my opinion and get to know the nuances of their movement.  Exotic pairs trade differently from the majors and there are plenty of pips to be made only trading the majors – which are also much safer, more liquid and less erratic.

Tomorrow is Non Farm Employment Change also known as NFP Friday – best to avoid trading.

Enjoy the weekend.

Questions are welcomed.

Great trading!

Michael

Happy Independence Day to America.

The GBP moved down nicely overnight.  Some trades are a lot easier than others.

The CAD pair weakens with the move up in Oil.  The Canadian dollar strengthens on higher oil prices causing the US dollar to weaken in this pair.  Tighter ranges this week until Thursday with the holidays in Canada yesterday and the US tomorrow.

Questions are always welcome.

Happy Independence Day tomorrow to American viewers.

Great trading to everyone!

Michael

The positive news from the EU Economic Summit created a lot of movement in the markets…and left me without a trade by the time the UK session opened.

Canada will have its Canada Day holiday on Monday and the US will celebrate Independence Day on Wednesday.

Have a wonderful weekend!

Michael

“It’s never a good idea to chase a trade” – is what my mentor always told me.  Be patient…wait for the pullback or find another pair still setting up and trade it.  He only takes trades of 3:1 Reward to Risk ratio or greater.  Plan your trades in advance, be systematic and wait for your setup to occur…never be impulsive with trading!

Great trading!

Michael