Currency news trading

There is a lot of currency news trading going on these day's, this market is very sensitive to economic data one headline can send a currency straight up or down in minutes,that's why stops are so important.And hopefully your Forex broker honors them.One of the most watched announcements is the non farm payroll numbers,this report comes out once a month .This report is to measure the number of jobs gained or lost over the previous month.A lot of traders take a beating on this announcement,banks and market makers can pull there bid and ask prices from a currency pair instantly ,and your stop will be hit before you know what has happened,they can see all the stop prices and hit them if they want to ,and they do .If you are a into news trading I'm sure most of you have been taking out on a piece of economic news,and then the price went in the direction of your position once you were stopped out,it happens all the time.There is big gains made by the lucky trader during this news release but the wise trader will let this happen without participating,it's only one move out of the whole month ,and it's on a Friday,losing on a Friday does not make you feel good the rest of the weekend.If you are determined to trade this event,don't get in the trade just before they release it,wait till it comes out and watch the reaction,and only trade after you have a clear signal,generally the move will be in the direction of the overall trend.

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