|Forex Trading Non Farm Payrolls|
Nonfarm payrolls data and report reflect the health of the economy. More jobs available in the US means more wealth that can boost consumer spending and buy new and larger houses. Hence, when jobs start to disappear, opposite will happen and the economy will start to slow down.
How to Trade During Nonfarm Payrolls?
Others find it difficult to trade during nonfarm payrolls because of extreme volatility. Fixed Spread brokers have too much requotes, while those who have variable spreads have too much slippage. To protect the account from huge loss or margin call, use stoploss or open trades with low volume.
To trade during nonfarm payrolls, its better to put orders to capture the movement, do not place tight stops, because it will be easily hit.
To practice trading during Nonfarm Payrolls (NFP), try observing the market movement everytime the NFP was release,and open trades on demo account. Do not forget to check the news release and forecast before opening your trade.
If you got huge profit during nonfarm payrolls, do not forget to close the position or put trailing stop if its not in the direction of trend, because most of the time, after the news impact, the previous direction of trend still prevails.