Should beginners trade the news?
High-impact releases move prices fast, widen spreads and can fill stops far from their level. Some experienced traders trade them; plenty more stay flat.
What would you tell a beginner about trading around releases like CPI or non-farm payrolls?
- trade it, watch it or ignore it at first?
- what surprised you the first time you had a position open during a release?
- how long do you wait after a release before trading normally again?
Background: How to trade the news: a step-by-step strategy guide
News moves currency pairs faster than anything else in the market. Here is how to trade news releases with a plan, not a prayer — including the releases that matter, the risks around the release minute, and three strategies that respect both.
What is the best news to trade in forex?
The releases that consistently move currencies are US CPI, non-farm payrolls and Fed decisions for the dollar, CPI and Bank of England decisions for sterling, ECB decisions for the euro, and Bank of Japan decisions for the yen.
Should beginners trade the news?
Most beginners are better off reducing positions before high-impact releases and learning to trade the aftermath first. The release minute itself has widened spreads and fast reversals that punish inexperience.
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