How to Trade News Events – The Non-Farm Payroll Report
Hi Traders,
If you are new to the world of Currencies you may have heard the term NFP mentioned several times over on the main-stream channels such as CNBC, Bloomberg, and Reuters. Nirav Shah has been Trading the Markets now for well over 16 years of his professional career and is bringing live analysis to your trading screens this Friday.
The Forex Markets are dominated by News and you can make some huge profits from trading these News Events.
In a particular month, there are over 14 major news events that you can take advantage of, and guess what? You don’t have to sit in front of your screen all day, these trades you simply SET AND FORGET.
At Platinum, we have the latest advanced algorithm and Live Trading Floor that can predict where to Buy and Sell Currencies on this event. Would you like to try the algorithm out this Friday? Signup below to install the algorithm and why not test it for yourself. Bear in mind there are some rules to follow, but all will be clear once our trader has taken you through The Platinum NFP Strategy.
Here at Platinum Trading Academy, we have several Institutional Traders that have been trading for well over a decade. They bring the institutional research required to enable you to trade News Events such as these with pin-point accuracy. On this absolutely free crash course, we are about teaching you how to become an NFP EXPERT in just 60 minutes.
What will you learn?
A) When to take the trade?
B) How to prepare for the trade just 5 minutes before the event
C) How you can guarantee the perfect risk/reward
D) Learn how to trade post-event and get on the NFP Trend
E) Understand why the first Friday of every month could be very profitable.
TRADING THE NON-FARM PAYROLL 101
What is Non-Farm Payroll?
The NFP is released by the US Department of Labour. The report is usually published on the first Friday of every month. The data in the report is an indicator of the employment situation in the US. It measures the change in the number of newly employed people in the US, excluding workers in the farming industry.
A number which is higher than the market forecast is considered Bullish for the US Dollar and lower than the forecast is Bearish.
Event Details:
Non-Farm Payroll Date and Time
Time of the event: November 3rd, 2017 13:30 GMT
Why is NFP Known as the Biggest Market Moving Event in the World of currencies?
Every Forex Market Trader will come across this event at some point in time in their trading career, and this is one of those events that can move currency pairs and cross currency pairs over 100 pips in less than 60 seconds, a trader can literally make a large amount of money in just a matter of minutes.
If you are new to Forex, you need to understand that the release of the Non-Farm Payroll reports every month is a monumental market-moving event. The Progress of the US Economy is measured by 12 major Fundamental Events and the Non-Farm payroll is a leading indicator that measures the job-creation aspect of the economy. The NFP report provides information about the change in the number of employed people during the previous month, excluding the farming industry. Job creation is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity.
What happened Previously?
Platinum Analysts believe that more than likely the October jobs report should be more positive than September, the major reasons is that the hurricanes in the previous month were a direct influencer of a loss of 33k jobs. In a nutshell, the October report should compensate for the loss in September. The wages in the month of September increased by 0.5% which is quite substantial, and if we see another jump, this could strengthen the case for a rate hike, given that higher paychecks impact core inflation.
Market sentiments
Fundamentals is a big part of trading and sentiment is built on market trends.
Even though the US took a hit in the last employment data, the bigger picture has not changed and we still have a robust labour market with full employment in the US Economy. The US Economy maintained a pace of growth in the third quarter, increasing 3.0% annual rate as reported by the Commerce Department. Platinum Trading Analysts expect a 305k gain in the job data for October.
Do trade the NFP with caution.
How to trade the Euro on NFP
The expected number for October in the NFP report to be released this Friday is 311K. The deviation figure to trade the NFP is +40/-40.
Let me explain what this means:
The Bear Trade
If the actual number on NFP is above 351K compared to the estimated 311K, sell the EUR/USD with 25 pips stop loss.
The Bull Trade
If the actual number on NFP is below 271K compared to the estimated 311K, buy the EUR/USD with 25 pips stop loss.
How to trade the Yen on NFP
The expected number is 311k. The deviation to trade the Non-Farm Payroll is +40/-40.
The Bull Trade
If the NFP number is above 351K, buy the USD/JPY with 25 pips stop loss.
The Bear Trade
If NFP number is below 271K, sell the USD/JPY with 25 pips stop loss.
Important Note: Always keep an eye on the market news and feeds in order to trade the event with proficiency. For Platinum Members, it’s as easy as logging on and having the “Institutional News Feed” open.
The Platinum News Trading Strategy
How to Trade the NFP using the Platinum Trading System:
Always keep the Institutional News feed open.
Make sure you have your eyes on the clock.
As soon as the news event comes out there will be a spike. The objective is simple: Go long or short in the 4th buying or selling zone of the day with 20 pips stop loss. We are looking for 30 pips reversal from this with a 20 pip stop loss.
Regardless of the result of the trade, this will be the only trade on the system for NFP.
Never do revenge trading.
Time for the trade to be taken is between 13:30 and 13:45. The trade is invalid after this time.
You must be there live to take the trade on the 4th trading zone.
Points to be noted when trading during NFP days:
Be careful of being in trades an hour before and after NFP.
Trade the 2nd level zones and trade the range prior to 12:00.
Do not trade USD/CHF on NFP days.
To trade the News Event, trade the 4th buying or selling zones on the actual News Event with a 25 pip stop loss and 30 pips take profit.
Trading on NFP days is a VERY high risk, and many traders get chopped up trying to call the turn.
Do not worry too much if you take the trade or don’t take the trade, there will be plenty more coming our way.
Forex Strategy for Day Trading the NFP Report – How to Trade the NFP using the Platinum Trading System:
The Platinum News Trading Strategy
Always keep the Institutional News Feed open.
Make sure you have your eyes on the clock.
As soon as the news event comes out there will be a spike. The objective is simple: Go long or short in the 4th buying or selling zone of the day with 20 pips stop loss. We are looking for 30 pips reversal from this with a 20 pip stop loss.
Regardless of the result of the trade, this will be the only trade on the system for NFP.
Never do revenge trading.
Time for the trade to be taken is between 13:30 and 13:45. The trade is invalid after this time.
You must be there live to take the trade on the 4th trading zone.
Points to be noted when trading during NFP days:
Be careful of being in trades an hour before and after NFP.
Trade the 2nd level zones and trade the range prior to 12:00.
Do not trade USD/CHF on NFP days.
To trade the news event, trade 4th buying or selling zones on the actual news event with a 25 pip stop loss and 30 pips take profit.
Trading on NFP days is a VERY high risk, and many traders get chopped up trying to call the turn.
Do not worry too much if you take the trade or don’t take the trade, there will be plenty more coming our way.
The Platinum Formula:
Perfect Fundamentals + Perfect Technical Analysis + Perfect Logic + Perfect Risk Management = Perfect Trade
THE PLATINUM WAY
At Platinum, we teach all individuals from different walks of life to become a full-time trader or create a secondary revenue stream by trading part-time. We trade in an Institutional Way by letting the market come to us and being patient. Using Platinum’s Trading system you can take many Pips out of the market. We can ensure using this style of trading your trading will make a turnaround as you will become much more consistent.
If you want to trade like the professionals do, making consistently profitable returns from your trading, get in touch with us and we will demonstrate live exactly how we approach the markets.
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Hopefully, you have enjoyed today’s article. Thanks for reading!
Have a fantastic day!
Nisha Patel
Live from the Platinum Trading Floor.