How can I Trade Non Farm Payroll (NFP) with confidence and consistency?
In NFP lies opportunity, allows us to share with you some information about NFP forex, and how to trade the upcoming event.
Let us demonstrate how Platinum Members take advantage of this event every single month, resulting in hundreds of pips from a simple strategy, aptly named: “The News Trading Strategy”
What is Non Farm Payroll?
The NFP is a report, released by the US Department of Labour. The report is usually published on the first Friday of every month. The data in this report is an indicator of the employment situation in the US. It measures the change in the number of newly-employed people in the United States (excluding workers in the farming industry) since the previous month, hence the name: Non-Farm Payroll
A number which is higher than the market-forecast is considered Bullish for the US Dollar, and lower than the forecast is Bearish.
Upcoming Non Farm Payroll Date and Time: October 6th, 2017 13:30 GMT
Why is NFP a Trading Event?
The release of the Non Farm Payroll report is a trading event that can move currency pairs, such as the Euro (EUR/USD) up to 100 pips in a single minute.
If you are new to Forex, then you need to understand that the release of the Non-Farm Payroll reports every month is a 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.
Job creation is an important leading indicator of consumer spending, which in turn accounts for a majority of overall economic activity.
Most Professional Traders are waiting for the event this week. The Dollar has been taking some heavy punishment over the last few weeks, and this could be the turning point for it moving forward.
Platinum Members look forward to trading the Euro on the 4th Buy or Sell zone on NFP for stop hunts, and trend reversals, with 20 pip stop-losses.
What happened Previously?
According to the report released in September, for the month of August, the Non-Farm Employment Change produced worse figures than expected, and that didn’t materially change expectations for the Economy. The Labour Market had come from a good result for July, which reported the creation of 209K jobs, later being revised to 189K. The September report came out at 156K, against a forecast of 180K.
Fundamentals is a big part of trading, and Sentiment is built on market trends.
The last NFP forex report was a soft one, and it didn’t really change the overall picture, which is the fact that both the Economy and Labour Market are in good shape. However, the NFP report to-be-released tomorrow will definitely have its numbers affected by the aftermath of Hurricane Irma, and this particular data will unlikely be a very decisive indicator on the developments of the US Economy. The impact of the storm will probably make the use of this report very limited, and there should be no implications to policy or odds of a possible rate hike by the FED in December.
Do trade the non farm payroll dates NFP with caution.
How To Trade NFP As A Forex Trader
How to Trade the Euro on NFP
The expected number for April in the NFP report to be released this Friday is 88K. The deviation figure to trade the Non-Farm Payroll is +35/-35.
Let me explain what this means:
The Bear Trade
If the actual number on NFP is above 123K, compared to the estimated 88K, sell the EUR/USD with 25 pips stop loss.
The Bull Trade
If the actual number on NFP is below 53K, compared to the estimated 88K, buy the EUR/USD with 25 pips stop loss.
How to Trade the Yen on NFP
The expected number is 88k. The deviation figure to trade the Non-Farm Payroll is +35/-35.
The Bull Trade
If the NFP number is above 123K, buy the USD/JPY with 25 pips stop loss.
The Bear Trade
If NFP number is below 53K, 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 would be as easy as logging on and having the Institutional News Feed open.
Forex Strategy for Day Trading the NFP Report – 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 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
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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!
Live from the Platinum Trading Floor.