News Trade
Trade the spike — or stay out and let the news settle first.
News trading is binary: huge wins when you're right, huge losses when you're wrong. Two viable styles — straddle the announcement with pending orders, or wait 5-10 minutes for the initial spike to settle and trade the second move.
How to identify it
- Mark high-impact red-folder events on Forex Factory.
- Note the time, pair, and which currency it affects.
- Have a plan before the release: bias / no-bias / fade.
Trading rules
- Wider SL (2-3x normal) because of news volatility.
- Smaller position size (0.5% max).
- Skip if the release is unclear or your bias is weak.
- Use limit orders if straddling; market orders only for second-move trades.
Common pitfalls
- Slippage and gapped spreads eating your SL placement.
- Trading the first 30 seconds — too much noise.
- Holding after the move stalls because 'it might continue'.
When to use it
NFP, FOMC, CPI, ECB. Skip lower-impact events unless you have a tested edge.
Best pairs
XAUUSD, EURUSD, GBPUSD
Best session
NY morning (most US data)
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