Today was a fun day, as has been for the last 5 NFP announcements in our trading room. We have hit all 5 of the last 5 with great profitable days. One thing to keep in mind when trading NFP is that it can be a very dangerous day for your trading account if you are new at trading. These announcements come fast and aggressive and can destroy and confuse the emotions of even the experienced trader. So how do we avoid our emotional problems when we get into a trade in NFP and then the big moves begin? Well the most important thing to keep in mind is you must have a good PLAN. If you do not have a plan of action to get in and to get our then its best to take the day off and find something else to day because unlike many jobs this job can cost you money if you do not understand how to handle these aggressive moves on NFP.
One of the great aspects of trading is most days or exciting and no two days are exactly the same, this kind of excitement is fantastic for those who do not like boring jobs, one thing to keep in mind is that we must not trade to stay enthused. Ok now I will get to my trade….
Today’s trade was on the USDCAD we took a short in the trading room since I sometimes open the room especially for NFP. We entered short right before news and exited within 5 minutes with 70 pips. Why did I take this trade? Well for one the trendline was ripe for a nice move lower and I felt it was a good risk reward trade.
Here is a short video I made, if you think it is helpful please like the video.