Forecast City forecasts are based on technical principles. It is, therefore, not possible to make good scientific predictions for some charts on days when important economic news, that influences the main market trend, is released.
There are 5 kinds of important economic news which can produce very severe swings in the market. The days in which this kind of news is released are called risky days and we should refrain from opening new trades on such days.
NFP (Non-Farm Payroll change) is the most influential economic news. This news reports the changes in the total number of workers of the US non-farm sections and shows the increase or decrease of the economic power of this economic super power in the past month. NFP is released at 08:30 a.m. EST (Eastern Standard Time)(New York time) on the first Friday of each month.
Professional and great traders avoid opening new trades during the final trading hours of the Thursday before the NFP news is released. As the time for releasing the NFP news nears, the swings of the market become lower and lower and finally a big bang shoots the price all around when the NFP news is announced.
Forecast City does not present any prediction on NFP days and strongly recommends paying serious attention to our safety belts:
- We are more careful about our trades in the week before an NFP announcement.
- We decrease the amount of investment in new trades during the last days of a week when NFP news is going to be announced.
- As great traders, we also refrain from making new trades from the mid hours of the New York market on Thursday.
- We put the stop loss point of the trades, which are in the profit way, in a suitable place of profit area. So the trade will close with profit if the price reverses.
- We close trades with paltry profit or loss in the hours near to NFP announcement. Tomorrow is another day.
- If the price is shaken very severely after the news announcement, we will trade more cautiously on Monday and open trades with less money.