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News today Friday kicked my rear end!

 
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vfblane

News today Friday kicked my rear end!

I just got my but kicked while being setup to do extremely well this morning shorting the market....

And then boom!!! I didn't even have time to put in my stops when the news on the May jobs report came out and the hourly chart went hog-wild!

I lost over 900 pips in just minutes... Someone please tell me how to avoid that!!! Crap!

Fri, 06/03/2016 - 8:54am
 
chancellorsmail

Shorting the market ??? on a news trade ? That makes no sense. Instead you should be placing bracket trades cause who knows before hand which way it will go.

 
zuufa168

Always have stops in place.

For NFP day, I have some pop corns ready and sit by the sideline to watch the fireworks!

 
Gold-Backed

vfblane, did you know the Non-Farm Payroll news was being release this morning?

 
jiggerdigger

Oh dear, oh dear, oh dear. And in answer to your question about how to avoid it? The most reliable strategy is to stay out !!...

 
4xNorm

always check your forex factory news schedule at the beginning of every day and if you see non farm payroll on a friday at 8:30 am or FOMC statement on a weds at 2PM expect huge volatility. You never know which way it will go but you know it will go so be ready for a move. If it did not stop you out it often retraces to where it started and goes the direction that it was headed.

 
chancellorsmail

If you had watched Jeff's class at 8:00am til 9 this morning you would have seen him make over 300 pips. That is how you should have traded the market. Next time watch Jeff's class.

 
Sokha

Use bracket order so you always have a stop loss and a take profit when you enter a trade. It is better to make a mistake in a demo account than a live account. It is okay to loose 900 pips, but don't loose a lesson.

 
JT

Definitely agree with Sokha.

As they say, you can't catch a falling knife (sometimes you get lucky); stay out if you weren't ready for the catch. Just like volatile news, you might get lucky one time but is it really worth it?

If you weren't in the trade when it started moving 50 - 100 pips, don't try to catch it especially without a stop loss. Micro lot might work but it's not a good practice.

 
FXGold54

the first step to becoming a better forex trader is to check your news calendar. One should never, ever get surprised by a scheduled news release.

News trading is an art and I must take issue with Jigger, "since you miss 100% of the shots you don't take". I have been trading news for years and in fact have several friends who trade news exclusively. However, you must have a plan. To state with emphasis, "that the most reliable strategy is to stay out" precludes some of the best opportunities. Volatility is high and the market tells you which way to trade! Does anybody disagree that the USD weakened on the news?

On the more helpful side, there is a forum thread "trading the news" that has is full of good to great strategies for trading the news.

 
SamuelC

Morning vfblane,

Terrible way to start your day, eh? As folks have mentioned always check the news before you place a trade. Even a bracket trade, a buy stop above and sell stop below isn't necessarily a winning trade as there are times you'll get put in on spikes and then reverse to hit your stop, that has happened to me all too often and I generally avoid new event, having said that this morning was exceptionally good as it was one direction.

Most important you need to set your stop at the same time as you place your trade. In the Alveo menu go to Code-Variables-(then type in under the name column) default_stoploss (then under the value column set your stop loss). After it is set, you can move it in the chart to where you see fit.

Samuel

 
Sokha

For a short-term swing trade, I usually look at the forexfactory.com and do not trade news per my rule. I usually wait for at least 30 min after the news to place a trade if there's a setup, or exit trades before news event.

 
Patrick.green10

Not much else to add, it is an ouch moment but as they say you can learn from it. For me I tend to avoid NFP but if I was going to participate I would have tested a "trading news" strategy. Doesn't make you feel any better, but keep smiling you will recover.

 
vfblane

Thank you all for all the good response! You are all right about my ignorance! LOL
I got so caught up in making positive pips for the day, I totally forgot about those announcements! I almost lost my mind when the market took off without me placing my stops in, and I totally was not expecting the big announcement. And I have traded those announcements in the past! Wow, I have been away from this too long! I was running such a good streak of positive pips too!
Live and learn and this is a lesson I will remember for sure!
Thanks guys so much! I need all the help I can get!

 
mkrsampson

Just 10 minutes before NFP came out this morning I decided to remove a EUR/USD bullish entry order that I had in place for at least 5 hours prior. I canceled the order because price had dropped below the entry order stop. As a result, I missed out on a 200 pip move! I guess I can pat myself on the back for following my rules. However, it is a tough pill to swallow!

 
jiggerdigger

Thank you Allengoldatty you are right. I've been trading for 10 years and done very nicely over the last 7, including trading the news. In fact, in the last 3-4 weeks I've made over 1000 pips on Aussie news announcements alone. However, vfblane asked how he could avoid losing 900 pips in minutes and I stand by what I said which was, 'the most reliable strategy is to stay out'. Had he stayed out, he'd now be 900 pips to the good...

 
vfblane

You guys have been really helpful in my loss... sad face! But do you know what the crazy thing is, I learned to straddle-trade that NFP at MTI years ago, and just wasn't paying attention to the news! LOL

Oh well, good lesson learned, don't sneak around and trade while on vacation with the family!

Anybody relate?

 
LiveTradeLaugh

Another thing to note for NFP is that it is always the first Friday of the month... Easy to remember for me at least...

 
don_johnson

I tried to scalp starting an hour before the NFP (36,000 Jobs are you kidding me !) and it was like driving the wrong way on the Freeway , just try to stay alive was the strategy . But I want this type of experience even tho it is very humbling . The good news for me as that after being down 204 Pips this morning , I have managed to claw my way back to .057 Positibe and that is good enough for today . But if I had never lost that much , it would have been a good day had I started at 11 am instead of 7:30am CST !!

 
cfarii

I am new to this so I feel for you but at least you learned in a sim account and not real cash flow. That wouldve really sucked.

 
Elijah

in time you will learn to be ready when NFP hits and know what you are going to do and have a plan.
The reality is yes its best to stay out when you are new, but really many traders like our great instructor Jeff Crystal does trade the NFP and he made what 300 pips today?

 
BrionC

If you are ready for it attend Jeff's class on NTF and he usually explains his set up for trading it and trades it as the news hits.