ichi360

I wasn’t sure how to explain properly “How to trade NFP releases” but then suddenly I found this one of my previously posted chart in my charts folder. This pretty much explains everything.

I’ve always advocated for a Post-NFP Trading Opportunity, if you notice in the chart the USDJPY reached to its ultimate high during the NFP release on Firday, the 7th August 2009 when it touched 97.6x and we never saw the pair going to that range again since more than 4 months now. From here you’ve two options:

1. Trade during the NFP release and cash (highly risky) 100, 150 or may be 200 to 300 pips and if you’re on the wrong side of the Trade then just lose the same number of pips

2. Wait for the NFP mania to finish and let the Trend establish properly and then trade for 1000, 2000 or 3000 pips. But if you’re a Swing Trader like me, you may want to get in and out of your trades many times within that 3000 pips journey and maximize your profits.

There is another way of trading NFP with success and probably with minimum risk. Start earlier, lets say a week before NFP, be in profit and make sure you’ve chosen a good Top or Bottom of a Short-term trend, once you’re in a reasonable profit, just set your Stop-Loss at +1 pip of your Entry price and turn on your Cruise Control from there. If the price did not like your Trend Bias during the NFP hours, your trade will be closed with 1 pip of profit but if you and NFP had the same Trend Bias you’ll be cashing all those lovely pips.

I’m currently in several trades which I’m planning to keep open during the NFP Release (but will book profits before NFP with half number of lots to make sure I dont lose all the pips if NFP trend goes against me) with +1 pip strategy, here is what I have:

1. Short on USDJPY, EURJPY, GBPJPY, AUDJPY, NZDJPY, CHFJPY, CADJPY
2. Short on GBPUSD
3. Short on AUDUSD and NZDUSD
4. Long on USDCHF, USDCAD, USDSEK, USDNOK and USDZAR
5. Few CFD Trades such as Citigroup, Microsoft, Oracle, Intel, Dell, Ebay, Amazon, Barclays, HSBC
6. Planning on QQQQ

As usual, good luck with your NFP Trading, act smart and keep making pips …