How To Trade Non-Farm Payroll | Platinum Trading Institute - PowerPoint PPT Presentation

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Title: How To Trade Non-Farm Payroll | Platinum Trading Institute


1
FOREX TRADING
  • How To Trade Non-Farm Payroll

2
What is Non-Farm Payroll News Release?
  • The Non-Farm Payroll is released by the US
    Department of Labour.
  • The Non-Farm Payroll report is usually published
    on the first Friday of every month.
  • The data in the Non-Farm Payroll report is an
    indicator of the employment situation in the US.
  • It measures the change in the number of newly
    employed people in the US, excluding workers in
    the farming industry.

3
Why is Non-Farm Payroll a trading event?
  • The release of Non-Farm Payroll report is a
    trading event that can move the currency pairs
    such as the Euro (EUR/USD) up to 100 pips in a
    minute.
  • If you are new to Forex, you need to understand
    that the release of the Non-Farm Payroll reports
    every month is a market moving event. The
    Progress of the US Economy is measured by 12
    major fundamental events and the Non-Farm payroll
    is a leading indicator that measures the job
    creation aspect of the economy.
  • The NFP report provides information about the
    change in the number of employed people during
    the previous month, excluding the farming
    industry. Job creation is an important leading
    indicator of consumer spending, which accounts
    for a majority of overall economic activity.

4
How to Trade Non-Farm Payroll using the Platinum
Trading System
  • Always keep the Institutional News feed open.
  • Make sure you have your eyes on the clock.
  • As soon as the news event comes out there will be
    a spike. The objective is simple Go long or
    short in the 4th buying or selling zone of the
    day with 20 pips stop loss. We are looking for 30
    pips reversal from this with a 20 pip stop loss.
  • Regardless of the result of the trade, this will
    be the only trade on the system for NFP.
  • Never do revenge trading.
  • Time for the trade to be taken is between 1330
    and 1345. The trade is invalid after this time.
  • You must be there live to take the trade on a
    4th trading zone.

5
Points to be noted when trading during NFP days
  • Be careful of being in trades an hour before and
    after NFP.
  • Trade the 2nd level zones and trade the range
    prior to 1200.
  • Do not trade USD/CHF on NFP days.
  • To trade the news event, trade 4th buying or
    selling zones on the actual news event with a 25
    pip stop loss and 30 pips take profit.
  • Trading on Non-Farm Payroll days is a VERY high
    risk and many traders get chopped up trying to
    call the turn.
  • Do not worry too much if you take the trade or
    dont take the trade, there will be plenty more
    coming our way.

6
THANK YOU.
  • If you are a new trader and would like to learn
    how to trade, then sign up today to our 2-day
    free Foundation to Forex Trading Course.
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