On the first Friday of every month, it is not business as usual for most traders. An important report is released that day: The Nonfarm Payroll report. This report is a tally of nearly 80% of the work force in the United States. The purpose of the report itself is to assist economists in determining the current state of the U.S. economy. The results of the report itself can also predict the future state of the economy as well.

What this means for the Forex trader is that this is a day filled with extreme volatility on the major currency pairs. If one is not careful, they can find themselves on the wrong side of the movement and find their position wiped out in a matter of minutes.

When price moves dramatically, people watch. It can possess an opportunity for traders to make a large sum of money in a short period of time, thus the attraction. However, as fast as money can come, it can also go. A trader needs to be extremely careful when trading on this day.

Being a long-term trader myself, I am cautious of this day, but I’m not ultimately put off by it. While the intraday trader might sweat it out, I more of less look at the overall picture and plan my current trades accordingly.

But you, oh yes, you .You want to take a piece of this action. So allow me to present to you a method to trade the NFP.

Open up a chart on one of the majors, preferably either EURUSD or GBPUSD. GBPUSD generally has more pip movement, so depending on your money management you may appreciate that pair. Scale down to a 15-minute chart. Carefully watch when the actual news is released. You’ll know to the second when it occurs, as the price will start jumping up and down erratically.  Now here is the important part. Do not do a single thing. Just sit and wait for 15 minutes. When the first candle closes, it typically is a fairly wide candle. The wait continues. You want to keep an eye out for an inside bar. Our entry will occur at the breakout of that inside bar. Grab some pips and get the heck out.

If you plan to trade the NFP, broker selection is extremely important. Slippage can occur when a price moves to quickly. It’s extremely important to be sure you get in on the price you want to get in on. What good is it if you enter the trade and find that your order was filled after price made its move?

One of the FX Trading Network’s recommended brokers has a solution to this problem. Easy-Forex has implemented a feature in their platform that will literally allow you to freeze the price. With this feature you are ensured that you get the price you want in the time that price is “frozen”.  Take confidence in knowing there is a forex broker that has made it easier to ensure your trading system stays true to its rules.

Related posts:

1. A Successful Non-Farm Payroll Report Trade