1.) Day Trading Non Farm Payrolls:  NFP is a very big day to many traders. I know some news traders who basically wait just for NFP and make this their only trade for the week.  Think about it as the biggest news day in the month, you get many traders who are glued to their screens like a horse gambler glued to his or her horse. I can say that it's not just day traders ho wait for this day, you will find money managers using this day to get an idea which direction to take their monthly trade direction in. Given that it is the start of the month you will find many money managers and swing traders eager to put on a new trade after their squared their positions from the month earlier. So what does this do for us? Well it tells us there will be a massive amount of liquidity as well as stops to get run.

2.)  Know how to trade the news:     When trading non farm payrolls we need to make sure we understand that there is no clear method to day trade. You may get a good number and wonder why the market has not moved higher, you may also get a bad number and wonder the market did not move lower.  The fact of the matter is that most big money traders understand this, and it is not a easy as one may think. Big money can often make more money going against retailers than going along with the obvious, for this reason trading news is a lot more complex.

3.) Technical Break Down of Non Farm Payroll, remember the fundamental news such as unemployment rate, hourly earnings, and the  payrolls of all the US Paid workers that are not government employees, nonprofits, or farm employees is what this news day is about.  So with all these news bits e have to understand ho to weigh all these factors and which elements are more important than others. We also use technical analysis, however I will save this for another article. If you would like to learn more about our trading education room check out our trading specials!

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