With so much news all session long, the volatility made for a near impossible scenario to make a profit. The best approach would have been to take the day off. I saw a nice entry which required a small initial stop loss. The trade went positive, but retraced to a slightly negative position just after an hour, before going positive one more time. After moving the stop loss to plus one pip in advance of the major US news, the position is subsequently closed out. Price then goes vertically down to our Targets 1 and 2 without us.
Due to our habit of not trading NFP Fridays, I was looking for a final trade for the week and it wasn’t there.
My mentor who trades in the tens of billions of dollars per trade, when I asked him about trading NFP and other major economic news events said to me, “you wouldn’t stand if front of an oncoming locomotive, would you?” He went on to say that he takes his traders out for something to eat and comes back when the market has settled down. If he sees something he likes then, he trades it, if not, he doesn’t trade. Very wise words…what was I thinking?
The UK session last night seemed to be one of those sessions when locomotives were coming full steam ahead every hour.
Be very careful if you trade tomorrow.