Sunday, July 09, 2006
Learn online forex trading - Importance of Non-Farm Payrolls (NFP)
Learn Online Forex Trading - The importance of Non-Farm Payrolls (NFP)
What is Non Farm Payrolls -
Non Farm payrolls is a monthly produced report that represents total number of paid employees/workers in USA. However it doesn't factor in government employees, employees of non profit institutes and Farm employees.
Since this report is prepared by US Bureau of labour staistics, its authenticity is very high.
Whats its importance in onlearn Forex trading -
From online forex trading point of view, this report indicates the average earnings per person and hence tells about the current economic conditions in the country. This helps government policy officials to predict future economic situations. Needless to say, if the economic conditions are not strong, new policies will be made to make it better, which directly impacts USD strength.
So, thats the reason that in world of online forex trading the fundamental announcement of Non Farm Payrolls (NFP) is very significant and the market activity comes to standstill 6-8 hrs prior to the NFP announcement.
When is the announcement made -
The announcement is made on 1st Friday of every month
What happens after the announcement -
After the announcement, the market becomes very volatile. In typical 2-3 min, the market moves 100+ pips in all the currency pairs which involve USD.
What does this mean to a Currency Trader -
To us, it is a good time to make a trade and make money..Just flow with the direction of currency movement..HOWEVER, if the trade is incorrect, it can wipe out big portion of your account size. So, never ever ytrade without a stop loss.
Do I trade the NFP announcements -
I generally don't trade the NFPs as because of volatility involved the trading brokers cannot fulfill all the orders which also means that the order can be executed and the currency pair goes against your project direction the stop loss may not be honoured even if it is in place. This is a very scary situation and can put you in big losses.
So, thats all in todays session to learn online forex trading. Apologies for delay in putting new message as this week I was not in city.
Keep visiting this site to learn more about online forex trading.
What is Non Farm Payrolls -
Non Farm payrolls is a monthly produced report that represents total number of paid employees/workers in USA. However it doesn't factor in government employees, employees of non profit institutes and Farm employees.
Since this report is prepared by US Bureau of labour staistics, its authenticity is very high.
Whats its importance in onlearn Forex trading -
From online forex trading point of view, this report indicates the average earnings per person and hence tells about the current economic conditions in the country. This helps government policy officials to predict future economic situations. Needless to say, if the economic conditions are not strong, new policies will be made to make it better, which directly impacts USD strength.
So, thats the reason that in world of online forex trading the fundamental announcement of Non Farm Payrolls (NFP) is very significant and the market activity comes to standstill 6-8 hrs prior to the NFP announcement.
When is the announcement made -
The announcement is made on 1st Friday of every month
What happens after the announcement -
After the announcement, the market becomes very volatile. In typical 2-3 min, the market moves 100+ pips in all the currency pairs which involve USD.
What does this mean to a Currency Trader -
To us, it is a good time to make a trade and make money..Just flow with the direction of currency movement..HOWEVER, if the trade is incorrect, it can wipe out big portion of your account size. So, never ever ytrade without a stop loss.
Do I trade the NFP announcements -
I generally don't trade the NFPs as because of volatility involved the trading brokers cannot fulfill all the orders which also means that the order can be executed and the currency pair goes against your project direction the stop loss may not be honoured even if it is in place. This is a very scary situation and can put you in big losses.
So, thats all in todays session to learn online forex trading. Apologies for delay in putting new message as this week I was not in city.
Keep visiting this site to learn more about online forex trading.
