In future, the DAX takes the crown. Silver also has brutal swings. In currency, for me GBPUSD is the most moved.
Printable View
In future, the DAX takes the crown. Silver also has brutal swings. In currency, for me GBPUSD is the most moved.
Okay, so in future the reaction is also strong, I guess with the NFP as well?
What I don’t understand is how there are people who keep getting into news like NFP without a stop or a plan. It’s like jumping into a storm with a backpack full of stones. It’s not courage, it’s financial suicide. There’s ways to operate news, but you have to know what you do. Enter to see what’s going on is the shortest strategy toward the empty account. If you don’t have a clear methodology for high-impact events, you’d better not come near.
In my experience, GBPJPY also has quite violent reactions when some news comes out from the UK or Japan. It’s a couple that moves a lot even without news, so imagine when there are strong catalysts. Of course if you’re not used to managing volatility, this kind of pair will get you out of the operation in seconds. It’s not for novices or nervouss. But if you know what you’re doing, it can give you very profitable moves.
Many times beginner traders become obsessed with looking for the most volatile pair. As if more movement were equal to more profits. Nothing further from reality. The more movement, more risk, more errors, more stress. The key is not to find the pair that jumps the most with news, but the one that fits your strategy, your risk management and your personality. Most don’t need a crazy market, it needs consistency.
Once I entered EURUSD just when the NFP came out. The spread multiplied by five, I was run with sliding and the operation lasted less than ten seconds. I lost more in commissions than in the operation itself. Since then I learned to stay out for the first few minutes after publication. Sometimes the best entry is the one you don’t make. You have to be patient, that the market isn’t going anywhere.
Gold is also of care. With certain news you can move more than 100 pips in minutes. If you do not have a millimeter control of the lot, it is easy to melt the account with a single error. Yes, for those who know how to read the macroeconomic context and the feeling of market, gold can be a mine (never better said
And what do you tell me about NASDAQ? When some inflation data comes out in the U.S., that index goes completely crazy. 200-point sails in a matter of seconds. Brutal. The problem is that not all brokers run fast either. So as good as your input, if the platform stays frozen, it doesn’t matter. You have to have tools at the level of the asset you operate.
I once operated the DAX right at a press conference at the ECB. I don’t know what was worse, whether the movement or the scare I took. I thought the chart was broken. It took me out at -60 points and then climbed 200. I never went in without knowing exactly what was to be announced and when. It’s not just about seeing the calendar, it’s about understanding what the market is waiting for. The DAX doesn’t forgive you.
For me, the couple who react most with news is USDJPY. Especially with interest rate decisions or statements from the Bank of Japan. It is noticeable that the market is ultra sensitive to any comment. The good thing is that being a very liquid pair, movements are seen coming if you know how to read the flow. It is not like others that nail you with crazy candles. Here the reaction is fast, yes, but cleaner.