NFP or “Non Farm Payroll” is a statement which is released the first Friday of a new month. The statement represents the number of jobs added, excluding farm employees, government employees, private household employees and employees of nonprofit organizations.
Why do we care about this number? We don’t
Our only concern is the TIMING of this event.
If you have not yet already noticed, here at Forexia we tend to stay away from the dumb money trading strategies, and yes, trading NFP based off the release of these numbers is a DUMB MONEY STRATEGY.
Do you really expect to have an edge trying to refresh your forex news calendar a half second before the news is released? Do realize that there are millions of other retail traders waiting to trade based on the release of the same numbers?
So, how then do you trade NFP successfully?
Structure will tell all, and the timing of the event will give you an upper hand when predicting the move before it happens.
Why would they give us the EXACT timing that these high impact , volatile events will happen? Do they not want it to be a surprise?
The factor of surprise is ever present in the market, wether they give us the time of the event or not.
However, the reason I believe they give us the exact timing of these “volatile” events, is to entice extra liquidity into the market at that exact time. After all, the market moves only when there is liquidity to move it. Liquidity must make up both side of the market in order to move, if everyone wants to sell but no one wants to buy, there is no market.
The exact timing is given to us in order to inject the needed retail liquidity into the market at that time.
FX News Calendar: https://www.forexfactory.com
Check out our past NFP analysis!