Platinum’s Forex Trading System – How to Trade News Events

Good Afternoon Platinum Subscribers,

There are many ways in which traders can approach main news events. Platinum Traders have a couple options 1 being our extreme zone strategy, here is a recent example of this on the recent FOMC announcement yesterday a quick and simple trade which any trader at any level of experience could have executed.

The focus of today’s article is a Forex Trading Strategy which is unique to Platinum which utilizes Platinum Trading Algorithm to perfection!

Forex Trading Strategy Using Platinum’s Algorithm

The idea of today’s blog article, actually surged after one of our subscribers challenged the Platinum Trading Algorithm as he said he saw no real value on it. Gladly he was given to me so I could show him where he was wrong. I decided to show him only one of the ways you can use this system to extract money (pips) from the FX Market.

Gladly he was given to me so I could show him where he was wrong. I decided to show him only one of the ways you can use this system to extract money (pips) from the FX Market.

Platinum’s Forex Trading System

Before I move any forward, let me give you some facts about the Platinum Trading Algorithm which I will just refer to from this point on as “Trading System”:

  • A System which cost over £500k to be developed

  • It costs Platinum Trading Academy £150k annually and clients have it for free for life

  • The System provides you with the same Daily Power Zones used by banks

  • 18 methods of analysis combined to produce the most powerful algorithm available in the Retail Market

  • Works on 12 currency pairs, Gold, Oil, S&P500 and Dow Jones

Examples of how the system can be used

Now that we know these facts, let’s look at that one example I used to show how, using the trading system alone, you could end up with profits every month.

It is important to note that we are talking about a strategy to be used for quick profits. You are not to hold any trades for more than 30 points in profit.

How to Apply the Forex Trading Strategy to News Events

Buy or Sell any 3rd zone of the day in the Trading System regardless of any analysis

  1. Stop loss will be 20 pips
  2. Target will be 20-30 pips
  3. You can stay overnight in a trade if the zone is hit from 19:00GMT onwards
  4. Only trade this on the 7 major currency pairs
  5. Never trade from 14:00GMT on FED rate decision days or NFP days
  6. Don’t mess about with the trade. Allow it to either go to target or hit the stop

Having said all that, let me ask you a question?

Where can you go and find someone who tells you with confidence, buy or sell a market regardless of analysis? What I am showing you today is just one of the ways you can use this Trading System. I don’t think people realise the power they are given when they actually have access to a trading tool such as the Platinum Algorithm. Let’s not forget that we also have the End of Day Strategy, Market Cap Strategy and Extreme Zone Strategy using this system.

The results of our challenge only using Platinum’s Trading System

 

Please watch this video and see this Forex Trading Strategy in action. Let me share with you the results of our challenge. We only used the system and nothing else and the knowledge of someone who uses it daily:

We only used the system and the knowledge of someone who uses it daily:

The period used was from 07/06/2017 to 05/07/2017, so roughly a month.

A total of 34 third zones of the day in the system came into play:

Using 20 pips stop and 20 pips target. So 1 to 1 risk to reward

  • 7 on EUR/USD = 4 winners, 3 losers and 1 breakeven = Total 40 pips
  • 4 on GBP/USD = 4 winners = Total 80 pips
  • 3 on USD/JPY = 2 winners and 1 loser = Total 20 pips
  • 2 on USD/CHF = 1 winner and 1 loser = Total 0 pips
  • 4 on AUD/USD = 3 winners and 1 loser = Total 40 pips
  • 4 on NZD/USD = 3 winners and 1 loser = Total 40 pips
  • 10 on USD/CAD = 8 winners and 2 losers = Total 120 pips

The total for this one month was 340 pips net profit

I totally understand that many people will think this is not impressive and that you have others out there promising you can make 4000 pips a month and blah blah blah… Be my guest!! As a trader, I can guarantee the market will not offer you enough opportunities to make that amount of points in a single month.

Stop wasting time looking at this kind of trash you get on the internet and accept that trading is a business and as such, you need to learn your craft and have a Forex Trading strategy in place to reach your goals. It is past time you separate yourself from the crowd.

Trading Efficiently and consistently

What I want to emphasize here is that this was purely based on a total mechanic method using one of the zones that the trading system calculates for us. Blind entries with no analysis. Just to prove that the system in itself is efficient if properly used.

Now imagine what you can do if you learn how to properly use it and know all the tricks of the game. You will become unstoppable!!

Now let’s share with you 2 charts so you can have a visual example of what I mean:

Chart 1 – Aussie (AUD/USD)

In this chart, you have the 4 trades which triggered during the mentioned period on Aussie. As you can clearly see, exactly as I wrote in the results, I now prove to you visually. No hiding from us here at Platinum Trading Academy.

Chart 2 – Loonie (USD/CAD)

In this example, you can see 3 of the 8 winners that the Loonie presented to us.

After seeing these examples, you have got to wonder if there are ways in which you can actually make more than 20 pips per trade since most of the times the market moves past the 20 pips target. The answer to that is yes you can. If you learn to properly use this trading system and apply the Platinum Methodology to its full potential, I can guarantee you will become a monster in trading.

Don’t believe me? Then be the next to challenge me. Let me show you how you can do it. I dare you to challenge me. Myself and my team will blow your mind!

Your move now!

The Platinum Formula

Perfect Fundamentals + Perfect Technical Analysis + Perfect Logic + Perfect Risk Management = Perfect Trade

The Platinum Way

At Platinum, we teach all individuals from different walks of life to become a full-time trader or create a secondary revenue stream by trading part-time.

Learn how to trade Forex the Institutional Way. We educate our clients to think like Institutional Traders and not like Retail Traders. Trading in the same style is not only more profitable but also far less stressful for the retail trader. We want you to make your trading decisions based on confirmed entry points and be confident with each trade that you make.

Watch Trades of the Week Videos in our video gallery. Subscribe to Platinum’s Forex Newsletter

Wishing you all the best.

Earnings Disclaimer:

The information you’ll find in this article is for educational purpose only. We make no promise or guarantee of income or earnings. Use your best judgement and perform due diligence before using the information in this article. Your success is still up to you. Nothing in this article is intended to be professional, legal, financial and/or accounting advice. Always seek competent advice from professionals in these matters. If you break the city or other local laws, we will not be held liable for any damages you incur.

How to Trade the FOMC Announcement

The Federal Reserve will hold arguably its most important policy meeting in years on Sept. 19-20, with markets waiting to see if the central bank raises rates yet again and/or begins to unwind its massive balance sheet.

Platinum Analysts are not expecting the FED to increase rates this Wednesday but on the contrary, they will be looking at pulling the trigger on the shrinking balance sheet.

Platinum Analysts will be observing the 10-Year Treasury Note very closely.

What is a ’10-Year Treasury Note’

A 10-year treasury note is a debt obligation issued by the United States government that matures in 10 years. A 10-year Treasury note pays interest at a fixed rate once every six months and pays the face value to the holder at maturity. An advantage of investing in 10-year Treasury notes and other federal government securities is that the interest payments are exempt from state and local income tax. However, they are still taxable at the federal level.

BREAKING DOWN ’10-Year Treasury Note’

The U.S. Treasury also sells notes with two, three, five and seven-year terms. All of these notes, along with Treasury bills and bonds, can be purchased directly from the U.S. government through the Treasury Direct website via competitive or non-competitive bidding with a minimum purchase of $100 and in $100 increments. They can also be purchased indirectly through a bank or broker. Investors can choose to hold Treasury notes until maturity or sell early. There is no minimum ownership term.

The Money hours for the 20th of September 2017 starts at 19:00 GMT and the events to trade are down below:

U.S. FOMC Economic Projections:

As traders, you will know that the FOMC raised the interest rates by 25 basis points to 1.25% just as the markets expected.

A Quick overview of the Fomc Economic Projections are as follows:

  • Fed Expects GDP Growth of 2.1% to 2.2% in 2017
  • Unemployment from 4.2% to 4.3%
  • Inflation range would be between 1.6% to 1.7%

If we see any changes since June in these projections which are very doubtful as most of these have been revised to the downside, we could see some massive swings in the Dollar.

U.S. FOMC Statement

The Federal Open Market Committee releases a total of eight statements every year. In the year 2017 after the zirp ending in December 2015, the Statement has minor changes and as a note of observance every time. In addition to providing details about the outcome of the members’ vote on interest rate and other policy measures, the statement also includes a commentary on the economic situation that influenced the members’ decision. More importantly, the statement discusses the country’s economic outlook and provides clues on the direction of interest rates in the future. Platinum analysts are expecting No Change in the Statement. If there is a surprise rate hike the market could see over 300 pip moves in the 6 majors.

U.S. FOMC Federal Funds Rate

There have been various rumors about another rate hike before the end of the year but platinum analysts do not think the time will be now. The one thing that the FED will be looking at very closely is to start reducing the US $4.5 trillion portfolios as early as possible. Till now most of you will be accustomed to the term Quantitative easing this is called quantitative tightening. As a trader, all you should be looking at is when will the next interest rate hike be and watch out for that slippery comment from the FED!

Now that you are aware of the importance of the event let’s move on to how to trade the event:

WEDNESDAY the 20th of September: Markets will WHIPSAW: Use The Platinum FOMC Trading Strategy

THURSDAY the 21st of September: Markets will continue the trends watch out for the 38.2% Fib Level

FRIDAY the 22nd of September: Cease trading at 15:00 and only aim at buying and selling rallies at the end of the range.

Example of how Platinum Traders Approached the previous FOMC

 

With the FOMC you either have a hawkish or a dovish sentiment. A hawkish sentiment means a positive net effect for that currency i.e US dollar. A dovish sentiment meaning the opposite. Regardless of whether it is hawkish or dovish, we are able to trade it thanks to our extreme zone strategy using the platinum algorithm. The Algorithm predicts the extreme ranges for a currency pair on any given trading day. We use this to our advantage to take perfect reversals of news releases.

Strategies for Trading the FOMC

This is a risk event and we suggest you use no more than 1% of your risk capital overall of your trading account for your personal trading purposes.

Important Pointers for traders:

  • Know the ranges of your currency pairs.
  • Know the critical times of when to stop trading
  • Do not revenge trade
  • Do not trade GBP/USD between 16:00 and 17:00.
  • If you are new to trading take out 50% of your balance to protect impulsive behavior and risk.

Strategies to be used

Here are three scenarios for the market place:

Strategies to be used

Here are three scenarios for the market place:

A) The FED does not increase the interest rate by 0.25% but promises an increase in the coming months. If the above scenario happens which in our opinion we could see an initial spike down on euro, cable and vice versa for the swissy and yen and then we could see trend continuation for the next three days.

B) If the FED increases the interest rate then we shall see the dollar charge and a move of over 200-300 pips on the euro and sterling but this is not anticipated by Platinum Analysts. This would be a scenario which could be a massive payday for all traders as we will break outside ranges and have trend continuation.

If this happens then you should be ready to be 100% Bullish and only look for long entries on Pairs such as Swiss, Yen and Short entries on Euro and Aussie.

C) The FED promises another hike in December then we will see will see a whipsaw in the market and not considerable change in market conditions. Expect an initial spike on Dollar pairs such as CHF, Yen, Cad and Gold no more than 60 pips and then a reversal don’t let this surprise you as this is just profit taking.

Book the Consultation to get the exact Trade Plays

1. Step by step guide from a senior trader on how to approach and trade these events

2. learn the exact trading levels Platinum Traders will be looking out for

3. See how our Trading system supports us on making correct entry points to the market

Learn how to Trade GBP/USD

The British Pound has made a major bullish move post-Bank of England’s Rate Decision.Platinum Analysts have a bullish view on the British Pound and will be looking at Buying Dips. Do not forget the two most critical hours not to trade cable are 7:00 to 8:00 GMT and 16:00 to 17:00 GMT. Since the start of the week we have seen a minor retracement Cable for our premium levels on cable please contact us for a Premium Cable Trading Session.

How to become a profitable Trader.

By any chance, if you are a new trader and would like to learn how to trade, then sign up today to our 2-day free Foundation to Forex Trading Course. We have just introduced this as in the last month we have had a lot of inquiries on learning how to trade the financial markets. We can get you on the successful path of becoming a Financial Trader.

Hopefully, you have enjoyed today’s article as much as I have enjoyed writing it and have gained great knowledge about trading and how to trade.

See you soon!

The Platinum Formula

Perfect Fundamentals + Perfect Technical Analysis + Perfect Logic + Perfect Risk Management = Perfect Trade

The Platinum Way

At Platinum, we teach all individuals from different walks of life to become a full-time trader or create a secondary revenue stream by trading part-time.

Learn how to trade Forex the Institutional Way. We educate our clients to think like Institutional Traders and not like Retail Traders. Trading in the same style is not only more profitable but also far less stressful for the retail trader. We want you to make your trading decisions based on confirmed entry points and be confident with each trade that you make.

Watch Trades of the Week Videos in our video gallery. Subscribe to Platinum’s Forex Newsletter

Wishing you all the best.

Earnings Disclaimer:

The information you’ll find in this article is for educational purpose only. We make no promise or guarantee of income or earnings. Use your best judgement and perform due diligence before using the information in this article. Your success is still up to you. Nothing in this article is intended to be professional, legal, financial and/or accounting advice. Always seek competent advice from professionals in these matters. If you break the city or other local laws, we will not be held liable for any damages you incur.

Why Interest Rates Matter in Forex Trading

Hello Traders,

Thank you for your lovely comments on the last week Forex blog post on How To Trade Forex Cross Pairs. It’s a pleasure to get some lovely feedback. Welcome to another week of quality information about trading the Financial Markets.

This week on Thursday, 14th September 2017, the Bank of England will once more conclude another

Monetary Policy meeting. As usual, this kind of fundamental events can cause a lot of volatility in the FX Market and moves of 100’s of points are not uncommon.

In our last Interest Rate Blog, we provided key trading levels and strategies for How to trade the Federal Reserve Interest Rate Decision. The opportunities presented in this blog generated our readers many pips.

Traders and investors look at those trying to anticipate market movements to make profits.

Whether you are a trader or not, a Central Bank Rate decision is directly linked to your life as it may affect the country’s economy, employment and inflation hence may affect your day to day life and activities.

I am sure that if you are reading this text, you probably know all that and the question you want an answer for is:

How to Benefit from the Interest Rate Decision?

If you are planning to trade this event, you have to take some factors into consideration first. The first one of them is to have a clear picture of what happened in the last Central Bank Rate decision.

Let’s recap

The members of the BOE committee kept interest rates unchanged again at a record low and cut its forecasts for growth and wages as it warned that Brexit was weighing on the economy. The discouraging perspective for the next two years further reduced speculation that the Central Bank was close to its first rate increase in a decade. However, BOE’s Governor Mark Carney said of the possibility of one hike in 2018 which was still under the radar. He mentioned the uncertainty about Brexit (especially lower investment by companies) meant the economy could not grow as fast as before without pushing inflation higher. Therefore, just some improvement in growth could bring forward a rate hike.

How To Trade The Rate Decision?

Before even considering any trade, remember the Platinum Methodology states that every single trade needs to have the following:

Logical View + Fundamental View + Technical View + Perfect Stop Loss + Perfect Entry and Perfect Target.

(This way you can be 100% that you have a solid reason for taking the trade)

Fundamental View

In its August meeting, the BOE made a decision to keep rates on hold and that disappointed the markets which had priced in a possible increase based on more hawkish members in the votes of the committee from the June meeting.

For this week’s meeting, the Monetary Policy Committee will be returning to its full nine-member board as the new Deputy Governor, Sir Dave Ramsden, attends his first meeting. Platinum Analysts believe the rate is going to be kept unchanged again especially after the replacement of Kristin Forbes by the more dovish Silvana Tenreyro, if the new member Ramsden also joins the doves, it will be rather difficult to forecast a rate hike in the next 2 years. This could act negatively for Sterling’s medium-term outlook. Brexit negotiations will likely play a big part influencing the currency’s path for the rest of this year and over the next.

Logical View

The market is pricing in a possible hawkish approach from the Central Bank. What would be the implications of the 3 possible scenarios in the GBP/USD?

  1. If they keep the interest rate the same, we could see the normal knee jerk reaction in price and the market comes back to where it started and no much change happens. The medium term bullish momentum stays in place.
  2. If they cut the interest rate the to 25 BP, hell will come to earth and Cable will sink at least 300 points
  3. If they hike the interest rate to 25 BP, (very unlikely) GBP/USD will have no other direction but up and $1.35 could be reached within a few hours and the pair would enter in a long-term Bullish mode.

The extent to which the market is priced for a possible QE response from BOE is harder to calibrate but we doubt this would come as a total surprise given the terms upon which the Bank of England has spoken about the need to respond to the current period of heightened uncertainty. Nonetheless, a rate cut accompanied by a QE response would be initially negative for the currency as GBP re-joins the ranks of the funding currencies (JPY and EUR) but without having the luxury of a current account surplus. However, we are aware of the recent trend where central banks have delivered further QE but their currencies have subsequently rallied.

Technical View

From the weekly chart below we can see Cable is moving upwards within a Symmetrical Channel Pattern. Since we have had a technical breakout of $1.3145, we will have an opportunity to long the pair on a BPC. The medium-term momentum has changed from Bearish to Bullish and we will favour long positions on a pull back.

The long-term bias is Bullish until we are able to close below 1.28 for now.

We also see an opportunity to Short this pair @ $1.3500 and this is a level institutions are definitely watching and a flow of selling orders is to be expected in this area as this huge round number should pour a bucket of cold water in the Bulls’ plans.

How to Trade the GBP/USD

A) Long the GBP/USD @ 1.3145 or the nearest zone with 40 pips stop loss and a target of 1.3480

B) Short the GBP/USD @ 1.3500 or the nearest zone with 40 pips stop loss and a target of 1.3150

C) Look for 3rd Zones on the System and go for 20/20 reversal trades on the day of the decision

D) Place alerts on the major and minor support areas and match them with the zones and go for 20/20 trades

Whatever happens and whatever the outcome, DO NOT revenge trade.

The Platinum Formula

Perfect Fundamentals + Perfect Technical Analysis + Perfect Logic + Perfect Risk Management = Perfect Trade

The Platinum Way

At Platinum, we teach all individuals from different walks of life to become a full-time trader or create a secondary revenue stream by trading part-time.

Learn how to trade Forex the Institutional Way. We educate our clients to think like Institutional Traders and not like Retail Traders. Trading in the same style is not only more profitable but also far less stressful for the retail trader. We want you to make your trading decisions based on confirmed entry points and be confident with each trade that you make.

Watch Trades of the Week Videos in our video gallery. Subscribe to Platinum’s Forex Newsletter

Wishing you all the best.

Earnings Disclaimer:

The information you’ll find in this article is for educational purpose only. We make no promise or guarantee of income or earnings. Use your best judgement and perform due diligence before using the information in this article. Your success is still up to you. Nothing in this article is intended to be professional, legal, financial and/or accounting advice. Always seek competent advice from professionals in these matters. If you break the city or other local laws, we will not be held liable for any damages you incur.

How to trade Forex Cross Pairs

We may have a beautiful opportunity taking shape on a cross pair. Let’s talk about how to trade the GBP/JPY. For the Great British Pound and the Japanese Yen cross pair, our clients take advantage of our Banker Trades Strategy. Most retail traders shy away from trading the cross pairings. The spreads are often wider and they can be more volatile than the majors making it harder to predict price movements. We have reduced this level of uncertainty by bringing you what we have called Banker trades.

A banker trades involves trading in the cross pairings i.e. currencies not paired against the USD. As we always look for confirmed entry points in the market, we trade the cross pairings when the opportunity arises. This is a confirmed entry point. Take in the region of 1200 PIPs per year with such entry points. If you would like to learn more about this Forex trading strategy click here.

Fundamentals – How to trade the GBP/JPY cross pair

Now back to the subject, for Sterling, we just need to refer to our blog article Trading the Great British Pound and will have an idea of what to expect from that particular currency.

For the Japanese Yen, which is the other part of this cross pair, we all know, or at least should know, the important role of that currency. The Yen, as it is often referred to in the trading world, is a safe haven currency. That means traders and investors have a belief that this particular currency is stable enough to keep its value if compared to other currencies in times of uncertainty, inflation and any other forms of crisis.

The North Korea impact

Talking about uncertain times, we could easily classify “right now” as this kind of environment. You must have heard countless times in the news about the volatility between the United States and North Korea. There is a possible conflict on the horizon between these two countries. As sad as it may be, there are two ways you can look at this. One you can do nothing and lament about the world, its wars and current situation or two, you can actually use that knowledge to make some extra profits.

Since North Korea has shown no intention to hear anyone insisting in its continued nuclear program and with Trump in power in the US, that conflict is looming. Plus the US Dollar which is so weak and with no hopes for any strength to pick up in the near future, Selling Sterling and Buying the Japanese Yen would be a good proposal.

That is exactly what Platinum Traders plan to do if and when this trade comes into play.

Technical Analysis – GBP/JPY Trade Opportunity

From the chart on the left we can see GBP/JPY has rejected the top of the Ascending Triangle and has now breached the ascending trending line. All Platinum traders know exactly what to do on a breakout like that. BPC on it!! We will favour short positions on a pull back to 144.20 as another retest of the Trending Line. As for the fundamentals, the Japanese Yen is very Bullish due to its safe haven

status and the Pound is entering a possible reversal Head & Shoulders against the US Dollar.

We believe that both the pull backs on the Yen and Cable will be the perfect match with this level and a perfect trade could potentially come into play.

How to trade the GBP/JPY

 

The entry happens to be also a 38.2% Fibonacci retracement if measured from the high of 147.75 to the low of 139.25. We suggest a stop loss of 100 pips on this trade set up with a potential gain of 800 pips. That is an astonishing 8/1 reward to risk.

We have also outlined the various major supply and demand areas on the chart which you should place alerts on.

A) Short the GBP/JPY @ 144.20 or the nearest zone with 100 pips stop loss and a target of 135.85

Key Buy and Sell Levels:

  • 114.20 – Long Term Selling level
  • 138.85 – Short Term Buying Level
  • 135.85 – Long Term Buying Level
  • 132.90 – Short Term Buying Level – Platinum’s Premium Fib level
  • 129.25 – Short Term Buying Level
  • 123.25 – Long Term Buying Level

The Platinum Formula

Perfect Fundamentals + Perfect Technical Analysis + Perfect Logic + Perfect Risk Management = Perfect Trade

The Platinum Way

At Platinum, we teach all individuals from different walks of life to become a full-time trader or create a secondary revenue stream by trading part-time.

Learn how to trade Forex the Institutional Way. We educate our clients to think like Institutional Traders and not like Retail Traders. Trading in the same style is not only more profitable but also far less stressful for the retail trader. We want you to make your trading decisions based on confirmed entry points and be confident with each trade that you make.

Watch Trades of the Week Videos in our video gallery. Subscribe to Platinum’s Forex Newsletter

Wishing you all the best.

Earnings Disclaimer:

The information you’ll find in this article is for educational purpose only. We make no promise or guarantee of income or earnings. Use your best judgement and perform due diligence before using the information in this article. Your success is still up to you. Nothing in this article is intended to be professional, legal, financial and/or accounting advice. Always seek competent advice from professionals in these matters. If you break the city or other local laws, we will not be held liable for any damages you incur.

How To Trade Non-Farm Payroll

Once again, we come to that time when a question haunts every trader on the first Friday of the month:

How to trade Non-Farm Payroll (NFP) Profitably and what NFP trading Strategy can I use?

In this opportunity, allows us to share with you some information about NFP and how to trade forex news.

Let us demonstrate how Platinum members take advantage of this event every month.

This results in hundreds of pips from a simple strategy named aptly as “The News Trading Strategy”.

What is NFP News Release?

The NFP is released by the US Department of Labour. The report is usually published on the first Friday of every month. The data in the report is an indicator of the employment situation in the US. It measures the change in the number of newly employed people in the US, excluding workers in the farming industry.

A number which is higher than the market forecast is considered Bullish for the US Dollar and lower than the forecast is Bearish.

Non-Farm Payroll Date and Time

Time of the event: September 1st, 2017 13:30 GMT

Why is NFP a trading event?

The release of Non-Farm Payroll report is a trading event that can move the currency pairs such as the Euro (EUR/USD) up to 100 pips in a minute.

If you are new to Forex, you need to understand that the release of the Non-Farm Payroll reports every month is a market moving event. The Progress of the US Economy is measured by 12 major fundamental events and the Non-Farm payroll is a leading indicator that measures the job creation aspect of the economy.

 

The NFP report provides information about the change in the number of employed people during the previous month, excluding the farming industry. Job creation is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity.

Most professional traders are waiting for the event this week. The Dollar has been taking some heavy punishment over the last few weeks and this could be the turning point for it moving forward.

The Dollar has been taking some heavy punishment over the last few weeks and this could be the turning point for it moving forward.

Platinum members look forward to trading the Euro on the 4th buy or sell zone on NFP for stop hunts and trend reversals with 20 pips stop losses.

What happened Previously and how does NFP affect Forex?

According to the report released in August for the month of July, the Non-Farm Employment Change produced better figures than expected to balance the equation again and reaffirming the strong trend on the labour market which had come from a good result for June which reported the creation of 222K jobs later being revised to 231K. The August report came out at 209K against a forecast of 182K.

Market sentiments

Fundamentals is a big part of trading and sentiment is built on market trends.

Since we should be at present past full employment in the US Economy, that characterises a robust pace of job growth which should begin to ease. So far, each of the business survey employment indexes did pull back in the month of July, potentially signalling a softer pace of growth in August. Even though not much changed and all should be well above their long-run average levels, therefore, even if growth does slow down, it will still remain very strong. Platinum Trading Analysts expect a 175k gain in August.

Do trade the NFP with caution.

How to trade the Euro on NFP

The expected number for April in the NFP report to be released this Friday is 180K. The deviation figure to trade the NFP is +45/-45.

Let me explain what this means:

The Bear Trade

If the actual number on NFP is above 225K compared to the estimated 180K, sell the EUR/USD with 25 pips stop loss.

The Bull Trade

If the actual number on NFP is below 135K compared to the estimated 180K, buy the EUR/USD with 25 pips stop loss.

How to trade the Yen on NFP

The expected number is 180k. The deviation to trade the Non-Farm Payroll is +45/-45.

The Bull Trade

If the NFP number is above 225K, buy the USD/JPY with 25 pips stop loss.

The Bear Trade

If NFP number is below 135K, sell the USD/JPY with 25 pips stop loss.

Important Note: Always keep an eye on the market news and feeds in order to trade the event with proficiency. For Platinum members, it would as easy as logging on and having the “Institutional News Feed” open.

The Platinum News Trading Strategy

How to Trade the NFP using the Platinum Trading System:

Always keep the Institutional News feed open.

Make sure you have your eyes on the clock.

As soon as the news event comes out there will be a spike. The objective is simple: Go long or short in the 4th buying or selling zone of the day with 20 pips stop loss. We are looking for 30 pips reversal from this with a 20 pip stop loss.

Regardless of the result of the trade, this will be the only trade on the system for NFP.

Never do revenge trading.

Time for the trade to be taken is between 13:30 and 13:45. The trade is invalid after this time.

You must be there live to take the trade on 4th trading zone.

Points to be noted when trading during NFP days:

Be careful of being in trades an hour before and after NFP.

Trade the 2nd level zones and trade the range prior to 12:00.

Do not trade USD/CHF on NFP days.

To trade the news event, trade 4th buying or selling zones on the actual news event with a 25 pip stop loss and 30 pips take profit.

Trading on NFP days is a VERY high risk and many traders get chopped up trying to call the turn.

Do not worry too much if you take the trade or don’t take the trade, there will be plenty more coming our way.

How to become a profitable NFP Trader?

The Platinum Formula

Perfect Fundamentals + Perfect Technical Analysis + Perfect Logic + Perfect Risk Management = Perfect Trade

The Platinum Way

At Platinum, we teach all individuals from different walks of life to become a full-time trader or create a secondary revenue stream by trading part-time.

Learn how to trade Forex the Institutional Way. We educate our clients to think like Institutional Traders and not like Retail Traders. Trading in the same style is not only more profitable but also far less stressful for the retail trader. We want you to make your trading decisions based on confirmed entry points and be confident with each trade that you make.

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Wishing you all the best.

Earnings Disclaimer:

The information you’ll find in this article is for educational purpose only. We make no promise or guarantee of income or earnings. Use your best judgement and perform due diligence before using the information in this article. Your success is still up to you. Nothing in this article is intended to be professional, legal, financial and/or accounting advice. Always seek competent advice from professionals in these matters. If you break the city or other local laws, we will not be held liable for any damages you incur.

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