Nonfarm Payrolls Strategy Review
Nonfarm payrolls Report is an employment report released monthly, usually on the first Friday of every month, and heavily affects the US dollar, the bond market and the stock market. The U.S. Department of Labor Bureau of Labor Statistics, surveys about 141,000 businesses and government agencies, representing approximately 486,000 individual work sites, in order to provide detailed industry data on employment, hours, and earnings of workers on nonfarm payrolls.
Okay, it was just the introduction, just to understand how powerful this NFP report is. So, how are we, the traders should enter a trade with all this information?
Let's start with step #1 : You need to open the economic calendar as describe at the picture :
As you can see, the report wasn't so good for the US Dollar, it means that the actual number 223k VS forecast of 230k has forced the USD/JPY graph to fall down immediately , therefore, the smartest way to execute a trade in this case was by a 'put' trade immediately when the numbers were published. Just look how beautiful it is ! The immediate influence was so continuous that you are deep in the money ( ITM )!
Step #4 : Ok, the numbers is here, you must be quick and focus in order to catch a trade with the best price level that you can .
Most important notice : If you decided to trade with the USD/JPY graph you must remember that there is a direct correlation, which means that if you see a bad report ( red number ) then you should take a 'put' trade & vice versa if you see a good report (green number) then you should take a 'call' trade. Remember, those are instruction for a direct correlation as USD/JPY but if you prefer to trade with EUR/USD or Gold it works at the opposite way which means that if you see a bad report ( red number ) then you should take a 'call' trade & vice versa if you see a good report (green number) then you should take a 'put' trade.
Thank you for reading our NFP strategy review. If you are a new Binary Options trader the NFP report is exactly for you! But you shouldn't let the emotional feelings to beet you down, be determined to win! If you're new to binary options trading you must trade with an EU regulated broker like Markets.com with an initial deposit of only $100! OR you can visit our best brokers list.