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How To Trade NFP Data with Olymp Trade And Do Well

When it comes to economic data releases, there are few that are more important than the monthly Non-Farm Payrolls report. This report can have a major impact on financial markets, and as such, it is always closely watched by traders.

In this article, we will show you how to trade NFP data with Olymp Trade. We will also provide some helpful tips that should enable you to make successful trades.

What is NFP data?

Nonfarm payroll data is a key economic indicator released monthly by the United States Department of Labor. The report measures the number of new jobs created in the previous month, excluding farm workers, government employees, and private household workers.

The release of nonfarm payroll data is closely watched by traders and investors, as it can give clues about the health of the economy and the direction of interest rates. A strong jobs report usually indicates a healthy economy and may lead to higher interest rates, while a weak jobs report may signal an economic slowdown and lead to lower rates.

When is the NFP data released?

The nonfarm payroll data is released on the first Friday of every month at 8:30 am EST (13:30 GMT). The release is often followed by a volatile reaction in the markets, so it's important to be aware of the scheduled release time if you're planning on trading.

In addition to the headline number for new jobs created, the nonfarm payroll report also includes information on average hourly earnings and the change in the unemployment rate. Both of these numbers are also subject to volatility, so it's important not to get caught up in the short-term price swings and focus on trading the bigger picture trends.

How to make the best use of NFP release with Olymp Trade?

The NFP or non-farm payroll report is one of the most highly anticipated economic releases for forex traders. Every first Friday of the month at 8:30 am EST, the Bureau of Labor Statistics releases this report, which covers employment data from the previous month.

The NFP report is closely watched by the Federal Reserve when setting interest rates, so it can have a big impact on currency markets. A strong NFP number usually leads to a stronger US dollar, while a weak number usually leads to a weaker dollar.

Here are some tips on how to trade the NFP release with Olymp Trade:

1. Know what to expect - Before the release, make sure you know what the consensus forecast is and what the previous month's number was. This will help you gauge how big of an impact the release could have on markets.

2. Have a plan - Don't just blindly enter a trade when the numbers come out. Have a plan for what you're going to do if the number comes in above or below expectations.

3. Be prepared for volatility - The NFP release can often lead to increased volatility in currency markets. Make sure you have your stop-losses in place so you don't get caught in a sudden move.

4. Don't overtrade - It can be tempting to try and trade every little move that happens after the NFP release, but this is often a recipe for disaster. Stick to your plan and don't overtrade.

The rules for NFP Trading Strategy

1) Look for a strong NFP number that is well above expectations. A strong NFP number indicates that the economy is doing well and that businesses are hiring. This is good news for the stock market.

2) Sell when the NFP number is below expectations. A weak NFP number indicates that the economy is weak and that businesses are not hiring. This is bad news for the stock market.

3) Be careful of trading on the day of the NFP release. The market can be very volatile on this day and it is best to wait for the dust to settle before making any trades.

4) Use stop losses to protect your profits. Stop losses are important in all types of trading, but they are especially important when trading on volatile days like the day of the NFP release.

5) Take profits when you have them. Don't let a winning trade turn into a losing trade by holding on too long.

The Pitfalls

When trading NFP data, there are a few pitfalls to be aware of. First, remember that the data is released at 8:30am EST on the first Friday of every month. This can often lead to increased volatility and price movement around this time.

Second, it's important to have a clear plan and strategy in place before trading NFP data. This data can be very volatile and unpredictable, so it's crucial to know exactly what you're doing before entering any trades.

Finally, don't get caught up in the hype surrounding NFP data. It's easy to get caught up in the excitement and make impulsive decisions, but this can often lead to losses. Stick to your plan and don't let emotions take over.

Conclusion

In conclusion, the best way to trade NFP data with Olymp Trade is to use a strategy that suits your trading style and risk tolerance. If you are comfortable with taking more risks, then you may want to consider using a scalping or day trading strategy. However, if you are looking for a more conservative approach, then swing trading or position trading may be more suitable for you. Whichever strategy you choose, make sure that you backtest it thoroughly before implementing it in live markets.