Non Farm Payroll Day Trading Strategy

Day trading Non Farm Payrolls can be very challenging for multiple reasons.

First, every trader watches the Non Farm Payroll news report because it is the biggest news we have to work with.  This means that every day trader, speculator, swing trader, and money-manager is watching Non Farm Payrolls @ 830am on Friday’s, and when everyone watches at the same time, the markets are too ‘efficient’ and there is little profit to be made.

Second,  because Non Farm Payrolls are so important, most professional traders will research it SO much that by the time the Non Farm Payrolls news report is released on Friday, the market has already priced the estimated news into the market.  This is why if the news comes out as-expected we usually see very little reaction because everyone in the market watching Non Farm Payrolls have already made their ‘bets’ which is reflected in the current price.

Third,  Non Farm Payrolls have many different aspects to the report itself, such as the unemployment rate, average hourly earnings, and the total payrolls of all the US Paid workers that are not government employees, nonprofits, or farm employees.  This is much different than all of the other news we get every day, such as Jobless Claims, which only reports ONE piece of information, making it easier for traders to ‘digest’ the information and then start to trade with it.  Non Farm Payrolls has lots of info for traders to understand, which creates this ‘lag’ in the reaction to this news @ 830am on Friday’s which makes it difficult to tell when and where the market’s reaction will take place.

In conclusion, Non Farm Payrolls are an excellent opportunity to make some easy profit, but you need to know HOW and WHEN to trade it.  Be prepared for next time, and see you in the live trade room!

Non Farm Payroll Day Trading Strategy

Non Farm Payroll Day Trading Strategy