When I first asked my mentor a number of years ago, about trading around major news events, he told me, "not to stand in front of an oncoming locomotive". He trades in the tens of billions of dollars. He then told me that he and his traders go for breakfast during the news and come back when things have settled down.
When I further asked him about the huge spikes that frequently occur in advance of major news events and if the dealers were stopping everyone out, he told me, "no, it's the institutions pulling their orders in advance of the news". This creates a lack of liquidity and makes for some horrible fills for those that try and trade it.
If the Biggest Traders in the world are not trading these events... why do so many retail traders try to pick up some quick pips???
www.privateforexcoaching.com
Enjoy the weekend.
Great trading!
Michael
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