How to Trade a Fundamental Announcement

Fundamental ChartOne of the more frequent questions we get from traders is how to trade a fundamental announcement. These have the potential to move a currency pair hundreds of pips within seconds. Of course, that may be a move against you as easily as a move in your favor. Normally, when we trade the Forex Market, we’re looking for those big moves, but we patiently wait days, weeks, even months for them to play out. Fundamentals can sometimes give us that in minutes!

So with a Fundamental Announcement, we sometimes have the equivalent of one of those bonus levels in a video game where we can rack up points very quickly. Of course, you have to know how to play the game and the bonus level in order to clean up. Going into a Fundamental Announcement and hoping you picked the right direction is how traders wipe out their accounts in seconds. Sometimes a pair moves up 300 pips in less than a second only to crash back down by 500 pips the next. Or it may climb a 100 pips, retrace down 50 pips, and then go up by 200 pips in a few minutes.

If you compare one announcement with the same one a month later, they can appear capricious, unpredictable, and dangerous. And don’t get me wrong, they can behave very capriciously. But if you have a strategy for them, they offer great opportunities for quick and significant gains.

Here at Special FX Academy, we love trading Fundamental Announcements. They are the cherry on top of our sundae. We’d like to invite you to trade this Friday’s US Non-Farm Payroll with us. Our treat. 100% free with no strings attached. Well, maybe one string. You need to sign up to our newsletter using the form on the sidebar to the right of this post. Your invite to Friday’s Non-Farm Payroll Trading Room will be sent to you by 8pm US Eastern Time on Thursday, a full 12 hours before we open up the room.

You’re already subscribed? No worries, you’ll get the invite at the same time, no need to do anything.

See you on the inside!


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Founder and Director of Special FX Academy, Andres is now a full time trader, mentor, and writer. In the past, Andres has held director level positions at venerable trading exchanges including New York Stock Exchange, Euronext, and Fannie Mae. Buy his Forex Trading book here!

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