How to Trade Safely Around High Impact News Release

In the fast-moving world of forex trading, news events can trigger massive price swings in a matter of seconds. Central bank announcements, employment reports, and inflation data are just a few examples of high-impact news releases that often send markets into turbulence. While volatility presents opportunities for profit, it also comes with heightened risks. Traders who fail to prepare often face account drawdowns or even wipeouts. This is why TradingPLUS helps traders to understand how to trade safely around news is crucial.

Tips #1: Understand the Nature of High-Impact News

High-impact news releases such as U.S. Non-Farm Payrolls (NFP), Federal Reserve interest rate decisions, or GDP reports, carry the potential to shift market sentiment instantly. These announcements create liquidity surges, which in turn increase volatility. Traders often witness sudden price spikes, widened spreads, and even slippage during these times.

The key takeaway? Expect the unexpected. Even if you predict the direction correctly, sharp volatility may trigger stop-losses before the market resumes its trend.

Tips #2: Time Your Trades Wisely

One common strategy is to avoid entering trades immediately before or after the release. The first few minutes tend to be unpredictable as institutions and algorithms battle for position. A safer approach is to:

• Wait at least 15–30 minutes after the announcement to allow the market to stabilize.
• Look for clear technical setups that align with the broader trend.
• Avoid over-leveraging, as sudden reversals can amplify losses.

By exercising patience, you reduce the chances of getting caught in market whipsaws.

Tips #3: Manage Your Position Size

Risk management in forex trading isn’t just about stop-loss orders; it’s also about controlling your exposure. Many professional traders recommend risking only 1–2% of your account balance on any given trade. During news events, you may want to reduce that risk even further.

At TradingPLUS, our funded account structure is designed with strict risk management rules. These safeguards ensure that traders focus on consistency rather than taking reckless bets during volatile periods.

Tips #4: Use Protective Orders

Stop-loss and take-profit orders are essential tools, especially around news releases. However, keep in mind that extreme volatility can cause slippage. To mitigate this:

• Place stop-loss orders slightly beyond key support or resistance levels.
• Use trailing stops to lock in profits if the market moves strongly in your favor.
• Consider wider stop placements with smaller position sizes to accommodate volatility.

This approach balances protection with flexibility, giving your trades room to breathe.

Tips #5: Adopt a News Trading Strategy

Some traders prefer to stay out of the market during high-impact events, while others actively seek to capitalize on volatility. If you choose to trade the news, make sure you:

• Backtest your strategy extensively.
• Focus on one or two major news events per week rather than chasing every release.
• Remain disciplined, sticking to your plan regardless of the outcome.

Remember, discipline beats emotion. Emotional trading often leads to overtrading and unnecessary risks.

Why TradingPLUS Puts Risk Management First

At TradingPLUS, we believe that long-term success in forex trading is built on effective risk control. Our unique selling point is a risk management framework that empowers traders to grow steadily, even in volatile conditions. With built-in protections and clear guidelines, we help traders avoid the common pitfalls that news-driven markets present.

Instead of fearing high-impact news releases, traders can approach them with confidence—knowing their risk is defined and manageable. That’s the TradingPLUS advantage.

Final Thoughts

High-impact news releases can be both a threat and an opportunity in forex trading. The difference lies in how you prepare and manage risk. By understanding volatility, timing your entries, controlling your position size, and using protective orders, you can trade more safely around these events.

Trading isn’t about catching every move—it’s about surviving long enough to thrive. With TradingPLUS’s risk management-first approach, traders can focus on building consistency while navigating the ever-changing forex market.

Ready to trade with confidence? Discover how TradingPLUS can support your journey with structured risk management and funded account opportunities today.