It's not unusual to hear traders complain that the market spiked them out of their trade without warning. Random spikes in the market do occur from time to time without reason; but generally these rapid rises or falls in the market are caused by market announcements. As an e-mini trader, it is imperative that you are aware of what and when economic reports are going to be released. Unless you are very brave, or a very foolish, it's best to be out of the market when these reports are released. |
There are a number of websites that list each days scheduled economic announcements and it is your responsibility, as an e-mini trader, to be aware of each day's reports, and when they will be released. As a trader, it is irresponsible to be trading uninformed and in the dark. You must understand that important economic reports are market movers and it is often difficult to decipher which way the announcement will move the market you are trading.
Further, most financial websites (Bloomberg, ForexFactory, Econoday) will rank the economic reports in terms of their importance. Some announcements will have a negligible impact on the market, while others can move the market 50+ points, sometimes more. If you are happily sitting in a trade during one of these economic reports you stand a good chance of some unexpected market movement. Often times the movement caused by these reports will send the e-mini markets careening up and down as traders try to sort out how the news will impact of the markets.
It is important, in my opinion, to not be in an e-mini trade when these reports of economic news are made public. I have made some very good trades in the aftermath of important announcements, but have had several disastrous trades trying to predict which direction the economic report will push a given e-mini contract.
In summary, an important part of your pre- trading ritual should be to check the day’s announcements and note the time and importance of each report. There is no excuse for an experienced e-mini trader getting surprised by a market spike that could have been ascertained with a minimum of effort. Even better, I generally scan the entire week to see which days have the most important announcements and jot them down on a sticky note and stick it on my screen lest I forget. Don't get caught in unexpected moves because you failed to do your homework.
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