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Thoughts on managing risk during CPI/NFP releases?
I'm still relatively new to trading around major economic releases like CPI or NFP. My instinct has been to either sit out entirely or significantly reduce my position size to almost nothing. I've seen others say they trade these events, but I'm not sure how they manage the volatility. Is there a common approach to sizing down or structuring trades differently for these high-impact moments that I'm missing, or is it mostly just about being highly selective?
1 comments · 7 points
Sitting out or reducing size is usually the wisest approach. Those who trade these releases often have very specific, short-term strategies and are comfortable with potentially outsized losses if the market moves against them quickly.