Many traders believe that all high-impact news events should be avoided — that they’re unpredictable, dangerous, and best left alone. This belief usually comes from early experiences with volatility: slippage, stop-outs, and emotional trades gone wrong. While it’s true that news events carry higher risk, the idea that they must always be avoided is a myth. In fact, high-impact news creates some of the best trading opportunities — if you’re prepared, structured, and know how to manage your risk.

This article unpacks the truth about trading during high-impact news and how skilled traders turn volatility into an edge — not a threat.

Why traders avoid news events

1. Fear of slippage and stop-outs
Spreads widen and price can spike violently in both directions — wiping out stop-losses or causing unexpected fills.

2. Emotional decision-making
Fast price movement triggers panic in undisciplined traders, leading to revenge trades, early exits, or chasing.

3. Past bad experiences
Many traders have been burned trying to “guess” the outcome of events like NFP, interest rate decisions, or CPI — leading them to avoid news entirely.

4. Inconsistent reactions
Even with a strong data release, price sometimes moves the opposite way — confusing traders and eroding confidence.

5. Platform instability
During major events, some brokers experience lag, re-quotes, or execution delays, especially on low-tier platforms.

Why high-impact news should not always be avoided

1. News creates volatility — and volatility = opportunity

• Fast-moving price = more range to capture profits
• Clean breakouts, momentum trades, and liquidity sweeps often occur around major news

2. You don’t have to trade the event itself

• Many traders wait for post-news setups: confirmed direction, retests, structure
• Safer entries exist minutes or even hours after the spike

3. Some setups depend on news

• Interest rate trades, macro positioning, and sentiment shifts often rely on scheduled news catalysts
• Avoiding all news means missing the very events that move markets

4. Professionals thrive in news volatility

• Institutional traders, prop firms, and experienced independents regularly trade during news — not by guessing, but by reacting to key levels and flow

5. News is predictable in timing — not direction

• You may not know how the market will react, but you always know when the release is scheduled
• This makes it easy to prepare, reduce size, widen stops, or step aside briefly if needed

How to trade high-impact news safely

1. Know your calendar
Track key events: NFP, CPI, FOMC, central bank decisions, GDP, etc. Use colour-coded calendars to mark red-flag events.

2. Reduce position size before big releases
Halve your size or scale out partially if already in a trade as the event approaches.

3. Avoid trading into the release
Don’t guess the number — trade the reaction once price confirms a direction.

4. Use wider stops and avoid clustered orders
Give your trade breathing room. Tight stops often get hunted during news spikes.

5. Focus on post-news structure
Wait for the spike, let price settle, and trade the follow-through (e.g. retest of breakout zones, trend continuation).

When you should avoid news events

• If you have no experience trading volatile conditions
• If your broker has poor execution or extreme slippage
• If your strategy is slow, passive, or not built for speed
• If you’re emotionally reactive or trading to recover losses
• If the news is unscheduled or unexpected (e.g. war, flash crash)

Conclusion

No — you don’t need to avoid all high-impact news. You need to respect it. News brings volatility, yes — but also clarity, range, and opportunity. The traders who succeed around news don’t predict outcomes — they prepare, adapt, and react intelligently. The key isn’t avoidance — it’s mastery of timing, risk, and execution.

To learn how to trade high-impact news with precision and control — before, during, and after major releases — enrol in our Trading Courses at Traders MBA, where we turn volatility into strategy.